MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. September 07, 2016 (REPORT 36) 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 - 2.6528-2.8600 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 - .71-.94 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 100 0 95 0 160 0 SOUTHEAST STATES 0 0 0 0 0 0 Most schools are now in session. Manufacturing operations can expect the strong effect of Class I demand to limit supply intakes, as pipelines fill, particularly in the Northeast. Milk production in the Northeast and Mid-Atlantic is continuing along their seasonal declines, with sharper falloffs noted in some areas due to recent periods of heat and humidity. Mid-Atlantic milk re-distributions are supporting bottled milk sales in the Central region. In the Southeast, milk output experiences rapid declines in some areas. Manufacturing plant operators who typically facilitate milk distribution report very limited to no deliveries made this week as strong demand from Class I and decreases in milk production persist. Declines in Florida's farm milk output remain steady. Schools in the South have been in session for a couple of weeks, as a result, Class I pulls leveled somewhat. Cream multiples for all Classes range 1.28-1.38. As increased volumes of standardized cream come from Class I plants, ice cream processors have eased production schedules as the height of the season concludes. However, with active pulls from cream cheese and butter makers, demand remains good. The DMN August monthly average for Northeast Class II cream was $2.9757, compared to $3.0588 a year ago. Condensed skim supplies were more available over the holiday, with most supplies moving through contracts. Some drying schedules expanded to accommodate the increased manufacturing milk supply. The Class III price released August 31, increased $1.67 to $16.91. The DMN August monthly average for Northeast Class II condensed skim was $0.7683, compared to $0.7817 a year ago. According to the DMN National Retail Report-Dairy, for September 2-8, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.80, up 34 cents compared to last year, and up 43 cents from last week. The Northeast weighted average price for a gallon of milk was $2.15, down 19 from last week. This week, prices range $1.79-$2.50. DAIRY PRODUCTS: According to NASS, July 2016 hard ice cream production in the Atlantic region totaled 15.6 million gallons, 6.9% less than last month and 0.8% less than a year ago. Cumulative 2016 production through July totaled 477.6 million gallons, 2.1% higher than the previous year total through July. U.S. Yogurt production (plain and flavored) for July totaled 361.8 million pounds, down 8.9% from last month and down 6.9% from the previous year. 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