MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. April 27, 2016 (REPORT 17) 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 - 2.1525-2.4190 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .20-.78 Northeast - Class III - spot prices - .20-.73 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 0 180 0 130 0 80 SOUTHEAST STATES 0 0 0 0 0 0 Milk production is increasing as the spring flush continues to strengthen in most areas of the East. In the Northeast and Mid- Atlantic regions, milk output is adding to heavy milk supplies. Southeast milk production also notes increases, with milk volumes closer to the peak. Auxiliary cheese plants are aiding with the increased volumes. In Florida, temperatures have been unseasonably warm with highs in the 80s to low 90s, with very little rain. Milk production made a slight climb. Sources expect some fluctuation in output before a downward trend develops. Surprisingly, Class I sales ticked up a notch, but are not expected to hold. Spot export milk totaled 180 truckloads this week. According to the DMN National Retail Report-Dairy, for April 22-28, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.35, down 6 cents from last week and down 56 cents from a year ago. Prices for Northeast gallons of milk were $1.99, down $1.01 from last week. Condensed skim supplies exceed demand. Some brokers are experiencing difficulty clearing loads. Condensed skim volumes clearing to Class IV production are substantial. Many manufacturers are running 7 day dryer schedules. Manufacturing cream supplies are readily available. Cream continues to see loads exchanged over a wide range of multiples, with the majority of trades occurring in the low to upper teens. Cream multiples for all Classes range 1.05-1.18. The CME Group, Grade AA butter price closed at $2.0400 on Wednesday, unchanged from a week ago. MILK PRODUCTION: According to NASS, milk production in the 23 major states during March 2016 totaled 17.2 billion pounds, up 1.8% from one year ago. Eastern states' milk production are as follows: March 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 231 - 5.7 New York 1,240 + 5.5 Pennsylvania 954 + 1.7 Vermont 233 + 2.6 Virginia 154 - 0.6 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