MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. June 03, 2015 (REPORT 22) ** Resent to update export shipments 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 - 2.2560-2.4854 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .67-.87 Northeast - Class III - spot prices - .67-.87 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 70 0 150 SOUTHEAST STATES 0 0 0 2 0 0 "Out of control" is the prevailing sentiment amongst some milk processors as heavy milk volumes flood into regional balancing plants. Most everyone in the supply chain is feeling the impact of seasonally heavy milk supplies, although output does vary in areas of the region. Accordingly, peak production is steady in the Mid-Atlantic. Fluid milk sales have declined marginally. Manufacturing plants are operating at capacity levels, as balancing plants find milk volumes generally burdensome. Production in the Northeast is growing at marginal rates. Milk orders have adjusted lower as traditional schools have closed for the summer months. Manufacturing is full. Class II orders are seasonally active. Southeast's farm-level milk production is steady to slightly lower with output remaining ample. Temperatures are affecting cow comfort. Milk orders are holding. A major plant breakdown required moving multiple milk loads to various sister plants. Export/import fob shipments are balanced. Florida's milk production is slowing as daytime and nighttime temperatures move higher. Sales dropped off sharply with school closings. **Milk export shipments totaled 140 loads. According to the DMN National Retail Report-Dairy, for May 29 - June 4, the U.S. weighted average advertised price for a gallon of milk was $2.53, down 40 cents from last year and down 20 cents from last week. Cream supplies have tightened as loads are not as easy to obtain as in past weeks. Shipments to the Midwest are fewer. Prices are inching higher, reflecting increases in multiples and basing points around the butter price. This week multiples for all Classes range 1.18-1.30. Ice cream and ice cream mix production is active as higher volumes of cream move in that direction. The DMN monthly average for Northeast Class II f.o.b spot cream during May 2015 was $2.2627, compared to $2.7563 a year ago. At the CME Group, Grade AA butter closed Wednesday at $1.9375, up $0.0675 from a week ago. Condensed skim supplies are plentiful, well above seasonal demand. Dryers are operating at beyond capacity levels, as plants endeavor to manage substantial condensed skim volumes. In addition, supplies are moving through Class II end-user contracts, with processors offering incentives for customers taking extra loads. The DMN monthly average for Northeast Class III condensed skim during May 2015 was $0.8523, compared to $2.0812 a year ago. 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