MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. July 08, 2015 (REPORT 27) 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 - 2.5450-3.0271 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .40-.84 Northeast - Class III - spot prices - .75-.99 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 0 0 130 SOUTHEAST STATES 0 0 0 0 0 0 In the Northeast and Mid-Atlantic regions, milk production is seasonally declining, although sources note year over year growth is sustaining. Field representatives in the Northeast report periods of very dry conditions followed by heavy rain are making new crop forage quality less-than-desired. Southeast milk production is waning. Milk volumes are anticipated to rebound slightly due to moderate weather conditions. Balancing plants? milk supplies are fairly manageable. No Grade A spot milk shipments are reported. Production in Florida is flat, with a slight downtick. As weather conditions return to seasonal norms, the heat index will likely move back into the 100s, affecting cow comfort and limiting milk output. Bottling orders are falling as individuals migrate to states where conditions are more comfortable. Grade A spot milk shipments remain balanced. Ice cream manufacturing continues to clear heavy cream volumes. Supplies remain tight. Some butter processors are opting to sell cream on the spot market rather than churn. Multiples for all Classes range 1.32-1.57. Supplies were mixed throughout the course of holiday weekend as buyers/sellers expected heavy to tighter cream supplies, which led to widening of the range. Prices for Class II condensed skim are mostly steady, with little movement in the spot market. Condensed skim is clearing heavily to drying. Product is trading at discount, as loads move outside the region. According to the DMN National Retail Report-Dairy, for July 3-9, the U.S. weighted average advertised price for a gallon of milk was $2.09, down $1.02 from last year and down 29 cents compared to last week. At the CME Group, Grade AA butter closed at $1.9200 on Wednesday, down $0.0100 from the previous week. DAIRY PRODUCTS: According to NASS, U.S. hard ice cream production in May 2015 totaled 63.0 million gallons, 10.8% less than a year ago and 7.1% less than the previous month. The Atlantic region totaled 14.8 million gallons, 4.1% less than a year ago but 8.2% more than the previous month. May yogurt production in the U.S. totaled 398.5 million pounds, up 2.3% from a year ago and up 3.5% from the previous month. Cumulative U.S. production through May totals 2.019 billion pounds, 0.2% more than a year ago. 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