MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  October 12, 2016 (REPORT 41)                                                


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 -  2.2092-2.4135                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING 
PLANTS:                
Northeast - Class II - includes monthly formula prices -   .79-.97                        
Northeast - Class III - spot prices -   .85-.96                                           

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   110     0   230     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Milk production in the Northeast is seasonally strong. Year over year 
output remains higher. Pulls from Class I are steady, with adequate 
remaining supplies into manufacturing. Markets expect stronger pulls 
from each Class of milk over the next few weeks. Farm milk production 
in the Mid-Atlantic is flat. Manufacturers' fluid milk supplies are 
normally in balance with contract needs. Class I demand continues to 
be at levels expected for this time of year. In the aftermath of 
Hurricane Matthew, some bottlers in Florida are cutting orders, as 
others add to loads. Milk handlers note, it could take a week for milk 
distribution to get back on track. In general, sales are down this 
week and expected to level off. An upturn in milk production, with a 
slow increase, should occur over the next few weeks. Import shipments 
total 110 f.o.b. loads this week. Cream supplies continue to be 
readily available, with an uptick in demand, as some cream cheese 
makers have expanded production. Cream multiples ranged from 1.19-
1.30, with moderate quantities of cream supplies channeled to butter 
churns. At the CME Group, Grade AA butter closed Wednesday at $1.7900, 
down $0.0600 from a week ago. Demand continues to be good for 
condensed skim from Class II manufacturers and cheese makers. Supplies 
mostly move through contracts. Manufacturing surplus supplies are 
rolling over to assist with the following week's condensed skim 
demands, as few loads exchange in spot markets. Condensed skim dryers 
are active. According to the DMN National Retail Report-Dairy, October 
7-13 2016, the U.S. weighted average advertised price for a gallon of 
milk was $2.38, down $1.10 compared to last week and down 18 cents 
from the previous year. The Southeast weighted average price for a 
gallon of milk was $2.67, a decline of 98 cents from last week. 
DAIRY PRODUCTS: According to NASS, August 2016 production of hard ice 
cream in the Atlantic region totaled 16.2 million gallons, 3.7% more 
than last month, but 0.5% less than a year ago. Cumulative 2016 
production through August totaled 547.9 million gallons, 2.0% higher 
than the previous year's totals through August. U.S. Yogurt production 
(plain and flavored) for August totaled 416.3 million pounds, up 15.0% 
from last month and up 3.6% 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