MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  September 28, 2016 (REPORT 39)                                              

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 -  2.4199-2.6380                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING 
PLANTS:                
Northeast - Class II - includes monthly formula prices -   .75-.97                        
Northeast - Class III - spot prices -   .80-.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                 90     0    70     0   220     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Northeast milk production is steady, volume wise. Sources indicated 
that good bulk milk sales affects volumes moving into manufacturing, 
but milk intakes are adequate. Mid-Atlantic milk production is steady 
to lower. Bottled milk demand is steady. Southeast milk is unchanged 
to lower at seasonal levels. However, ample supplies are available as 
one plant is unable to process allocated milk volumes due to a major 
maintenance problem. Manufacturing intakes remain restrained, as 
surplus milk supplies generated by the situation transfer to bottling. 
Florida milk is nearing seasonal lows. Some producers have initiated 
cow freshening. Bottling sales are mostly steady. Class I utilization 
in Florida, was 84.14 percent in August. This is an increase of 0.81 
percent compared to last month and is an increase of 1.13 percent 
compared with August 2015. Imported f.o.b. milk shipments totaled 90 
loads this week. Cream markets are balanced. According to some 
sources, the demand is lacking in a slow market. Multiples are 
unchanged to lower based on captured data. Cream multiples for all 
Classes ranges 1.22 to 1.33. Moderate volumes of cream to sour cream 
and cream cheese replaces loads of cream that would typically clear to 
ice cream production, which is currently seasonally lower. At the CME 
Group, Grade AA butter closed Wednesday at $1.9200, down $0.0475 from 
a week ago. Condensed skim supplies are sufficient. Surplus volumes 
are mixed after contractual commitments. The market is seeing steady 
demand improve as buyers search for additional loads, which are 
usually available at discount. However, attached freight charges 
impact sales. With the most recent announcement of Advanced Prices, 
the Class II Nonfat Solids price is $0.7933 per pound, an $0.0389 
increase over the previous month. According to the DMN National Retail 
Report-Dairy, for September 23-29, 2016, the U.S. weighted average 
advertised price for a gallon of milk was $2.32, down 39 cents 
compared to last year and down 22 cents from last week. The Northeast 
weighted average price for a gallon of milk was $2.18, falling $1.51 
from last week. Prices in the Southeast region range $2.29-$2.69. 


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