MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  April 01, 2015 (REPORT 13)                                                  


EAST FLUID MILK AND CREAM REVIEW                                                          
                                                                                          
FLUID CREAM AND CONDENSED SKIM PRICES IN TANKLOT QUANTITIES:                              
SPOT PRICES OF CLASS II CREAM, DOLLARS PER LB. BUTTERFAT:                                 
  F.O.B. producing plants:  Northeast -  1.8694-2.0903                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .92-1.05                       
Northeast - Class III - spot prices -  1.11-1.14                                          

SPOT SHIPMENTS OF GRADE A MILK INTO OR OUT OF FLORIDA                                     
AND OTHER SOUTHEASTERN STATES                                                             
                                                                                          
                        THIS WEEK   LAST WEEK   LAST YEAR                                 
                        IN    OUT   IN    OUT   IN    OUT                                 
                                                                                          
FLORIDA                  0   104     0   104     0   120                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

As milder temperatures progress, milk production in the Northeast is 
increasing.  Milk supplies are sufficient for manufacturing needs and 
growing.  Bottlers' orders have decreased, indicative of a decline in 
retail sales, as stores have already filled coolers leading into the 
holiday.  Mid-Atlantic manufacturing plants are working to handle growing 
milk volumes.  With noted declines in bottling sales, milk intakes are 
similar to year-end holiday volumes.  Receiving backups have occurred in 
some instances, with the higher fluid intakes.  Florida milk production 
is incrementally higher.  Processors' milk supplies are heavy.  Class 
I sales are steady.  Pasture conditions are improving due to warmer 
weather, extended days, and isolated rains.  Calving is active in parts of 
the state.  This week, F.O.B. spot export shipments totaled 140 loads, 
matching last week's number.  Southeast milk production is climbing.  
Reports indicate most milk intake plants are at capacity.  Class I demand 
remains slow with multiple schools closed for spring break during the 
Easter/Passover holiday week.  According to the DMN National Retail 
Report-Dairy, for March 27 - April 02, the U.S. weighted average 
advertised price for a gallon of milk was $2.88, a  $0.30 drop compared to 
a year ago and a $0.01 decline from last week.  Spot cream availability is 
steady to higher.  With customer holiday cream accounts finalized, brokers 
are noting it's harder to move cream.  Some Eastern cream is clearing out 
of the region.  This week, cream multiples for all Classes ranged 1.10-
1.23, substantially lowering the limits of the range.  Contractual usage 
of Class II cream is more active, prompted by ice cream production moving 
seasonally higher.  At the CME Group, Grade AA butter closed Wednesday at 
$1.76, up $0.0750 from a week ago.  Condensed skim clearing into 
manufacturing is heavy.  Sales of spot loads of condensed skim are slow.  
Discounted condensed is clearing through a few transactions as low nonfat 
dry milk provides pressure.  In some instances, Class II F.O.B condensed 
skim sales are reported 4 cents under Class.  Processors are managing 
dryer schedules to channel heavy supplies to drying instead of trading at 
discount.  NDM production extends 7 days at some balancing operations.   


1300C Daniel.Johnson@ams.usda.gov 608.278.415
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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