MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  April 19, 2017 (REPORT 16)                                                  


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 -  2.1489-2.5036                                    

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   145     0   150     0   130                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

According to World Agricultural Supply and Demand Estimates (WASDE), 
the milk production forecast for 2017 is lowered as reductions in milk 
per cow offset increases in milk cow numbers. Fat basis imports are 
reduced on weaker imports of cheese and butterfat products, but 
imports of milk protein products support a higher skim-solids basis 
import forecast. Meanwhile, milk production is showing upticks across 
the majority of the East region. Gains are most noticeable in the 
Southeast, where sources indicate milk receipts are heavy with all 
auxiliary plants running full. In the Northeast, the total volume of 
producer milk receipts continues to top the previous year. According 
to FMMO #1, in the most recent pool summary (March), Class I usage 
accounted for 32.1 percent of total milk receipts, an increase of 0.6 
percent from February. Demand is flat for Class II processing plants. 
Farm milk output is adding to Mid-Atlantic manufacturers' milk 
supplies. Bottling orders are at seasonal levels. Production in 
Florida is holding steady. Fluid milk sales dipped some this week, as 
expected after Easter. Export milk shipments are at 145 loads this 
week. Cream supplies remain ample. Buyer interest has grown with Class 
II use. The market's ability to move spot loads locally, within the 
East, has improved compared to prior weeks. Multiples range 1.03 to 
1.20, with higher multiples based on time of transaction and degree of 
need. Eastern condensed skim volumes are growing. As supply levels 
become   cumbersome, in order to move loads, sellers of condensed skim 
are bargaining through sharp discounts. According to the DMN National 
Retail Report-Dairy, for April 14-20, 2017, the U.S. weighted average 
advertised price for a gallon of milk was $3.79, up $1.34 compared to 
last week and up $1.38 over last year. In the Southeast, the weighted 
average advertised price for a gallon of milk is $4.83, surpassing the 
national weighted average price by $1.04. Prices for gallon milk 
ranged $4.49-$4.99 in the region.

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