MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  June 17, 2015 (REPORT 24)                                                   


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 -  2.3968-2.5840                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .75-.95                        
Northeast - Class III - spot prices -   .85-.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    80     0   120                                  
SOUTHEAST STATES         0     0     0    18     0     0                                  

Northeast farm-level milk output is heavy.  Manufacturing plants report 
little to no reductions in milk receipts.  Contacts feel production is 
at/near the peak.  Sales to Class I are steady to lower.  Mid-Atlantic 
milk production is steady to lower. Hot and humid conditions prevail, 
limiting output in areas of the region.  Manufacturing supplies remain 
heavy, as the reduced demand from school closings offset lower production 
volumes.  Class I demand is mostly steady.  In the Southeast, milk 
production is seeing noticeable declines as load sizes decrease.  Tanker 
cooling issues are being reported, with soaring temperatures and humidity.  
Orders increased, promoting pulls on milk from secondary plants to offset 
unexpected shortages.  This week, no f.o.b. milk shipments are reported. 
Florida's milk production is on a steady decline.  Fluid sales were on the 
up-tick throughout the week.  Sales are expected to hold steady into the 
July 4th holiday, before seeing a seasonal drop.  However, tourism in the 
state is up in 2015, and could potentially keep sales flat to slightly up.
Export milk shipments totaled 70 loads this week, 10 truckloads fewer than 
last week.  According to the DMN National Retail Report-Dairy, for June 
12-18, the U.S. weighted average advertised price for a gallon of milk was 
$2.63, down 57 cents from last year but up 36 cents from last week.  Cream 
is somewhat limited as demand grows.  Cream spot prices continue to rise.  
Multiples for all Classes range 1.28-1.38.  This is attributed in part to 
pulls on cream supplies from strong Class II production and less surplus 
cream availability from fluid plants.  Cream is trading based on buyer 
needs, time of purchase, and location.  Condensed skim is being dried at 
very high rates.  Supplies are clearing through contracts, with limited 
spot sales transactions.  As well, sales to Class II and III production 
are reducing manufacturers' supplies.  

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-
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