MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  February 10, 2016 (REPORT 6)                                                


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 -  2.4673-2.6819                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .55-.86                        
Northeast - Class III - spot prices -   .55-.75                                           

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    30     0    35     0    60                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Milk production in the Northeast is steady. A second winter storm in four 
days hit New England on Monday, and most schools were closed across the 
region. Travel was slow, however, no delays of milk pickups or deliveries 
were reported. Class I sales dipped slightly. Manufacturing supplies are 
slightly higher. Milk production in the Mid-Atlantic is mostly flat. Class 
I sales are showing a slight uptick, while Class II and III sales are 
level. Milk output is rising in the Southeast. Milk handlers report that 
bottlers are applying significant cuts to orders this week. As a result, 
surplus milk is being shipped to a few supporting cheese plants as 
cancellations of loads from the Mid-east occur. In Florida, temperatures 
are abnormally cool. Milk production is reported flat for most of the 
area. Sources note that bottling sales are down. Milk export shipments 
total 30 f.o.b. spot loads this week. According to the DMN National Retail 
Report-Dairy, for February 5-11, 2016, the U.S. weighted average 
advertised price for a gallon of milk was $2.31, a 68 cents decline 
compared to a year ago, but up 6 cents from last week. Condensed skim 
production is steady. With the height of the ice cream production season a 
few weeks away, Class II demand is good. Class IV drying is also active. 
However, the East regional supplies are above current demand, as 
significant loads are being shipped to other regions. Cream quantities are 
available, though somewhat tighter than the previous week. Coming into the 
week, multiples were much stronger, but demand took a dive by mid-week 
causing a slight drop. The range for most trades occur at 1.15-1.25 
multiples, slightly higher on the bottom compared to last week. Cream 
cheese production is reported steady to lower for the week. Cream supplies 
clearing to ice cream are fairly active in the Northeast. At the CME 
Group, Grade AA butter closed Wednesday at $2.1250, down $0.0350 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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