MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. April 12, 2017 (REPORT 15) 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 - 2.2344-2.5110 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .25-.95 Northeast - Class III - spot prices - .30-1.00 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 0 150 0 150 0 130 SOUTHEAST STATES 0 0 0 0 0 0 Because of the new Class 7 pricing policy, Canadian markets are no longer available for milk export volumes from some Northeast milk producers. As such, companies currently processing producers' milk shipments to Canada will no longer accept area milk volumes starting May 2017. Meanwhile, Northeast milk moving into Class I is seeing a few kickbacks, but demand is improving for Class II processing needs. In the Mid-Atlantic, balancing facilities are operating close to full as increases in milk production lead to surplus volumes clearing into those plants. Some pipelines that support Class I report drops in purchases due to upcoming school holiday closings. Southeast farm milk output continues to rise. Milk distributions into bottling plants are down. Some handlers are having to push loads West, to butter and powder facilities, as most auxiliary cheese processing plants maintain sufficient supplies of milk. Florida is very dry with reports of a number of fires. Hence, milk production has declined due to the hot spell that has stretched over the past few weeks. Bottling sales began the week on an uptick, but have since retreated with order cuts. Handlers expect more reductions after the holiday. Export milk shipments totaled 150 f.o.b. loads this week. With last Wednesday's announcement of the Class and Component Prices, the Class III milk price decreased $1.07 from the previous month. The fluid cream market is mostly steady. Buying interest improved with increased spot sales into Class II production. Ice cream mix makers have been very busy. Cream bottlers have stepped up production for the brief holiday demand. Cream multiples range 1.05 to 1.18. Condensed skim is moving well under contracts. Volumes remain heavy with discounts still available for both Class II and III processing. According to the DMN National Retail Report-Dairy, for April 7-13, 2017, the U.S. weighted average advertised price for a gallon of milk was $2.45, down 23 cents compared to last week, but 3 cents above last year. In the Northeast, the weighted average advertised price for a gallon of milk is $3.69, exceeding the national price by $1.24. The weighted average price for Southeast gallon milk is $2.49, 4 cents above the national weighted average advertised price. 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