MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  November 10, 2015 (REPORT 45)                                               

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 -  3.6998-3.8990                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .90-1.00                       
Northeast - Class III - spot prices -   .76-.79                                           

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                 40     0    60     0    58     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Milk production in the Northeast is uneven. Parts of the region linger 
at/near seasonally low milk output, with slight upticks in others. Orders 
from bottlers are steady. Class II usage is active, as some manufacturers 
process committed shipments as the Thanksgiving holiday fast approaches.   
Mid-Atlantic milk production is increasing incrementally. Manufacturers' 
milk supplies are mostly balanced. Balancing plant operators, who were 
recently concerned by lower milk intakes, are noting marginal increases in 
milk receipts. Cooler temperatures in the Southeast will likely advance 
milk production.  Otherwise, output is steady at seasonal levels. Fluid 
demand continues to pull strongly on available milk, curbing regional milk 
intakes. Florida's dairy herds, in response to record high temperatures 
for this time of the year, are producing less milk. With increases in the 
seasonal population, Class I is seeing a slight uptick in sales. Milk 
import spot shipments continue to fall off, with 40 loads moving into the 
state this week, compared to 60 the previous week. According to the DMN 
National Retail Report-Dairy, from November 6-12, 2015, the U.S. weighted 
average advertised price for a gallon of milk was $2.22, a drop of $1.56 
from a year ago, but an increase of 8 cents from last week. Condensed skim 
interest is steady. Supplies are adequate for contractual needs. Producers 
and end-users are negotiating 2016 condensed skim contracts. Spot sales 
are fairly quiet. Class III skim milk price is lower, after the release of 
the Announcement of Class and Component Prices. Cream supplies are tight 
throughout the East, and spot loads are hard to find. This week cream 
cheese interest grew, bringing about heavier cream use at some plants. 
Cream multiples adjusted marginally higher, 1.30-1.37. The cream supply 
situation will likely absorb the effects of the closing of a cream based 
operation in the Northeast region. At the CME Group, Grade AA butter 
closed at $2.8850 on Tuesday, $0.0600 higher than the previous week.


1300C daniel.johnson@ams.usda.gov 608.557.7006
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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