MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. May 25, 2016 (REPORT 21) 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 - 2.1541-2.5028 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .30-.65 Northeast - Class III - spot prices - .25-.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 0 190 0 160 0 70 SOUTHEAST STATES 0 0 0 0 0 2 Northeast and Mid-Atlantic farm milk output is on the rise. However, demand from all Classes is plummeting ahead of the Memorial Day holiday. The end of spring term at college campuses reduced bottling orders significantly. Manufacturing milk supplies are heavy. Plant managers anticipate capacity level intakes over the course of the holiday period. Southeast milk production is steady on the down side of the seasonal peak. Fluid milk demand driven by foodservice needs declined due to school closings and the forthcoming holiday. Manufacturing milk supplies will be heavy into the weekend with all available auxiliary manufacturing facilities being utilized to handle additional milk volumes. Florida's farm milk production continues to decline. Also, fluid milk sales decreased this week with schools/universities closing for summer break. This week, export milk shipments for the state totaled 190 f.o.b. spot loads, 30 above the previous week. According to the DMN National Retail Report-Dairy, for May 20-26, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.34, up 7 cents from last week, but down 39 cents from a year ago. Northeast gallons of milk are priced at $2.43, down 8 cents from the last week. Condensed skim supplies are steady to higher in Eastern markets. Plant managers anticipate supplies will increase into balancing during the weekend. Dryers will likely run at capacity. Interest improved among some Class II and III producers, as they opt for price advantages over nonfat dry milk. With the recent USDA AMS announcement of Advanced Prices, the Class II Nonfat Solids price moved to $0.6511, and could increase the price paid for condensed skim loads, when compared to last month. Cream is still plentiful in the East. Local spot transactions improved with buyer interest. However, surplus shipments primarily to the Mid-west continue, and support the lower end multiples. The full range of cream multiples for all Classes, 1.05-1.22, moved incrementally higher at the top of the range. The market notes improved demand from the ice cream mix segment, as ice cream plants prepare to increase production following the Memorial Day holiday. MILK PRODUCTION: According to NASS, milk production in the 23 major states during April 2016 totaled 16.8 billion pounds, up 1.2% from one year ago. Eastern states' milk production are as follows: April 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 230 - 3.0 New York 1,218 + 5.3 Pennsylvania 930 + 0.5 Vermont 228 + 2.7 Virginia 150 - 3.2 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