MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  February 03, 2016 (REPORT 5)                                                


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 -  2.4145-2.7438                                    

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-.67                                           

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    35     0    40     0     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Northeast milk production is steady to higher. School bottling needs vary 
following last week's snow storm. Manufacturing milk intakes are adequate 
to strong. Milk output in the Mid-Atlantic is holding steady with no 
significant changes being reported. Fluid sales in the aftermath of winter 
storm Jonas increased. Farm-level milk production in the Southeast is 
flat. Bottling remains fairly strong, as limited cutbacks in orders occur. 
Manufacturing milk receipts are light. Heavy rain is causing flooding 
along some interstates, however, no delays with milk distribution are 
being reported. In Florida, milk output continues to climb. Sources noted 
that Class I sales saw some down tick this week.  Milk shipped out of 
state totaled 35 f.o.b. spot loads, 5 less than the previous week.  
According to the DMN National Retail Report-Dairy, for January 29-February 
4, 2016, the U.S. weighted average advertised price for a gallon of milk 
was $2.25, a $1.15 decline compared to a year ago, and down 50 cents from 
last week. Condensed skim spot transactions are light as processors line 
production around contracted accounts. Some brokers report fewer available 
loads shipping into other regions. The DMN January 2016 monthly average 
for Northeast Class II condensed skim was $0.7289, compared to $1.0343 a 
year ago. Cream multiples are steady this week, with a wide spread ranging 
1.10-1.25. The majority of cream transactions tend to occur with multiples 
in the mid-teens to low 20s. Cream is readily available, however, some 
brokers report there are limited takers in the market. Cream cheese plants 
are pulling harder than usual on cream supplies. Butter churns remain 
active throughout the region. The DMN January 2016 monthly average for 
Northeast Class II cream was $2.3894, compared to $1.8316 a year ago. At 
the CME Group, Grade AA butter closed Wednesday at $2.16000, down $0.0400 
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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