MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  March 29, 2017 (REPORT 13)                                                  

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 -  2.0078-2.4305                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .20-.95                        
Northeast - Class III - spot prices -   .20-.97                                           

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   140     0   190     0   170                                  
SOUTHEAST STATES         0     0     0     0     0     0                                                                                                                            
 
Milk production continues to climb throughout most of the East region.  
For the current week, Northeast and Mid-Atlantic milk volumes continue 
to increase as spring flush nears. Contacts report that milk supplies 
are more abundant into balancing, as the areas have recovered from an 
earlier snowstorm, which drove active fluid milk production. However,
forecasts indicate a recurrence of wintery conditions in parts of the 
Northeast by weeks end. In the Southeast, milk production is robust. 
Milk volumes tend to be excessive of Class I needs. As a result, 
manufacturers who process southeast milk note stronger milk intakes. 
According to NASS, Class I utilization was 68.48% in the month of 
February, 1.28% lower than the previous month and 4.77% lower than 
last February. Florida's milk production continues to leisurely climb. 
With spring break still in effect, Class I milk sales remain somewhat 
suppressed. Export milk shipments totaled 140 loads this week after 
moving to 190 loads last week. NASS reported the uniform price in 
Hillsborough County, Fla. was $21.07 per hundredweight for milk at 
3.5% butterfat in February. Therefore, the uniform price fell $1.15 
per hundredweight compared to the previous month, but rose $2.64 per 
hundredweight from February a year ago. Cream remains very accessible 
in the East region. Marketing agents are clearing surplus cream to 
Class II and Class IV plants in the East and other regions. As a 
result, sources note cream multiples range mostly 0.95 to 1.15 f.o.b., 
although a few trades extended below and beyond these confines based 
on day and time of need. Condense skim supplies are still heavy, 
prompted by Eastern milk output. Demand is slow as volumes clear to 
Class III and IV plants. However, suppliers find it challenging to 
move burdensome condensed skim loads in the East. As a result, due to 
delivery costs shippers note limited net value for spots, as condensed 
skim transfers into other regions. With the announcement of April's 
Advanced Prices and Pricing Factors, the Class II Nonfat Solids price, 
$0.7533, declined $0.1356 from the previous month. According to the 
DMN National Retail Report-Dairy, for March 24-30, 2017, the U.S. 
weighted average advertised price for a half gallon of milk was $1.69, 
down $0.74 cents compared to last week and down $0.73 cents from last 
year. In the Northeast, the weighted advertised price for a gallon of 
milk is $3.69, exceeding the national price by $1.27.
 
1300CT daniel.johnson@ams.usda.gov 608.422.8605  
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