MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. May 20, 2015 (REPORT 20) 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 - 2.2376-2.5804 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 0 120 0 105 0 120 SOUTHEAST STATES 0 10 0 4 0 0 Milk volumes are at/near peak levels leading into the Memorial Holiday weekend. Manufacturers and milk handlers are experiencing significant challenges, with the capacity to process those loads at the forefront of concerns. Driver availability is limited, and milk tankers are delayed for hours unloading in some instances. Manufacturers report production efforts could potentially be compounded, due to lighter schedules over the holiday by others in the processing chain. Northeast and Mid-Atlantic balancing plants are operating at full capacity. Class I demand is steady to lower with school closings still in process. Southeast manufacturing plants are busy as seasonally heavy milk volumes peak. Bottling plants decreased their orders with dips in Class I demand. Milk exports totaled 10 f.o.b. spot loads compared to 4 the previous week. Florida's milk production is steady. Temperatures vary between the high 80s to low 90s, with humidity on the rise. Class 1 sales are steady but a downturn can be expected as remaining schools close. Milk export shipments totaled 120 f.o.b spot loads, 15 more than the previous week. According to the DMN National Retail Report-Dairy, for May 15-21, the national weighted average advertised price for a gallon of milk was $2.72, an $0.18 decline from last year, but a $0.10 increase from last week. Cream is readily available. The bulk of cream multiples for all Classes ranged 1.11-1.28. With good demand and timing of acquisition, the upper end of the range increased slightly compared to last week. Cream usage is steady for processing cream cheese. Ice cream demand, although good, is expected to see a slight downturn over the course of the Memorial Holiday. At the CME Group, Grade AA butter closed Wednesday at $1.9300, down $0.1300 from a week ago. Condensed skim supplies are moving primarily through contracts, with very little spot sale activity. Market participants see supplies as somewhat burdensome, as they look for homes for surplus loads. Loads are being cleared with discounts through agreements with contractual customers. Heavy drying activity is steady, adding to the shrinking of supplies. MILK PRODUCTION: According to NASS, milk production in the 23 major states during April 2015 totaled 16.6 billion pounds, up 1.7% from one year ago. Eastern states' milk production are as follows: April 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 237 + 3.0 New York 1,157 + 1.9 Pennsylvania 930 + 2.8 Vermont 222 NC Virginia 154 NC 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