MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  March 16, 2016 (REPORT 11)                                                  


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 -  2.3376-2.4763                                    

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-.78                                           

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   120     0    90     0    80                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Northeast milk production is active throughout the region as increases 
occur along the seasonal pattern. Some milk handlers indicated milk sales 
across classes are steady. Manufacturing milk supplies are heavier but 
manageable. March milk production levels are up in the Mid-Atlantic. 
Balancing plant managers are comfortable with current milk intakes, while 
looking ahead to imminent upsurges in milk supplies. Class I milk sales 
are stable. Surplus milk is moving at substantial discounts in some market 
channels. Milk production is climbing in the Southeast. March is typically 
the month milk output in area states gain momentum toward the peak. 
Participants in the market indicate Southeastern manufacturing plants are 
operating at capacity levels. Sales to bottling are unchanged. Florida 
milk production is surging. Sources expect peak levels within the next 2 
to 3 weeks. Fluid sales are sluggish, as spring break has started. With 
one holiday coinciding with spring break this year, surplus milk loads 
will likely increase during that period. This week, export milk shipments 
totaled 120 f.o.b. spot loads. Temperatures in the state are warming with 
highs around 89 and lows in the 70s. Weekend projections have temperatures 
in the 70s, with rain. According to the DMN National Retail Report-Dairy, 
for March 11-17, 2016, the U.S. weighted average advertised price for a 
gallon of milk was $2.54, down 70 cents compared to a year ago, but up 16 
cents from last week. The condensed skim market is heavy with supplies. 
Contract sales are clearing, but spot transactions are slow, with lower 
priced spot offerings capturing some interest. Heavy loads are moving to 
dryer operations. The fluid cream market is still weak. Sources hinted 
that prices are usually higher at this point in the season. Nonetheless, 
based on market feedback, multiples advanced at the bottom, ranging 1.18-
1.25, this week. Spot transactions are intermittent, as cream loads mainly 
move through contracts. Class II and III usage is rising. Churning is 
strong. At the CME Group, Grade AA butter closed Wednesday at $1.9400, 
down $0.0200 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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