MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  November 09, 2016 (REPORT 45)                                               


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 -  2.4492-2.6753                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING 
PLANTS:                
Northeast - Class II - includes monthly formula prices -   .83-1.01                       
Northeast - Class III - spot prices -   .88-.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                 10     0    20     0    40     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Northeast and Mid-Atlantic farm milk production is steady along 
seasonal trends. Upcoming holiday retail demand is pushing bottled 
milk needs higher in some areas. Class II supplies are adequate for 
meeting production needs as strong interest prevail. Producers in the 
Southeast are seeing balanced milk production. Class I interest has 
declined as several bottlers cancelled milk orders. As a result, 
surplus milk is causing some backup as milk volumes clear to 
subsidiary manufacturing plants. The corn harvest is nearly complete 
in North Carolina, and Tennessee. Florida's milk production is 
generally balanced, but volumes are climbing slightly in some regions 
of the state. Milk producers are enjoying the seasonal increases, 
while handlers see good returns as the cheese market moves up. Import 
milk shipments are at 10 f.o.b. spot loads this week. Buyer are having 
a hard time finding cream in a tight Northeast market. Demand is 
strong, as some buyers/sellers who are short on supplies note a 
willingness to pay loftier multiples to obtain the loads they need. 
Cream multiples currently range 1.30-1.42. The best interest is coming 
from seasonal dips, eggnog and cream cheese. The CME Group saw prices 
for Grade AA butter close Wednesday at $1.9100, up $0.0200 from a week 
ago. The DMN October 2016 monthly average for Northeast Class II cream 
was $2.3502, compared to $3.3639 a year ago. Condensed skim supplies 
are moving largely through contracts with few spot sales. Drying 
activity is light to moderate. Class II and III demand is good, 
supported by active cheese sales and expanding Class II production 
schedules. The DMN October 2016 monthly average for Northeast Class II 
condensed skim was $0.8763 compared to $0.9088 a year ago. With the 
November 2, 2016 Announcement of the Class and Component Prices for 
the month of October, the Class III Skim Milk price declined $1.5700, 
compared to the previous month. According to the DMN National Retail 
Report-Dairy, November 4-11, 2016, the U.S. weighted average 
advertised price for a half gallon of milk was $1.67, down 42 cents 
compared to last week and down 64 cents from the previous year. The 
national weighted average price for eggnog in quart containers was 
$2.77, 1 cent lower than the previous week, but 22 cents higher than 
last 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