MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  February 24, 2016 (REPORT 8)                                                


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 -  2.2557-2.5838                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .67-.85                        
Northeast - Class III - spot prices -   .65-.75                                           

The viewpoint of some market participants is that Eastern manufactures are 
better handling heavy milk intakes. This view alludes to manufacturing    
being prepared to handle those volumes. With reported growth in milk 
output and inflows of heavy supplies into manufacturing this week, 
processors in some instances were noted operating at/near full. However, 
with most areas of milk production in the region merely at the opening 
stage of the spring flush, to others the real test of preparedness is 
still weeks away. Regionally, Northeast and Mid-Atlantic farm-level milk 
producers report seasonal increases in milk volumes. Manufacturing milk 
supplies are adequate for meeting production needs. Area school closings 
in the Northeast contribute to surplus milk flows into manufacturing. 
Class I demand is lighter. Southeast milk output is moving up. Sources are 
surprised by the quantity of cuts in bottling orders. As a result, Class 
III facilities are seeing notable increases in milk receipts. Florida's 
milk production continues to have fairly significant rises. Class I sales 
are flat, with little expectation of increasing beyond current levels in 
the short-term. Approximately 100 f.o.b. export milk shipments moved out 
of state this week. According to the DMN National Retail Report-Dairy, for 
February 19-25, 2016, the U.S. weighted average advertised price for a 
gallon of milk was $2.37, down 34 cents compared to a year ago, but up 4 
cents from last week. Condensed skim supplies are heavy, with light to 
moderate interest aside from filling customer contractual needs. Condensed 
skim supplies for Class IV production remain strong. Cream multiples range 
1.10-1.26. Eastern level of cream availability is surprising to some. 
Indications are the current supply is the result of plant maintenance 
activity and pull back from ice cream manufacturing. Loads are being 
turned away, in slow trading. The market expects improved interest from 
Class II and III for holiday production. At the CME Group, Grade AA butter 
closed Wednesday at $2.0000, down $0.0425 from a week ago.
MILK PRODUCTION:  According to NASS, milk production in the 23 major 
states during January 2016 totaled 16.6 billion pounds, up 0.3% from one 
year ago.  Eastern states' milk production are as follows:


January 2016 Milk Production, (USDA-NASS


           (Million Lb.)      % Change From
                                 1 Year Ago
  
Florida            236            + 1.3
New York         1,221            + 4.1 	 
Pennsylvania       920            + 0.3
Vermont            230            + 1.8
Virginia           148            - 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-
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