MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  September 30, 2015 (REPORT 39)                                              

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 -  3.8603-4.1276                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .87-.90                        
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                220     0   120     0   120     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  


Potentially dangerous and damaging rainfall is occurring in Florida and 
expected to continue up the East coast into New England into early next 
week. Conditions, which include flooding and road closures, are likely to 
have an impact on milk market supply/demand, and distribution channels.                                                                                         
In the Northeast, producers' milk outputs are steady to slightly higher. 
Manufacturing milk supplies are adequate for contractual needs. A number 
of dairy operations are running 6-7 day schedules. Bottling orders are 
steady. Cooler conditions improved cow comfort and overall milk production 
in the Mid-Atlantic region. Butterfat and protein levels are rebounding 
but not as high as some expected. Bottling orders picked up slightly.
The Southeast's milk production trickled lower in some areas but increased 
in other areas of the region. Class I demand is stronger due to the 
storm's effect. Milk loads into manufacturing are very limited. Florida's 
milk production indicates signs of bottoming out. Fluid milk sales are up, 
as storm forecasts trigger a rise in bottling orders. Milk imports 
increased, as reports indicate 220 spot shipments into the state.  
According to the DMN National Retail Report-Dairy, for September 25-
October 1, the U.S. weighted average advertised price for a gallon of milk 
was $2.54, a decrease of 39 cents from a year ago, and a decrease of 15 
cents from last week. Cream multiples range 1.30 to 1.39. Overall, cream 
supplies are balanced with good demand. Some tightness is reported, which 
usually depend on the time of week spot purchases are made. With the 
decline in ice cream usage, other Class II cream demand is building. Cream 
cheese production has increased, with dips, bottled cream, and whipping 
cream trending similarly, as processors prepare for yearend holiday 
demand. Wednesday's CME Group cash trading saw Grade AA butter close at 
$2.5100, down $0.5150 from a week ago. This week, CME butter prices have 
plummeted $0.6250, through Wednesday.  The condensed skim market is 
showing very little change from last week. Contract sales make up the bulk 
of shipments. Spot offering are scarce. Supplies are adequate to cover 
Class II and Class III demand.

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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