MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  September 02, 2015 (REPORT 35)                                              


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 -  2.9670-3.8247                                    

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                180     0   200     0   160     0                                  
SOUTHEAST STATES        50     0    50     0     0     0                                  


Much of the Northeast and Mid-Atlantic is closing out August with a heatwave. 
Heat and humidity are moving throughout the regions as temperatures reach 
into the 90s. Milk production is waning along seasonal trends. Fall school 
year openings continue to strengthen fluid demand and tighten manufacturing 
milk supplies. Most balancing plants are able to cover contracts, having 
limited surplus supplies. Manufacturers expect supplies to increase going 
into the holiday weekend. Milk production in the Southeast is lower as heat 
stress impacts cow comfort. Bottling sales are strong. Milk shipments from 
the Southwest and Mid-East are aiding the region's fluid milk needs. Heavy 
rainfall from tropical storm Erika caused flooding in areas of the Florida. 
Cloud cover has helped cow comfort, but soggy fields advance the current 
decline in milk production. Fluid sales have leveled. Import spot milk 
shipments moved lower, 20 less loads, compared to last week's 200. Cream 
supplies remain tight. Availability is expected to improve sharply as the 
holiday weekend nears. Cream multiples currently range 1.28-1.65. Ice cream 
and mix usage is expected to ease as plants perform maintenance and decrease 
production schedules during the Labor Day holiday weekend. Market 
participants are working on 2016 cream contracts. Wednesday's CME Group daily 
cash closing saw butter close at $2.4200, up $0.1275 from a week ago. 
Condensed skim supplies are limited due to the strong pulls from Class I 
plants. Most supplies are moving through contracts. Spot sales of condensed 
skim are limited, as some plants focus on high heat production and increasing 
inventories. 

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