MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  July 15, 2015 (REPORT 28)                                                   

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 -  2.5974-3.0784                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .70-.84                        
Northeast - Class III - spot prices -   .75-.90                                           

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    50     0     0     0    48                                  
SOUTHEAST STATES         0     0     0     0     0     0  

Mid-Atlantic farm-level milk is flat. Sources report that supplies are not as 
burdensome into manufacturing as in past weeks. Bottling orders have declined 
as milk clearing into Class II production registers a slight increase. In the 
Northeast, milk production has plateaued around the peak. Temperatures have 
been mostly moderate, helping to maintain output above previous year levels. 
Both Class I and Class II sales have reportedly moved lower. Milk production 
in the Southeast continues to decline as the heat takes a toll on cow 
comfort. Bottling orders are flat. Limited milk volumes are clearing into 
processing plants. No f.o.b. spot milk shipments were reported. Florida's 
milk production is declining and expected to continue on that trend. Class I 
is seeing a steady cut in orders. Shipments of Grade A milk advanced this 
week, as 50 f.o.b. spot loads transferred out of state. Cream Multiples for 
all Classes range 1.35-1.60. Current prices remain high enough that plants 
with the option to delay churning continue to sell cream. Ice cream demand 
that pulled heavily on cream supplies in past weeks is still active, but has 
eased slightly, as strong production worked ice cream stocks to somewhat 
comfortable seasonal levels. Cream supplies available for butter production 
are sufficient. Cream cheese interest is sluggish. Condensed skim supplies 
remain heavy. The bulk of movement is to contracts, as some processors are 
primarily supplying regular customers. Offerings are available in the spot 
market; however, buyers are shopping for the best deals. Few options are 
available in some instances except to move product out of region at the 
expense of freight cost and discounts that minimize margins. Plants continue 
to clear volumes of condensed skim to Class IV. According to the DMN National 
Retail Report-Dairy, for July 10-16 the U.S. weighted average advertised 
price for a gallon of milk was $2.81, down 23 cents from last year, but up 72 
cents from last week. At the CME Group, Grade AA butter closed at $1.8525 on 
Wednesday, down $0.0675 from the previous week.





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