MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  September 16, 2015 (REPORT 37)                                              


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 -  3.2581-3.5088                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .79-.83                        
Northeast - Class III - spot prices -   .93-.96                                           

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                120     0   160     0   112     0                                  
SOUTHEAST STATES         0     0     0     0     0     0           

In the Northeast, milk production is steady to slightly lower. School milk 
needs are settling into pattern as bottlers cancel some loads. Some 
contacts report unexpectedly, small declines in milk components levels. 
Manufacturing milk supplies at Mid-Atlantic balancing plants are being 
strained as milk needs from various Classes pull loads. As a result, some 
plants are finding it very demanding to satisfy customer commitments. Milk 
production in the Southeast is decreasing in certain areas of the region, 
while slightly higher in others. Bottled milk needs remain strong. Orders 
are heavy and pressuring handlers in some instances, as milk loads are 
sourced. Florida's milk production continues to decline. The state 
continues to import milk, but volumes declined as Class I sales slowed 
this week. Import milk shipments totaled 120 spot loads this week, 40 less 
truckloads than the previous week. According to the DMN National Retail 
Report-Dairy, for September 11-17, the U.S. weighted average advertised 
price for a gallon of milk was $2.45, a decline of 51 cents from a year 
ago and a decline of 1 cent from last week. The fluid cream market is 
tight in scattered areas of the East. Offerings decreased and demand 
picked up. Cream multiples range 1.30 to 1.40. Contacts are getting less 
cream to move and so-called last minute loads are scare. 
Sour cream orders are down but dip orders are good. Yogurt sales improved.
At the CME Group, Grade AA butter closed at $2.6250 on Wednesday, up 
$0.1525 from last week. The condensed skim market is steady to tight due 
to reduced milk supply. Declines are expected to continue. Spot sales are 
slow as processors focus on commitments, with concerns in filling 
contracts on schedule.   

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-
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