MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. July 6, 2016 (REPORT 27) 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 - 2.8008-3.1509 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .15-.85 Northeast - Class III - spot prices - .10-.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 65 35 0 0 0 East balancing plants were busy over the holiday weekend working through additional loads of milk. A few contacts report an incoming supply of milk larger than they can handle. Several Northeast milk marketers feel the climb in milk production has leveled off, and supply is beginning to balance out. Industry contacts report dry, hot conditions in the Northeast that they anticipate will have an effect on milk production in the upcoming weeks. However, with several large herd expansions in the area, some market participants do not believe the drop in milk production will be as significant as in previous years. Mid-Atlantic milk production is steady to slightly lower this week, as the area faces hot, humid conditions. Cow comfort is being tested in the Southeast. Industry contacts report temperatures reaching seasonal highs this week. Milk production is seasonally declining in the area. Florida farm level milk production continues to fall. However, loads out of Florida grew, totaling 65 f.o.b. spot loads. This may be partially attributed to the holiday weekend. Condensed skim is plentiful in the Eastern region. There are reports of discarding loads of milk that were unable to be processed in a timely fashion over the weekend. Discounts under class pricing continue to be offered on loads in an effort to manage the abundant supply of condensed skim. Ice cream manufacturers are reportedly requesting additional loads of condensed skim outside of contracts. Cream availability did increase over the weekend, and spot loads moved at multiples on the lower end of the range. However, market participants feel the cream supply is tightening following the long weekend. Several processors report being comfortable with current cream supply and demand. Cream multiples for all classes holds steady this week, 1.20-1.35. A few ice cream and frozen dessert manufacturers shut down for the holiday, but returned to full production schedules Tuesday. An overcast holiday weekend reportedly took some of the spark out of what is typically the peak of ice cream sales, although industry contacts still feel sales are strong. According to the DMN National Retail Report-Dairy, for July 1-7, the U.S. weighted average advertised price for a gallon of milk was $2.28, a $0.19 increase compared to last year and an $0.08 increase from last week. The weighted average regional price for a gallon of milk in the Northeast was $2.50. The DMN June monthly average for Northeast Class II cream was $2.7937, compared to $2.4973 a year ago. The DMN June monthly average for Northeast Class II condensed skim was $0.4966, compared to $0.7943 a year ago. Wednesday's CME Group cash trading saw Grade AA butter close at $2.2825, down $0.0475, from a week ago. 1300CT Amy.L.Schmitz@ams.usda.gov 608.557.7004 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