MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. July 20, 2016 (REPORT 29) 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 - 2.8550-3.0834 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 50 0 90 0 0 SOUTHEAST STATES 0 0 0 0 0 0 Manufacturing milk supplies in both the Northeast and Mid-Atlantic regions are steady to heavy. Declines in Class I demand increased milk to manufacturing plants and have more than offset seasonal declines in milk production. Seasonally warm weather covers both regions, while dairy farms across the Northeast are challenged by lack of rain and drought conditions. Hot weather in the Southeast continues to prompt declines in milk production. The FMMO reports that Class I utilization was 64.78% in June 2016, declining 6.64% compared to the previous year. With weak Class I demand, milk loads are shifting from bottling to auxiliary manufacturing plants. Industry sources report a slight reduction in load rejections compared to the previous week. In Florida milk production is steady to lower as the state confronts recurring rain, with hot and humid conditions. The FMMO reports that Class I utilization was 83.56% in June 2016, a decrease of 0.40% compared to the previous year. Sales are currently steady to lower. Demand should increase the first week of August with the start of school. Spot milk shipments out of the area were 50 loads, down 40 loads from last week. Contacts expect import milk shipments to begin in the next 30 days. Condensed skim is readily available with additional spot load purchase being made by Class II and III manufacturers. Class IV dryers continue to run heavy to manage the ample supplies of condensed skim. Cream supplies in the East are adequate. However, decreasing milk production and lower butterfat levels trigged marginal declines in availability. Some churn operators continue to acquire surplus loads as others decrease their external intakes. Interest from ice cream and continues to be very active. Multiples for all Classes closely matche last week and range 1.25-1.35. According to the DMN National Retail Report- Dairy, for July 15-21, the U.S. weighted average advertised price for a gallon of milk was $2.72, a $0.40 increase from last week, but a 26 drop compared to last year. The weighted average regional price for a gallon of milk in the Northeast was $3.69, up $1.52 from the previous week. Wednesday's CME Group cash trading saw Grade AA butter close at $2.2925, up $0.0200, 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