MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  May 18, 2016 (REPORT 20)                                                    

**Resent to Update Milk Shipments


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 -  2.1499-2.4570                                    

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   160     0   120                                  
SOUTHEAST STATES         0     0     0     0     0    10                                  

Northeast milk production volumes are heavy and gaining traction as 
the region nears seasonal peak. Class I demand shows some decline as 
universities move toward completing the spring term. Farm milk 
production in the Mid-Atlantic region is steadily increasing around 
the spring flush. Class I demand is steady. Manufacturing milk 
supplies remain heavy with most plants operating full. Milk handlers 
in the Southeast expressed that milk production volumes are tapering. 
Bottling sales are flat. Auxiliary manufacturing plants are receiving 
moderate to heavy milk supplies. Florida's milk production showed a 
slight uptick. Fluctuations in output are expected the next few weeks 
as temperatures loom in the high 80s to low 90s, with rising humidity. 
Bottling sales are down, with more declines anticipated as area 
schools and colleges dismiss over the next 3 weeks. **The state's 
export milk shipments in the f.o.b. spot market are 160 loads this 
week, unchanged from last week. According to the DMN National Retail 
Report-Dairy, for May 13-19, 2016, the U.S. weighted average 
advertised price for a gallon of milk was $2.27, down 2 cents from 
last week and down 45 cents from a year ago. Northeast gallons of milk 
are priced at $2.51, up 1 cent from the last week. Heavily discounted 
transactions continue to occur when trading Eastern condensed skim in 
f.o.b. spot markets. Sales are usually to all Classes and primarily 
out of region. The bulk of condensed skim supplies are clearing to 
Class IV processing. This week's cream market saw East multiples 
attempt to edge higher, but without much traction. As a result, cream 
multiples for all Classes range 1.05-1.20, unchanged from the previous 
week. In general, the market is seeing a repeat of last week, with 
cream supplies readily available. Yogurt sales are good and prompting 
active production in the Northeast. Cream into cream cheese production 
is steady as plants maintain 7 day work schedules. The CME Group, 
Grade AA butter price closed at $2.0525 on Wednesday, unchanged 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-home