MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. September 21, 2016 (REPORT 38) 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 - 2.5200-2.6813 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .50-.90 Northeast - Class III - spot prices - .75-.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 70 0 50 0 120 0 SOUTHEAST STATES 0 0 0 0 0 0 Milk production in the Northeast and Mid-Atlantic is mostly flat, but in some areas milk volumes continue to move marginally lower. Milk haulers point out load volumes have stabilized somewhat after the most recent declines. Sales are good across the Classes in the Northeast. Southeast farm milk output is steady. Milk supplies continue to circumvent a few manufacturing operations. Bottling is receiving support from Southwest and Mideast milk. Milk production in Florida dipped once again. The state's fluid demand is mostly flat. However, milk imports rose by 20 loads this week, to 70 f.o.b. spot shipments, in support of bottled milk sales. Cream multiples for all Classes ranges 1.25 to 1.33. The spread closed slightly as spot transactions adjusted East multiples at the top and bottom of the range. Cream sales are steady. Market participants note the market as being in good balance. A few surplus loads are available in some locations. Wednesday at the CME Group saw Grade AA butter close at $1.9675, down $0.0425 from a week ago. Condensed skim remains adequate. Supplies expanded marginally with most volumes moving through contracts. Class II demand is steady to weaker. Interest from yogurt and cottage cheese markets are steady, but likely to increase seasonally. According to the DMN National Retail Report-Dairy, for September 16-22, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.71, up 2 cents compared to last year, but down 11 cents from last week. The Southeast weighted average price for a gallon of milk was $2.62, down 11 cents from last week. Prices in the Southeast range $1.99- $2.69. MILK PRODUCTION: According to NASS, milk production in the 23 major states during August 2016 totaled 16.7 billion pounds, up 1.9% from one year ago. Milk production in the Eastern states are as follows: August 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 180 - 7.2 New York 1,243 + 3.2 Pennsylvania 897 - 0.4 Vermont 227 + 1.3 Virginia 139 - 4.1 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