MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  December 16, 2015 (REPORT 50)                                               


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 -  2.6060-3.2575                                    

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 -   .63-.66                                           

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                  0    10     0    10     0     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

This week in the East, area balancing plants note steady to lower milk 
intakes. That will probably change next week as schools break for the 
yearend holiday into the New Year. The lapse in school milk needs will 
leave balancing plants with significantly higher milk volumes to process. 
Milk production varies throughout the region. In the Northeast, farm milk 
production is marginally increasing. Mid-Atlantic milk production is 
steady. Southeast milk production is balanced, as bottlers added to orders 
in some instances, while others cut orders with declines in Class I 
demand. Florida farm milk output continues to trend incrementally higher. 
Sales to Class I remain active. Increased migration by seasonal residents 
into the state is not expected to heavily impact demand. Export f.o.b spot 
milk shipments totaled 10 loads this week, unchanged from last week. 
According to the DMN National Retail Report-Dairy, from December 11-17, 
2015, the U.S. weighted average advertised price for a gallon of milk was 
$2.64, down 76 cents from a year ago, but up 21 cents from last week. 
Condensed skim processors are generally content with contracted volumes.
This has resulted in minimal spot market activity. The exception is in the 
Northeast, where ice cream production is pulling marginally on supplies. 
Cream multiples ranged 1.00-1.25. Spot market activity is primarily 
supplying seasonal production of egg nog and cream cheese. At the CME 
Group, Grade AA butter closed Wednesday at $2.0775, down $0.7125 from last 
Wednesday. 

1315CT 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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