MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  March 09, 2016 (REPORT 10)                                                  


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 -  2.2715-2.4906                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .60-.85                        
Northeast - Class III - spot prices -   .63-.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    90     0    75     0    40                                  
SOUTHEAST STATES         0     0     0     0     0     0                             

Farm milk levels are steady to increasing in the Northeast and Mid-
Atlantic regions. Distribution concerns were eased as some plants that 
were down for maintenance are back on normal schedules. Milk volumes to 
manufacturing are sufficient. Some manufacturers are working to improve 
holiday inventory volumes. Southeast milk output is increasing seasonally. 
A few bottling orders were added this week, but fluid sales are below 
expectations. Manufacturing is full. Florida milk production continues to 
climb. Class I milk sales took a downturn this week. Export milk shipments 
totaled 90 f.o.b. spot loads. According to the DMN National Retail Report-
Dairy, for March 4-10, 2016, the U.S. weighted average advertised price 
for a gallon of milk was $2.38, down 38 cents compared to a year ago and 
down 14 cents from last week. Condensed skim is plentiful in the region, 
with discounted trading taking place as supplies clear to Class II and 
III. Most volumes clear by contracts, as demand from seasonal production 
improves. Movement in the spot market is light. Class IV processing is 
steady to increasing in some channels. The DMN February 2016 monthly 
average price for Northeast Class II condensed skim was $0.7440, compared 
to $1.0295 a year ago. The price for Class III was $0.6575, compared to 
$1.1579 the previous year. Cream multiples for all Classes ranged 1.14-
1.25. Supplies are readily available for most dairy manufacturing needs. 
Cream is supporting active Class II and III production to domestic and 
export markets. The DMN February 2016 monthly average price for Northeast 
Class II cream was $2.5239, compared to $2.0242 year ago. At the CME 
Group, Grade AA butter closed Wednesday at $1.9600, down $0.0200 from a 
week ago.
DAIRY PRODUCTS: According to NASS, hard ice cream production in the 
Atlantic region for January 2016 totaled 11.8 million gallons, 3.0% less 
than a year ago and 7.9% less than December 2015. Cumulative national 
production in January totals 57.0 million pounds, 2.7% more than a year 
ago. U.S. yogurt production for January 2016 totaled 390.4 million pounds, 
up 3.6% from a year ago and up 6.2% from December 2015.  


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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