MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  May 11, 2016 (REPORT 19)                                                    


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 -  2.1452-2.4516                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING 
PLANTS:                
Northeast - Class II - includes monthly formula prices -   .20-.63                        
Northeast - Class III - spot prices -   .15-.55                                           

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   160     0   180     0   105                                  
SOUTHEAST STATES         0     0     0     0     0     4                                   

Milk production in the Northeast has ramped up. Spring flush launched 
a few weeks ago; however, milk output has not been as aggressive as 
expected by some. However, current output is showing assertiveness, 
with significant surges observed across the region. Overall, Class 
sales are steady. A marginal rise and decline is reported for Class II 
and Class III, respectively. Milk supplies into manufacturing are 
growing and slightly burdensome at some plants. Farm milk production 
in the Mid-Atlantic is mostly steady. Sales to bottling are steady to 
lower. Sources report seasonal level volumes of milk supplies 
channeling to manufacturing. The Southeast region's milk production is 
moving lower after hitting peak levels. Class I sales strengthened, 
with bottlers adding to orders. Fewer supporting manufacturing plants 
are operating full this week as milk supplies fall off. Farm-level 
milk output in Florida continues to decline. Milk sales have been down 
with expectations of leveling off with schools soon to dismiss for the 
summer. Export milk shipments totaled 160 loads, down 20 loads from 
last week. According to the DMN National Retail Report-Dairy, for May 
5-12, 2016, the U.S. weighted average advertised price for a gallon of 
milk was $2.29, up 17 cents from last week, but down 33 cents from a 
year ago. Northeast gallons of milk are priced at $2.50, unchanged 
from the last week. The East region is striving to manage heavy 
surpluses of condensed skim. Regional dryers are operating 7 day 
production schedules to process readily available volumes. Also, 
brokers are finding it necessary to heavily discount loads, while 
suffering substantial shipping costs as they trade to distant regions.     

Cream multiples for all Classes range 1.05-1.20. Cream is ample with 
loads readily available from most suppliers. Cream volumes moving 
through contracts are steady. Sources report few loads transferring in 
the Eastern spot market, as most transactions occur to other regions. 
Spot cream is stronger into Class III, cream cheese processing. The 
CME Group, Grade AA butter price closed at $2.0525 on Wednesday, up 
$0.0225 from a week ago. 
DAIRY PRODUCTS:  According to NASS, hard ice cream production in the 
Atlantic region for March 2016 totaled 14.7 million gallons, 1.3% more 
than a year ago and 9.4% more than the previous month. Cumulative 
national production through March totaled 188.0 million pounds, 0.4% 
less than a year ago. U.S. yogurt production for March 2016 totaled 
413.3 million pounds, down 5.3% from a year ago, but up 4.2% from the 
previous month.  


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