MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. May 27, 2015 (REPORT 21) 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 - 2.1853-2.4154 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .67-.93 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 70 0 120 0 120 SOUTHEAST STATES 0 2 0 10 0 0 The Memorial Day weekend has passed with distribution contacts noting a somewhat quiet holiday, beyond expected milk loads being cancelled. Class I demand is declining throughout the region as school wrap up next week. Northeast milk production continues to climb slowly to the peak. Bottling orders are still being cut. Milk output in the Mid-Atlantic continues at high rates, with volumes not expected to decline anytime soon. Some manufacturers are playing catch-up due to heavy weekend milk intakes. Additional storage was required in some instances, aside from usual facilities. Southeast milk production is steady. Milk export shipments totaled 2 f.o.b spot loads, 8 less than the previous week. Manufacturing is operating at/near capacity. Milk volumes were burdensome at some facilities, limiting the processors' effectiveness. Florida's milk output is holding. However, with developing seasonal temperatures, cow comfort is expected to decline, reducing milk volumes. Manufacturing milk intakes are increasing as bottling orders decline. Milk export shipments totaled 70 f.o.b spot loads. According to the DMN National Retail Report-Dairy, for May 22-28, the national weighted average advertised price for a gallon of milk was $2.73, an $0.17 drop from last year. Cream availability is adequate. While supplies were readily available during the holiday weekend, reports suggest cream is closer to even following the holiday. Cream multiples for all Classes ranged 1.14-1.26. Market participants are anticipating an increase in multiples as the week advances. At the CME Group, Grade AA butter closed Wednesday at $1.8700, down $0.0600 from a week ago. Bottled cream production is starting to improve. Ice cream production is steady to heavier after the holiday. Condensed skim supplies are heavy. Sales were noted well below market prices. Loads cleared well into other regions over the course of the holiday. 1300C Daniel.Johnson@ams.usda.gov 608.557.7006 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