MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  February 17, 2016 (REPORT 7)                                                


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 -  2.4507-2.6638                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .65-.86                        
Northeast - Class III - spot prices -   .65-.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   100     0    30     0    24                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Over the past weekend into this week, the Northeast region experienced 
record cold conditions, snow, and freezing rain. On Monday, settings were 
similar in the Mid-Atlantic and Southeast, as cold temperatures brought 
snow, rain, and accumulations of ice. Milk distribution saw interruptions 
of bottling and manufacturing pickups and deliveries. Regionally, milk 
production in the Northeast and Mid-Atlantic are seeing year over year 
increases. Manufacturers report ample, but not burdensome, milk volumes 
moving into production. Bottling sales increased for the week, but are 
expected to level off in both regions. Milk production volumes are steady 
in the Southeast. Only a few shipments cleared into manufacturing as the 
region saw an increase in Class I sales, prompted by a run on retail ahead 
of the region's wintery forecast. Sources report an overall increase in 
Florida milk production. Bottling orders are somewhat lighter to static, 
with cancellations being reported. Above average rainfall equates to 
reductions in tanker loads in some areas, as conditions distress cow 
comfort. The state exported 100 spot loads. According to the DMN National 
Retail Report-Dairy, for February 12-18, 2016, the U.S. weighted average 
advertised price for a gallon of milk was $2.33, a $1.11 decrease compared 
to a year ago, but up 2 cents from last week. Demand for condensed skim is 
slow to moderate, as existing supplies exceed demand. Subsequent to 
contractual deliveries, heavy volumes of condensed skim are primarily 
clearing to NDM production. Some brokers are finding it challenging to 
move condensed skim at an adequate margin when clearing loads to other 
regions. Cream multiples ranged 1.15-1.25. Most f.o.b. cream transactions 
were in the mid to upper teens. Supplies are plentiful. Loads that some 
consider burdensome, are being shopped in other regions. Some processors 
with surplus cream are opting to make butter rather than sell cream at low 
multiples. Buyer interest is growing to secure summer cream. At the CME 
Group, Grade AA butter closed Wednesday at $2.0425, down $0.0825 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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