MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. December 07, 2016 (REPORT 49) 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 - 2.7451-2.9613 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .70-1.01 Northeast - Class III - spot prices - .80-1.08 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 7 0 23 0 10 SOUTHEAST STATES 0 0 0 0 0 0 East region milk production is growing marginally, with year on year numbers above year ago levels. Farm milk production in the Northeast and Mid-Atlantic areas of the region is steady. Milk sales into fluid accounts are recovering with the reopening of school. Manufacturers' milk intakes are adequate for production needs. In the Southeast, milk handlers are seeing an increase in add-ons as Class I operations replenish designated milk outlets. Limited volumes are moving into manufacturing. Milk production on Florida's farms are currently steady as temperatures warm to record levels. Accordingly, milk handlers anticipate a looming slowdown in production. Milk sales are seasonally strong. The state exported 7 f.o.b. spot milk shipments this week. Condensed skim volumes are adequate. Loads are clearing primarily through contracts. Most transaction range 80 to 90 cents, an unwillingness of the market to pay more as delivered prices bump against NDM prices. The DMN monthly average of the range price series for Northeast Class II condensed skim during November 2016 was $0.8768, compared to $0.9492 a year ago. The November 30 announcement of Class and Component Prices saw the Class III Skim Milk price increase $1.9400 from the previous month. Cream demand is steady to softer in the East. Interest is variable as some churn operators are focusing on clearing internal cream supplies and no longer willing to take in additional volumes. The market is seeing steady pulls from Class II and III production. Multiples are 1.27-1.37. The DMN November 2016 monthly average for Northeast Class II cream was $2.5884, compared to $3.7246 the previous year. At the CME Group, Grade AA butter closed Wednesday at $2.0950, down $.1350 compared to a week ago. According to the DMN National Retail Report-Dairy, for December 1-8, 2016, the U.S. weighted average advertised price for a gallon of milk was $2.46, up 3 cents compared to last year, but down 31 cents from last week. The Southeast weighted average price for a gallon of milk was $3.34, up 61 cents from last week. 1300CT daniel.johnsohn@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