MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. July 29, 2015 (REPORT 30) 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 - 2.7310-3.0136 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .75-.91 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 20 0 0 0 0 35 SOUTHEAST STATES 6 0 0 0 0 0 Manufacturing milk supplies in the Northeast and Mid-Atlantic regions continue to be heavy for this time of year, due to the strong milk volumes coming off farms. Some manufacturers are commenting that milk production volumes have not declined appreciably since the peak. Many manufacturers are hoping that the return of hot, humid weather will decrease milk production in the near future. Class I demand is steady compared to recent weeks. Hot, humid weather has not abated in the Southeast region. Milk production is declining at an accelerated rate. Class I demand is steady to firm. Bottling demand has prompted 6 spot loads to be imported this week. Fluid demand will be increasing in the coming weeks as schools begin their fall terms. Milk loads going into manufacturing are very limited. Florida milk production continues to decline with daytime high temperatures in the 90's. This situation is likely to continue through August. Class I demand has begun to increase slightly as bottlers prepare for the opening of schools in the coming weeks. The lower milk production levels and higher fluid demand prompted 20 spot loads of milk to be imported this week. Cream markets have marginally weakened compared to last week, but overall demand remains good. Cream multiples for all Classes range 1.45-1.60. The upper end of the range reflects the demand from fluid cream bottlers. Cream availability is dependent on the day needed with supplies tightest early in the week, less so later in the week. Cream sales to ice cream manufacturers are good. Lower component levels in milk supplies are contributing to the generally tight supplies. Condensed skim supplies are burdensome with numerous loads having difficulty finding a home. Dumping loads is an option of last resort, but is being done in some situations. Most spot loads are moving to Class II manufacturers, as loads going to Class III require discounts to complete transactions. Class IV production schedules are very active. According to the DMN National Retail Report-Dairy, for July 24-30 the U.S. weighted average advertised price for a gallon of milk was $2.49, down 55 cents from last year, and 49 cents lower compared to last week. 1100C rick.whipp@ams.usda.gov 608.557.7004 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