MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  March 30, 2016 (REPORT 13)                                                  


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 -  2.1313-2.2281                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .15-.65                        
Northeast - Class III - spot prices -   .15-.63                                           

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   170     0   145     0   140                                  
SOUTHEAST STATES         0     0     0     0     0     0        

Class I demand has declined in all areas as many schools and colleges are 
on spring break. Mild spring weather has led to early stages of the spring 
flush in most areas of the East, with the exception of the upper Northeast 
and those areas at higher elevations. The Mid-Atlantic region is enjoying 
mild weather conditions, encouraging greener pastures and milk production 
increases. Processing plants in the Southeast are running full schedules 
to assist with the increased milk supplies. Milk production in Florida is 
ascending to the peak. Sales to bottling are lower than anticipated. 
Market sources are not expecting an increase in orders before fall. Milk 
shipments continue to climb as f.o.b. milk loads for export totaled 170 
this week, 25 more than the previous week. According to the DMN National 
Retail Report-Dairy, for March 25-31, 2016, the U.S. weighted average 
advertised price for a gallon of milk was $2.58, up 40 cents from last 
week, but down 30 cents from a year ago. Condensed skim supplies continue 
to strengthen as heavy volumes clear to Class IV production. Demand for 
skim solids remains weak. Trading on the spot market is being boosted by 
suppliers offering discounted loads to other regions in various Classes in 
order to lighten increasing milk volumes. With last Wednesday's 
announcement of the Advanced Prices, the Class II Nonfat Solids price 
declined $0.0178, compared to the previous month, reducing prices paid for 
condensed skim milk spot loads. Cream supplies remain strong, as holiday 
pulls are reasonably reduced. The level of demand depends very much on the  
day of the week and source of the need. Cream demand from cream cheese and 
ice cream mix manufacturers represent the strongest domestic pulls. Cream 
multiples have narrowed this post-holiday week, with multiples at 1.10-
1.15 showing the most spot movement. At the CME Group, Grade AA butter 
closed Wednesday at $1.9550, up $0.0350 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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