MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. April 15, 2015 (REPORT 15) 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 - 1.9391-2.1313 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .96-1.05 Northeast - Class III - spot prices - 1.00-1.14 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 0 100 0 130 0 140 SOUTHEAST STATES 0 0 0 0 0 0 Milk production in the Northeast is on the rise, with seasonally warmer temperatures. Balancing plants are running full as they manage heavy milk volumes. Class I demand has improved. Mid-Atlantic milk production is seasonally higher. Manufacturers are scheduling heavily to maximize production of butter and nonfat dry milk as milk supply volumes increase. Spring flush in the Southeast continues to increase milk production. Rainfall is likely to impact production in some areas. However, volumes are expected to rise incrementally in the area over the next few weeks before peaking. Strong Class I sales led to the reallocation of area manufacturing milk supplies. Florida's milk production is steady. A marginal decline is anticipated as temperatures linger 5-8 degrees above normal, impacting cow comfort. Class I sales have bounced back following the holidays. Milk shipments exported this week totaled 100 spot loads, 30 less than last week and 40 fewer than a year ago. According to the DMN National Retail Report-Dairy, for April 10-16, the U.S. weighted average advertised price for a gallon of milk was $2.80, a $0.20 decline compared to last year, but a $0.23 increase from last week. Cream usage for manufacturing butter surged in the Northeast. Interest from ice cream processors improved in the warmer Southern states. Demand is seasonally moderate. Some contacts noted a backup in cream supplies, as a scheduled maintenance activity limited processing at a Northeast manufacturing plant. Cream multiples for all Classes ranged 1.11-1.22. At the CME Group, Grade AA butter closed Wednesday at $1.7700, up $0.0200 from a week ago. Condensed skim is plentiful. Spot transactions are light. Nonfat dry milk offers a better pricing incentive for cheese manufacturing. Dryer schedules are seasonally heavy as condensed skim volumes strain capacity at some plants. 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