MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. August 17, 2016 (REPORT 33) 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 - 3.0281-3.1851 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .70-.93 Northeast - Class III - spot prices - .70-.75 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 65 0 70 0 60 0 SOUTHEAST STATES 0 0 0 0 50 0 Hot and humid weather, with frequent rainfall, affects milk production throughout the East region. Some of the heaviest showers fell in drought-affected areas of Northeast. Reports indicate that cumulative milk production through July in Northeast milk shed states is up 2.7%. Producers' milk continues its seasonal decline. Several manufacturers scheduled downtime for maintenance activities as milk intakes ease behind stronger Class I sales. Following the requests of bottlers, the percentage of milk that will pool into Class I supply plants will be reduced 5% for the months of September, October and November. Farm- level milk production in the Mid-Atlantic is lower. Manufacturing milk supplies in the area are reduced as increased Class I demand in the Southeast pulls supplies out of processing venues. Some balancing plants report significant falloff in milk intakes. Milk output continues to decline in the Southeast along the seasonal trends. Nearly all milk supplies are used to fill fluid needs as sales surge with the replenishing of school pipelines. Sources report some loads shifting to the Midwest bottling. Hence, area manufacturing milk supplies, if available, are moderated to contract minimums. In Florida, production is leveling off. Further declines are expected with typical seasonal low points still a few weeks out. Nearly all schools are back in session, thus, Class I demand is very strong. The state milk imports totaled 65 loads this week. The East cream market notes limited spot activity at higher multiples than the previous week. Cream multiples for all Classes, range 1.35-1.42. Several sources note in-house cream supplies are sufficient for most contractual needs. Seasonally hot temperatures continue to boost strong cream pulls from ice cream production. Wednesday's cash trading at the CME Group saw Grade AA butter close at $2.2025, down $0.0175 from a week ago. Condensed skim supplies are declining in most of the regions' markets as Class I pulls increase with the reopening of schools. Demand from ice cream, cream cheese and yogurt manufacturing is moderate to good. Some balancing plants are withholding noncontract condensed skim loads as they concentrate on improving NDM inventory. According to the DMN National Retail Report-Dairy, for August 6-18, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.49, a 45 cents increase compared to last year, but down 5 cents from last week. The weighted average regional price for a half gallon of milk in the Northeast was $2.99, unchanged from the previous week. 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