MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  January 20, 2016 (REPORT 3)                                                 


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 -  2.4740-2.6008                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .70-.90                        
Northeast - Class III - spot prices -   .44-.64                                           

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    25     0     0   125     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

The snow storm expected to move up the coast and add to the region's 
current wintery conditions will likely force a solid run on milk at retail 
outlets. The region, in general, is seeing robust demand from bottling 
facilities, as retail sales are strong. Northeast and Mid-Atlantic milk 
production is steady to increasing. Production has eased significantly at 
some balancing plants as milk supplies detour to Class I production. 
Manufacturers expect further disruptions, due to milk delays, as wintery 
conditions progress. Milk production in the Southeast is increasing, 
albeit supplies are circumventing manufacturing with strong pulls from 
Class I processors. To help meet current demand, milk supplies are being 
bought in from other outlets. Handlers expect aggressive growth in 
Florida's milk production over the next few weeks, as current daytime 
temperatures settle in the 50s. Sales to Class I are steady with some 
decline from last week. An anticipated snow storm is pressuring bottling. 
Milk exports totaled 25 loads in the f.o.b spot market this week. 
According to the DMN National Retail Report-Dairy, for January 15-21, 
2016, the U.S. weighted average advertised price for a gallon of milk was 
$2.62, a 30 cent decline compared to a year ago, but up 8 cents from last 
week. Condensed skim supplies remain fairly heavy. Class II demand is 
showing some weakness as most manufacturers match production with 
contracted supplies. Heavy condensed skim volumes continue to clear to 
Class IV production. Cream multiples this week ranged 1.17-1.23. Cream is 
moderate to plentiful as current market conditions determine available 
levels. Along with increasing milk supplies, contributing to overall 
availability is heavy volumes of standardized cream from bottling. At the 
CME Group, Grade AA butter closed Wednesday at $2.1325, up $0.0325 from a 
week ago.


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-
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