MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. April 08, 2015 (REPORT 14) 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 - 1.9353-2.1816 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .92-.96 Northeast - Class III - spot prices - 1.00-1.05 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 0 130 0 140 0 120 SOUTHEAST STATES 0 0 0 0 0 0 Although the spring flush is slow to begin in the Northeast, as in some areas of the East, production is seeing an uptick. Milk intakes are steady to higher at various balancing plants. Bottling demand has gained little ground since tapering prior to the holiday. Mid-Atlantic milk supplies are trending higher. Production is building seasonally around the spring flush. Sales for Class I usage are unchanged to higher. Southeast farm-level milk production continues to rise with the flush. Most manufacturing distribution channels are full. Bottlers' orders are down relative to volumes of available milk supplies. Balancing plants are catching up from holiday weekend milk volumes. Class I demand is steady. This week in Florida, milk production in general is steady to higher. Class I interest has declined slightly, following the typical after Easter/Passover slowdown. This week, F.O.B spot shipments totaled 130 out of the state loads, in comparison to 140 the previous week. According to the DMN National Retail Report-Dairy, for April 3-9, the U.S. weighted average advertised price for a gallon of milk was $2.57, a $0.43 decline compared to last year and a $0.31 decline from last week. Cream supplies remain heavy. Surplus loads transferred across regions earlier in the week. However, suppliers note that levels are now more manageable with most loads staying in the East. Cream multiples for all Classes ranged 1.10-1.24. Movements through contracts are steady, largely due to ice cream and ice cream mix manufacturers. The DMN monthly average of the range price series for Northeast Class II F.O.B spot cream during March was $2.0655, compared to $2.3856 a year ago. At the CME Group, Grade AA butter closed Wednesday at $1.7500, down $0.0100 from a week ago. Sales of condensed skim on the spot market remain nominal. Powder production is at/close to capacity. Class II plants are gradually increasing the use of condensed skim. Cheese makers are using NDM to extend vat yields due to pricing advantages. Class III nonfat solids price moved fractionally higher based on the recent Class and Component Prices. DAIRY PRODUCTS: According to NASS, hard ice cream production in the Atlantic region for February 2015 totaled 13.2 million gallons, 24.5% more than a year ago and 8.4% more than the previous month. Yogurt production in the U.S. totaled 421.3 million pounds, up 7.2% from a year ago and up 11.8% from the previous month. Cumulative production through February totals 798.1 million pounds, 1.3% more than a year ago. 1300C Daniel.Johnson@ams.usda.gov 608.577.7006 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- home