MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. July 22, 2015 (REPORT 29) 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 - 2.7093-3.1203 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .75-.84 Northeast - Class III - spot prices - .85-1.00 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 50 0 35 SOUTHEAST STATES 0 0 0 0 0 0 Northeast and Mid-Atlantic milk production is mostly steady. Manufacturing milk supplies in the regions remain heavy. Balancing plants are running full work schedules. Sales to Class I are at seasonal levels. In the Southeast, hot-humid conditions intensified, sending milk production lower. Loads planned for secondary plant usage are being pulled to provide for Class I needs. With schools scheduled to re-open in two weeks, sales to Class I are expected to have a greater impact on processors' milk supplies. Milk supplies are currently balanced, limiting export/import shipments. Milk production at the farm is holding strong in Florida. Sales to bottling are at seasonal levels. The tourist season is keeping Class I at a good tick. Schools are expected back online in the coming weeks and should drive milk sales up. No Grade A milk shipments have gone out or come into the state. Cream markets are firming. Sources noted that cream supplies have been unattainable at times. Cream multiples for all Classes range 1.45-1.67. Occurrences at 1.67 f.o.b. are uncommon, and primarily based on early week purchases and adjustments. Overall, demand is strong. A number of trades required lengthier shipments than usual across regions. Cream flows, in general, are declining to butter production. Sales to ice cream are steady. Condensed skim is moving under contract with limited spot market activity. Heavier volumes are clearing to Class II and III with production increases. According to the DMN National Retail Report-Dairy, for July 17-23 the U.S. weighted average advertised price for a gallon of milk was $2.98, down 6 cents from last year, but up 17 cents from last week. MILK PRODUCTION: According to NASS, milk production in the 23 major states during June 2015 totaled 16.4 billion pounds, up 0.7% from one year ago. Eastern states' milk production is as follows: June 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 223 + 2.3 New York 1,193 + 2.9 Pennsylvania 909 + 3.1 Vermont 226 + 0.4 Virginia 147 + 0.7 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