MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. October 26, 2016 (REPORT 43) 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 - 2.2396-2.3984 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .83-.98 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 50 0 120 0 SOUTHEAST STATES 0 0 0 0 0 0 Milk production in the Northeast is flat. Class I demand is unchanged. Manufacturing milk supplies remain sufficient for processors' needs. Mid-Atlantic farm level production is steady. Class I sales are firm, as Class II sales progress. Manufacturing supplies are adequate as most producers are comfortable with current levels. The Southeast milk output is increasing marginally. Balancing plants are able to fill fluid contracts, with minimal supplies remaining for manufacturing. Farm milk production in the Florida is holding steady, with slight increases in some areas. Components are trending up. Class I demand is stable, prompting identical import milk shipments as last week. Cream supplies continue to see strong pulls from Class II. Regional availability is somewhat tight. Cream multiples ranged 1.27-1.36 as cream cheese production escalates. The CME Group saw prices for Grade AA butter close Wednesday at $1.8850, up $0.1300 from a week ago. Condensed skim milk supplies are adequate for meeting fluid contracts, although limited supplies remain for manufacturing or spot sales. According to the DMN National Retail Report-Dairy, October 21-27 2016, the U.S. weighted average advertised price for a gallon of milk was $2.99, up 44 cents compared to last week and up 39 cents from the previous year. The Northeast weighted average price for a gallon of milk was $3.27, 28 cents above the national average, and 61 cents higher compared to the previous week. MILK PRODUCTION: According to NASS, milk production in the 23 major states during September 2016 totaled 16.0 billion pounds, up 2.3% from one year ago. Eastern states' milk production are as follows: September 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 176 - 2.8 New York 1,209 + 4.9 Pennsylvania 867 + 1.3 Vermont 220 + 3.3 Virginia 134 - 3.6 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