MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  October 5, 2016 (REPORT 40)                                                


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 -  2.3142-2.5071                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING 
PLANTS:                
Northeast - Class II - includes monthly formula prices -   .70-.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                110     0    90     0   220     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  


Farm milk production in the Northeast and Mid-Atlantic is generally 
steady, as output hovers near seasonal lows. Class I, II, and III 
demand is good. Plants in the Mid-Atlantic are seeing milk intakes 
increase due to surplus milk availability, with hurricane conditions   
expected to impact distribution to some areas of the southeast.  
The Southeast's milk production remains in good balance with only the 
occasional need to ship to manufacturing plants. Class I demand 
continues to be good, at seasonally expected levels, as bottlers add 
to orders. As Florida's milk production bottoms, Hurricane Matthew is 
expected to move into the East coast state beginning Thursday 
afternoon. Bottling plants in the southernmost region received 
additional milk to prepare for any delivery delays, with plans to 
postpone production until the storm passes. Moving up the north coast, 
some plants will operate, but plan to adjust production depending on 
conditions. Other bottlers scheduled to close completely. In general, 
temperatures are hot, with cooler nights and late afternoon showers. 
Import milk shipments total 110 f.o.b. spot loads this week. Cream 
supplies are ample, allowing buyers to shop around for lower 
multiples. This week, cream multiples ranged 1.20-1.30 with the upper 
end of the range supported by bottled cream manufacturers. Demand is 
moderate. Some butter plants have expanded churning schedules and are 
building inventories for the upcoming holiday season. The DMN 
September monthly average price for Northeast Class II cream was 
$2.6256, compared to $3.5154 a year ago. At the CME Group, Grade AA 
butter closed Wednesday at $1.8500, down $0.0700 from a week ago.
Demand for condensed skim milk from Class II manufacturers, 
particularly yogurt, remains good. The DMN September monthly average 
price for Northeast Class II condensed skim was $0.8114, compared to 
$0.8086 a year ago. According to the DMN National Retail Report-Dairy, 
for September 30-October 6, 2016, the U.S. weighted average advertised 
price for a gallon of milk was $3.48, up 74 cents compared to last 
year and up $1.16 from last week. The Southeast weighted average price 
for a gallon of milk was $3.65, an increase of $1.03 from last week. 


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