MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. December 02, 2015 (REPORT 48) 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 - 3.7120-3.9150 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .87-.93 Northeast - Class III - spot prices - .73-.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 20 0 170 0 90 0 SOUTHEAST STATES 0 0 0 0 0 0 Northeast and Mid-Atlantic farm level milk production is increasing along seasonal trends. Milk pulls from Class I and Class II have strengthened, with schools resuming and heighted manufacturers' production schedules. Southeast milk production is steady. Weather issues have affected milk distribution efforts, limiting handlers' milk intakes. Fluid sales are stronger as bottlers add to orders. Milk production in Florida is climbing at a steady rate. Sales are down compared to last week, but will likely increase moving to next week. Import milk shipments dropped significantly this week, as 20 loads moved into the state to end the import milk season. According to the DMN National Retail Report-Dairy, from November 27- December 3, 2015, the U.S. weighted average advertised price for a gallon of milk was $2.69, down 89 cents from a year ago, and dipping 3 cents from last week. The condensed skim market continues to focus on filling contractual obligations. Excess loads traded at a discount in a few channels. With rising holiday production and cheese demand, Class II and Class III condensed skim interest is improving. Cream is readily available in the East. Some manufacturers managed heavier than expected supplies by moving surplus cream into other regions. Over the course of the holiday weekend, reports noted cream multiples in the low teens. Currently, cream multiples range 1.28-1.35. A few plants are running full schedules to handle exceptionally strong cream cheese sales. At the CME Group, Grade AA butter closed Wednesday at $2.9050, up $0.0050 from last Wednesday. Dairy Market News Reporting Change Notice Upon the conclusion of the October 2015 industry comment period and a review of industry responses, Dairy Market News (DMN) is updating the Dairy Market News Working Guidelines, effective Report 1, January 2016. The updates will allow DMN market reports to additionally include information and sales prices reported by individuals and firms functioning as marketing agents selling on the behalf of dairy product manufacturers. The Working Guidelines updates are intended to capture more information on pricing and market conditions and reflect the evolution of the marketing of dairy products. Currently, market pricing information is collected for first sale, f.o.b. producers' plants or warehouses. Link to current and updated DMN working guidelines: http://www.ams.usda.gov/market-news/individual-dairy-market-news-commodity-r eports December 1, 2015 1300CT 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- home