MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  July 01, 2015 (REPORT 26)                                                   

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 -  2.6330-2.8620                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .40-.85                        
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     0     0    40     0   105                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

"Too much milk" continues to chime around balancing plants in the Northeast 
and Mid-Atlantic regions.  Plants are anticipating being slammed with added 
milk surpluses as production schedules ease for some manufacturers over the 
July 4th holiday.  Sales to Class I began the week steady to strong, but 
orders are expected to decline leading into the holiday weekend.  In the 
Southeast, the impact of warmer temperatures on cow comfort continues to 
weaken farm-level milk output.  Bottling orders are stronger this week, as 
some operations look to meet production needs prior to a July 4th holiday 
break.  Manufacturing milk supplies remain adequate for production needs. 
F.O.B milk export shipments are balanced this week.  Temperatures in Florida 
remain hot, although not at the heat index levels seen in past weeks.  Milk 
production continues to drop.  Supplies are adequate however, as reductions 
in fluid demand balances milk supplies.  Milk export shipments declined 
again, with no reported distributions outside the state.  The trend is likely 
to continue through July.  According to the DMN National Retail Report-Dairy, 
for June 26-July 02, the U.S. weighted average advertised price for a gallon 
of milk was $2.38, down 73 cents from last year and down 14 cents compared to 
last week.  Cream demand increased this week, prompting multiples above 
previous weeks.  Multiples for all Classes range 1.38-1.50.  The push for 
cream, and tightening of supplies, resulted from strong Class II demand as 
part of a pre-July 4th processing effort.  A number of cream based plants 
targeted completing a week of output in the holiday shortened week.   
Processors are clearing readily available condensed skim supplies to existing 
contracts.  Spot market activity is minimal.  Most plants are content with 
channeling condensed skim to dryers in lieu of discounting, yet there are a 
few cases of condensed skim being severely discounted to Class II production.  

1100C 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