MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. October 19, 2016 (REPORT 42) 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 - 2.1911-2.4605 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 50 0 110 0 215 0 SOUTHEAST STATES 0 0 0 0 0 0 In the East, diverse weather extremes are affecting the region's cow forage supply. Severe drought in areas of the Northeast and Southeast increases poor pasture conditions, while limiting the planting of winter wheat. Comparably, flooding from Hurricane Matthew has engulfed fields of unharvested soybean crops in many Southeast coastal areas. Northeast milk production remains steady. According to FMMO#1, during the month of September, pooled milk receipts resulted in the highest volume ever for the month. Fluid milk sales are steady. Manufacturing milk supplies are adequate at comfortable plant levels. Milk handlers in the Mid-Atlantic are seeing steady production, with loads supplying areas of the Central region. Balancing plants' milk receipts are steady to lower. In Florida, temperatures are starting to cool seasonally, with daytime highs in the 80s and nights in the 60s. Milk marketers note a slight uptick in production. Fluid sales leveled as the effects of the storm diminish. Import shipments totaled 50 f.o.b. loads, compared to 110 loads last week. Cream demand is increasing. Supplies are mostly adequate to meet the current demand. F.O.B. spot purchases of cream pushed multiples higher, 1.22-1.37. Sour cream and yogurt are seasonally active. In a period when butter prices typically peaks at the CME Group, prices are trending downward, with Grade AA butter closing Wednesday at $1.7550, down $0.0350 from a week ago. Skim condensed is tight according to some milk market sources. However, unexpected supplies were available in the spot market due to plant issues. Condensed skim to Class IV processing is continuing strong. According to the DMN National Retail Report-Dairy, October 14- 20 2016, the U.S. weighted average advertised price for a gallon of milk was $2.55, up 17 cents compared to last week and up 10 cents from the previous year. The Northeast weighted average price for a gallon of milk was $2.66, declining 23 cents compared to the previous week, while the Southeast milk price, $2.62, fell 5 cents compared to 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