MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  November 02, 2016 (REPORT 44)                                               


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 -  2.3872-2.5737                                    

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                 20     0    50     0    60     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

The Northeast and Mid-Atlantic milk production is mostly steady. 
Spot milk activity is limited. Milk orders from holiday demand are 
steady to increasing. Balancing plants are seeing an uptick in intakes 
as pools of designated holiday milk volumes clear to manufacturing. 
In the Southeast, milk production is steady. Supplies are in balance 
with demand. Auxiliary manufacturers' milk receipts are typically at 
contract minimums. Increasing drought in parts of the area has caused 
further pasture deterioration, leading to delays in planting winter 
wheat and cover crops. As temperatures cool in Florida, milk 
production shows signs of rising slowly. Bottling sales are slowing. 
Handlers are not anticipating upward movement until late in the month. 
Import milk shipments are down to 20 f.o.b. spot loads this week. 
Cream supplies are tight. Sources suggest active interest from 
international markets impacts availability. For now, cream based 
manufacturers are meeting existing product demand. Regionally, cream 
multiples range 1.28-1.38. Seasonally strong cream cheese processing 
and active butter churning pulls on cream supplies. The CME Group saw 
prices for Grade AA butter close Wednesday at $1.8900, up $0.0050 from 
a week ago. Condensed skim sales are steady to lower overall into 
Class II. However, orders moving toward production of holiday 
cultured, whipped and aerated products are improving. Condensed skim 
for Class IV production is mixed, as volumes available are limited for 
some area dryer operations. According to the DMN National Retail 
Report-Dairy, October 28-November 3, 2016, the U.S. weighted average 
advertised price for a gallon of milk was $2.54, down 45 cents 
compared to last week, but up 40 cents from the previous year. Retail 
ad volume more than doubled since the last survey. 

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