MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. January 27, 2016 (REPORT 4) 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 - 2.3582-2.6798 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .68-.83 Northeast - Class III - spot prices - .49-.59 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 40 0 25 0 0 SOUTHEAST STATES 0 0 0 0 0 0 As it stands, areas of the Eastern region are slowly recovering from the impact of the snow storm Jonas. The storm dropped 24-40 inches of snow in areas from the Gulf Coast to New England. For some haulers it was the worst they'd ever seen. Some milk distribution routes were so treacherous that driving was banned. The biggest challenge was closure of turnpikes and bridges that limited ability to distribute to customers located within cities. There are reports of hauler accidents but no spilled milk involved. Missed pickups by haulers are being evaluated as milk handlers look for things to soon return to normal. In the Northeast and Mid- Atlantic regions, milk production is up slightly. Bottling orders are mixed following the heavy demand prior to the storm. Deliveries that were delayed over the weekend are being filled. Otherwise, bottling cuts have occurred this week, due to limited delivery routes caused by snow storm clean-up activity. Balancing milk supplies are moderate to heavy. The Southeast's milk output is mostly steady. Some handlers are still digging out from the snow storm. Class I add-ons are being cut as shipments to some bottling facilities remain difficult. Thus, milk loads are being shifted to auxiliary manufacturing outlets. In Florida, milk production is moderately increasing. Sales are currently flat, but sources expect to see a slight uptick during next week. Export shipments of milk moved higher. Sources report 40 f.o.b. spot loads moving out of the state this week, compared to 25 loads last week. According to the DMN National Retail Report-Dairy, for January 22-28, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.75, a 65 cent decline compared to a year ago, but up 13 cents from last week. The condensed skim market is mixed. Some sources report good demand, as active movement occurs. In turn, some brokers are holding out for buyers that provide the best freight rates. This week, due to the impact of the snow storm, multiples moved lower at the bottom of range, while moving higher at the top of the range. East cream multiples range 1.10-1.25. Churning is heavy and butter makers are being offered a lot of cream. At the CME Group, Grade AA butter closed Wednesday at $2.2000, up $0.0675 from a week ago. MILK PRODUCTION: According to NASS, milk production in the 23 major states during December 2015 totaled 16.4 billion pounds, up 0.7% from one year ago. Eastern states' milk production are as follows: December 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 211 + 1.4 New York 1,203 + 3.5 Pennsylvania 904 NC Vermont 226 + 0.4 Virginia 147 - 3.3 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