MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. August 26, 2015 (REPORT 34) 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 - 3.0586-3.7333 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .65-.83 Northeast - Class III - spot prices - .70-1.18 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 200 0 60 0 120 0 SOUTHEAST STATES 50 0 50 0 0 0 Milk production in the Northeast and Mid-Atlantic regions is moving lower. Sales to Class I are increasing as bottlers replenish school pipelines. Milk supplies for Class II, III, and IV usage are lower for most dairy operations. Southeast milk production rose slightly as somewhat cooler temperatures enhanced cow comfort. Manufacturing milk receipts continue to decline due to increased Class I school orders. Florida's farm-level milk production is continuing to fall. Sales are up but leveling off. There is a hurricane that is threating that could disrupt distribution. Import spot shipments are 200 loads this week. Cream multiples ranged 1.36-1.66, with the rBST free loads at the high end of the range. Supplies remain tight, with good demand. Ice cream processing continues to pull on the bulk of cream supplies. With cream cheese interest expected to build during fall seasonal demand, that will likely change. Some ice cream manufacturers credit unusually strong and steady orders to the supply void left by a previous regional ice cream processor. Wednesday's CME Group daily cash closing saw butter close at $2.2925, gaining $0.0225 from a week ago. Manufacturers note declines in condensed skim supplies due to Class I pulls. Available non-contractual loads are diminishing significantly. Condensed skim demand is good, with active ice cream, cream cheese, and yogurt production. According to the DMN National Retail Report-Dairy, for August 21-27, the U.S. weighted average advertised price for a gallon of milk was $2.57, down 52 cents from last year, but up 53 cents compared to last week. MILK PRODUCTION: According to NASS, milk production in the 23 major states during July 2015 totaled 16.6 billion pounds, up 1.2% from one year ago. Eastern states' milk production is as follows: July 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 214 + 1.4 New York 1,219 + 3.2 Pennsylvania 917 + 2.3 Vermont 230 + 0.9 Virginia 148 + 0.7 1300C 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