MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. July 27, 2016 (REPORT 30) 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 - 2.9363-3.0969 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .45-.90 Northeast - Class III - spot prices - .43-.65 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 13 0 50 20 0 SOUTHEAST STATES 0 0 0 0 6 0 Southern portions of the Northeast, along with the Mid-Atlantic are suffering cow distress due to the heat wave, which has simultaneously lowered milk production. Manufacturing milk supplies, as well, are lower from the production declines and increased draws from Class I plants. As milk routes see reductions, milk handlers are consolidating loads. The Southeast is very low on fluid milk as area heat and humidity significantly reduce milk production volumes. Manufacturing is seeing heavier pulls on milk supplies, as loads move in from New Mexico to support area Class I demand. Florida weather is hot with little rain. July is on pace to record, on average, the hottest month in history. Consequently, milk production at the farm continues to fall and expects to maintain the trend. Milk sales are flat. Export milk shipments totaled 13 loads this week. Condensed skim volumes remain heavy. However, manufacturers are finding some relief as warmer conditions impact the level of milk receipts, as truckload sizes are seeing reductions at the farms. Most condensed skim trades are contracted volumes. Smaller quantities of East f.o.b. condensed skim are moving into Mid-west states. Traders note improved pricing for out of region transactions. The East cream market appears better balanced than in previous weeks, with sufficient supplies and steady demand. Cream demand, prompted by the regions' seasonally high temperatures, is generating high-volume ice cream utilization. Cream multiples for all Classes range 1.28-1.35. According to the DMN National Retail Report-Dairy, for July 22-28, the U.S. weighted average advertised price for a gallon of milk was $2.41, a 31 cents decrease from last week and an 8 cents drop compared to last year. The weighted average regional price for a gallon of milk in the Northeast was $1.79, down significantly $1.90 from the previous week. Wednesday's CME Group cash trading saw Grade AA butter close at $2.2225, down $0.0750 from a week ago. MILK PRODUCTION: According to NASS, milk production in the 23 major states during June 2016 totaled 16.7 billion pounds, up 1.6% from one year ago. Eastern states' milk production is as follows: June 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 214 + 4.5 New York 1,249 + 4.2 Pennsylvania 914 + 0.6 Vermont 229 + 1.3 Virginia 143 - 2.7 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