MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. March 23, 2016 (REPORT 12) 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 - 1.9972-2.3656 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 0 145 0 120 0 104 SOUTHEAST STATES 0 0 0 0 0 0 Milk production in the Northeast and Mid-Atlantic regions is gradually increasing at seasonal levels. Manufacturing milk supplies are heavy as Class I pipelines reduce orders due to school closings. The Southeast region's milk production is seeing steady growth in output. The volume of milk to bottling is currently temperate. Multiple processing plants are running full capacity due to increasing levels of milk intakes. Florida's milk production continues to increase. Milk output in the state is 1.8% higher than a year ago. Bottling sales moved lower with spring break in full swing. As a result, surplus milk volumes are higher than the previous week. Exported milk shipments totaled 145 f.o.b. spot loads this week. According to the DMN National Retail Report-Dairy, for March 18-24, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.99, up $1.00 from both last week and a year ago. Condensed skim supplies and demand is at seasonal levels. Heavy weekly surpluses are channeling to NDM production. Contracted condensed skim volumes are moving well to Class II and III needs. Processors are taking extra loads at discounts. Cream is readily available. Multiples range 1.03-1.22 and vary based on class usage and basing points. Demand for cream is fair to good across the different Classes of dairy products. Suppliers are receiving calls for summer cream. Ice cream interest is stronger and bottled cream production is increasing along seasonal patterns. At the CME Group, Grade AA butter closed Wednesday at $1.9200, down $0.0200 from a week ago. MILK PRODUCTION: According to NASS, milk production in the 23 major states during February 2016 totaled 15.8 billion pounds, up 4.6% from one year ago. Eastern states' milk production are as follows: February 2016 Milk Production, (USDA-NASS) (Million Lb.)* % Change From 1 Year Ago Florida 225 + 1.8 New York 1,144 + 8.3 Pennsylvania 869 + 3.5 Vermont 216 + 5.9 Virginia 143 + 2.1 *Unadjusted 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- home