MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. May 13, 2015 (REPORT 19) 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 - 2.0990-2.3070 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .77-.95 Northeast - Class III - spot prices - .70-.95 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 0 105 0 100 0 140 SOUTHEAST STATES 0 4 0 30 0 0 Milk production in the Mid-Atlantic region is at or near the seasonal peak and rapidly approaching the peak in the Northeast. Most manufacturing facilities are operating at or near capacity levels with significant unloading delays at some plants over the weekend. Trucking milk between plants has also become problematic as most haulers are focusing on farm loads. Warm temperatures with highs in the 90's in both regions have plant managers hoping milk volumes will level off prior to the Memorial Day holiday. Class I sales are steady to weak as schools are nearing the end of their spring terms. Southeast milk production is at the seasonal peak. Manufacturing milk supplies are very heavy and necessitating the utilization of alternative manufacturing facilities to near capacity levels. Class I sales have declined. Milk shipments in and out of the region are occurring as plants work together to best handle the heavy milk flows. Southeast milk export shipments totaled 4 f.o.b. spot loads. Florida's weather has turned warm with temperatures in the 90's, along with increasing humidity. These conditions are forecast to continue over most of the coming week and will likely lower cow comfort levels. Class I demand continues to decline as schools are nearing the end of their spring terms. Florida's milk export shipments increased marginally this week and totaled 105 f.o.b spot loads. According to the DMN National Retail Report-Dairy, for May 8-15, the national weighted average advertised price for a gallon of milk was $2.62, a $0.31 drop from last year, and a $0.06 decrease from last week. Cream multiples for all Classes moved marginally lower, compared to last week and ranged 1.11-1.22. Heavy supplies are outpacing fairly good demand. Some spot loads in the East are being substantially discounted and shipped to the Midwest to find a home. Demand for cream is active with good pulls coming from cream cheese, whip cream and Class I packaging. Churning is also fairly active where there are excess supplies of cream. At the CME Group, Grade AA butter closed Wednesday at $2.0600, up $0.1700 from a week ago. Manufacturers are attempting to move increased volumes of condensed skim to ease the strain on their nonfat dry milk dryers. Discounts for condensed skim, need to be comparable or below powder pricing in order to finalize sales. Some spot loads that need to move out of region to find a home are being significantly discounted below the class nonfat solids price. Condensed skim volumes are actively moving to Class II and Class IV production facilities. 1300C rick.whipp@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