MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. August 24, 2016 (REPORT 34) 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 - 2.8815-3.1474 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 40 0 65 0 200 0 SOUTHEAST STATES 0 0 0 0 50 0 Hot weather saw some relief this week in the Northeast. Evening temperatures dipped down into the 50s in some parts of the area, boosting cow comfort. Milk marketers report a smaller decrease in milk production than in recent weeks. As education institutions go back into session, bottlers report strong orders for single serve containers. Industry contacts report availability of discounted spot loads of milk on the weekends. Mid-Atlantic milk production continues to seasonally decline. Milk supply in this area is tighter as demand for milk in the Southeast grows. Class I demand is strong in the Southeast as many schools are back in session. Milk production continues to fall as hot, humid weather prevails. Florida milk production is steady to slightly lower this week. Milk marketers anticipate production will continue to fall in the upcoming weeks. Class I demand remains strong and bottlers report continual demand for single serve containers. The state milk imports totaled 40 loads this week. Stronger demand for bottled milk has resulted in more cream availability on the spot market in the East. Cream multiples for all Classes, range 1.30-1.42. Cream cheese manufacturers are gearing up for the beginning of their busy season and anticipate pulling more cream into production in the upcoming weeks. Ice cream manufacturers continue to utilize large volumes of cream for production purposes. Condensed skim supplies are dwindling as orders for bottlers pick up. Some manufacturers are seeking condensed skim loads as a way to offset seasonal declines in milk intakes. Several industry contacts are choosing to hold on to condensed skim supplies and are filling dryers in efforts to build NDM inventories. According to the DMN National Retail Report-Dairy, for August 19-25, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.58, a 1 cent increase compared to last year, and up 9 cents from last week. The weighted average regional price for a gallon of milk in the Northeast was $3.74, with a price range of $3.59-$3.99. MILK PRODUCTION: According to NASS, milk production in the 23 major states during July 2016 totaled 16.8 billion pounds, up 1.4% from one year ago. Eastern states' milk production and changes are as follows: July 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 202 - 5.6 New York 1,268 + 4.0 Pennsylvania 920 + 0.3 Vermont 230 ... Virginia 143 - 3.4 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