MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  August 12, 2015 (REPORT 32)                                                 


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 -  2.7064-3.1243                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .60-.91                        
Northeast - Class III - spot prices -   .70-.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                 60     0    50     0     0     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                   

Farm-level milk production in the Northeast is off the peak. However, output 
remains strong after maintaining higher than anticipated levels for several 
weeks. Manufacturing milk supplies are ample. In the Mid-Atlantic, milk 
production is tapering. Balancing plants report lower milk intakes, with a 
few facilities handling more milk over the weekend. Bottling sales are mostly 
steady. Farm level milk production is seeing some sharp drops in the 
Southeast due to continued heat and humidity. Temperature issues are a 
concern for long haul loads. Sales to Class I are continuing to build, as 
most schools will be in session next week. Florida's weather has been very 
hot and heat indexes are reported in the triple digits. Rain has slowed but 
expected back in the forecast by the end of this week. As a result, milk 
production continues to decline. Sales are climbing and expected to be 
stronger as schools head into full swing. Spot import milk shipments are 
increasing, with 60 loads this week, compared to 50 last week. According to 
the DMN National Retail Report-Dairy, for August 7-13, the U.S. weighted 
average advertised price for a gallon of milk was $2.50, down 56 cents from 
last year, but up 14 cents compared to last week. The cream market looked as 
though it was softening into last weekend but that changed with heavy trading 
at the first of the week. Buyers scrambled to find loads as availability 
diminished. This week, cream multiples range 1.36-1.57. Production of sour 
cream, dips, and bottled cream is seasonally active. Demand for condensed 
skim is moderate to lower. As most contract loads are being fulfilled, spot 
interest is slowing as NDM prices adjust lower. Heavy drying schedules are 
being maintained at a few plants as milk volumes fall.  Class III condensed 
prices inched lower reflecting adjustments based on the July Announcement of 
Class and Component Prices.
 
1100C Daniel.Johnson@ams.usda.gov 608.557.7006
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home