MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. September 14, 2016 (REPORT 37) 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 - 2.4420-2.6862 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 50 0 55 0 120 0 SOUTHEAST STATES 0 0 0 0 0 0 Milk output in the Northeast is mostly steady. Cooler temperatures have moved into parts of the area and are expected to progress through the week. Active pulls from Class I orders appear to be settling, as milk pipelines continue to be filled. Some manufacturers note higher than normal intakes for this time of the year. Mid-Atlantic milk supplies are adequate, as production volumes move lower. Balancing plants are able to meet fluid contract commitments with very little remaining for manufacturing. Southeast milk production continues to lose ground. Manufacturing supplies are held near contract minimums to ensure bottling plant needs are met. Florida is still seeing hot weather but nights are cooler. Rain is a daily occurrence. Production declines continue with expectations of bottoming out soon. Class I sales remain flat. Increases are not likely to appear until November. Imported milk shipments are trending lower, with transactions totaling 50 loads this week. Cream multiples for all Classes range 1.20-1.32, as declines occurred at both the top and bottom limits. Sources indicated cream supplies improved in availability. The market notes retreating ice cream demand and active cream distribution through standardization. Nonetheless, cream volumes are actively moving to cream cheese production as market interest grows seasonally. Cream for butter usage appears steady to nominally building, in some channels. Wednesday at the CME Group, saw Grade AA butter close at $2.0100, down $0.0250 from a week ago. Condensed skim supplies are available at levels adequate for most manufacturing needs. Supplies are clearing through contracts with limited volumes for the spot market, as customers, in some instances, acquire extra loads. Condensed skim to Class IV is at seasonal levels. According to the DMN National Retail Report-Dairy, for September 9-15, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.82, up 37 cents compared to last year, and up 2 cents from last week. The Northeast weighted average price for a gallon of milk was $2.62, up 47 from last week. This week, prices range $2.50-$2.88. 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