MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. July 13, 2016 (REPORT 28) 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 - 2.8711-3.1697 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .20-.85 Northeast - Class III - spot prices - .20-.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 90 0 65 0 50 SOUTHEAST STATES 0 0 0 0 0 0 Hot, humid and dry conditions in most areas of the East are prompting declines in farm-level milk production. In the Northeast, milk production is somewhat steady but handlers note heat and humidity levels depress cow comfort and milk production, as volumes are marginally lower. In some areas, drought conditions are beginning to strengthen with the onset of a hot, dry weather patterns. Mid-Atlantic milk output is declining. Manufacturing operations have adequate milk supplies available. Most Class II dairy processors are continuing to run full production schedules. Milk production in the Southeast region has declined significantly due to the extended bouts of hot and humid weather. Bottling plants are adding loads, due to lighter load weights. The frequency of load rejections and temperature issues have increased. Florida milk production continues to rapidly decline. Fluid milk sales are steady to lower. Milk export shipments rose to 90 loads this week, 25 more than the previous week. Seasonal declines in milk production and raised demand for condensed skim in ice cream production are not significantly affecting the ample surplus condensed skim in the region. Dryers are still running at/near capacity as volumes channel to Class IV production. This week, cream demand increased but supplies waned. Spot sales of cream are above contract prices in some instances, an indication that overall cream demand is good. Cream multiples for all classes inched higher this week, 1.25- 1.38. Ice cream, ice cream mix and cream cheese processors are staying busy while pulling the bulk of the cream supply. According to the DMN National Retail Report-Dairy, for July 8-14, the U.S. weighted average advertised price for a gallon of milk was $2.32, a $0.04 increase from last week, but a $0.49 decrease compared to last year. The weighted average regional price for a gallon of milk in the Northeast was $2.17, down 33 cents from last week. Wednesday's CME Group cash trading saw Grade AA butter close at $2.2725, down $0.0100, from a week ago. DAIRY PRODUCTS: According to NASS, hard ice cream production in the Atlantic region for May 2016 totaled 15.5 million gallons, 3.6% more than a year ago and 2.60% more than the previous month. Cumulative national production through May totals 331.8 million pounds, 2.7% more than a year ago. U.S. yogurt production for May 2016 totaled 380.2 million pounds, down 4.2% from a year ago and down 3.0% 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