MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. November 22, 2016 (REPORT 47) 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 - 2.4144-2.7162 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .60-1.01 Northeast - Class III - spot prices - .62-.93 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 30 0 0 7 170 0 SOUTHEAST STATES 0 0 0 0 0 0 Northeast milk production is posting increases along seasonal trends. Fluid milk intake levels are higher into some manufacturing plants, ahead of Thanksgiving, but will likely decrease as Class I recovers next week. In the Mid-Atlantic, demand is sluggish into Class I as orders from school networks have paused for the Thanksgiving holiday break. Holiday prompted decreases in manufacturing production schedules are building milk volumes moving to balancing. In the Southeast, as some bottling plants push back milk due to over extended orders, those loads are clearing to auxiliary manufacturing plants, which is typical for the holiday period. Milk production in Florida is rising. Holiday milk sales are surging, although handlers anticipate a strong decline in post-holiday orders. Milk shipments totaled 30 imported spot loads. Market participants note, it's likely the last imported milk needed until next season. Cooler temperatures are occurring that reach into the 60s during the day, but dipped into the 30s at night. The holiday weekend may bring highs in the 70s. As drought conditions dry out water sources, the lack of rain continues to impact pasture conditions. Some areas in the southernmost part of the state are improving. Cream supplies are readily available this pre-holiday week. With most regional cream needs satisfied, some suppliers are clearing surplus loads to other regional cream markets. Cream multiples range 1.20-1.35. The CME Group saw the Grade AA butter price closed Monday at $2.0100, up $0.0200 from a week ago. Condensed skim milk supplies are increasing, with declining Class II demand, prompting stronger Class IV production. Supplies are clearing out of the East into outlets across regions. According to the DMN National Retail Report-Dairy, for November 18-24, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.61, down 11 cents compared to last year, but up 4 cents from last week. The Northeast weighted average price for a gallon of milk was $1.99, down $1.03 from last week. MILK PRODUCTION: According to NASS, milk production in the 23 major states during October 2016 totaled 16.5 billion pounds, up 2.7% from one year ago. Eastern states' milk production are as follows: October 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 178 - 3.3 New York 1,240 + 4.7 Pennsylvania 899 + 2.2 Vermont 226 + 3.2 Virginia 141 - 2.1 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