MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  November 30, 2016 (REPORT 48)                                               

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 -  2.4430-2.7483                                    

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 -   .40-.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                  0    23    30     0    20     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Milk production along the East coast, from the Northeast to Florida, 
is steadily improving. Manufacturers handled higher volumes over the 
extended holiday weekend, but noted that some milk volumes are being 
pulled toward higher class uses as the week advances. Some bottlers 
report a rebound in fluid milk orders as K-12 schools and other 
education institutions reinitiate meal programs after the holiday 
lull. However, milk handlers in other areas reported push back on 
previously scheduled loads from their fluid customers. Condensed skim 
availability in the Northeast is above needs in many areas and brokers 
report some challenges in finding homes for the current volumes. Due 
to the ample supply, prices shifted lower on the bottom of the Class 
III spot price range. Finding truck drivers/tankers is also a problem 
within the region as some were booked earlier. Florida milk handlers 
noted the flow of milk reversed for the week, with 23 loads heading 
out of state as the higher milk production trend exceeded local 
processing capacity. Milk handlers also note o pick up volumes on 
farms are improving as dairy operators opt to hold onto cows while 
cull prices are low. Components are improving seasonally. Cream demand 
is active throughout the region, with both Classes II and III 
manufacturers readily taking in available loads on both spot and 
contract bases. In some areas, cream is in fairly high demand because 
of continuing cream exports. Multiples are 1.20-1.35. According to the 
DMN National Retail Report-Dairy, for November 25-December 1, 2016, 
the U.S. weighted average advertised price for a gallon of milk was 
$2.72, up 3 cents compared to last year, and up 11 cents from last 
week. The Southeast weighted average price for a gallon of milk was 
$2.73, up 74 cents from last week. This week, milk prices in one 
gallon packaging range $1.99-$2.79.


1300CT janet.linder@ams.usda.gov 608.557.7003
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