MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  August 31, 2016 (REPORT 35)                                                 

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 -  2.7170-2.9260                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING 
PLANTS:                
Northeast - Class II - includes monthly formula prices -   .75-.93                        
Northeast - Class III - spot prices -   .70-.80                                           

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                 95     0    40     0   180     0                                  
SOUTHEAST STATES         0     0     0     0    50     0                                  

The USDA announced it would provide low interest emergency loan relief 
for Eastern region farmers stricken by this summer's drought, which 
includes 28 New York and Pennsylvania counties. Milk production in the 
Northeast moved slightly lower. Class I demand continues to fill 
pipelines as remaining schools are set to begin following the upcoming 
Labor Day period. Milk production in the Mid-Atlantic is steady to 
lower. Manufacturing is operating at levels 50% below capacity in some 
instances, as milk receipts continue to decline. Bottling orders are 
active, prompted by increased customer demand. Farm milk declines in 
the Southeast continue to require incoming milk shipments to support 
active fluid sales. Sales in the area are steady with add-ons to 
orders, as heavy milk volumes clear to a number of school networks. 
Weather conditions remain hot in Florida, but with the tropical storm 
approaching, the area is expecting a bit of rain over the next couple 
of days. Milk production continues to fall off but should level soon. 
Bottling plant sales are flat. Imported milk shipments number 95 spot 
loads this week. As school milk generates extra cream, some suppliers 
note the gradual increase in available cream volumes, and thus, a 
decline in multiples. There is a strong likelihood declining multiples 
will continue through the holiday weekend, as some cream based plants 
close for the holiday. Some brokers/suppliers are concerned as to 
where the numbers will land. Currently, cream multiples for all 
Classes range 1.30-1.40. Condensed skim is available mostly for 
contractual fulfillment, as suppliers report diminishing volumes for 
spot use. Plants are seeing fewer condensed skim loads clear to 
drying. Volumes are exchanging hands at flat class and up in spot 
markets. According to the DMN National Retail Report-Dairy, for August 
26-September 1, 2016, the U.S. weighted average advertised price for a 
gallon of milk was $2.37, a 14 cents decline compared to last year, 
and 21 cents decline from last week. The weighted average regional 
price for a gallon of milk in the Northeast was $2.34, down $1.40 from 
last week, with a price range of $1.89-$2.99. 

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