MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. April 26, 2017 (REPORT 17) **Updated based on additional information collected 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 - **2.4876-2.6534 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .20-.93 Northeast - Class III - spot prices - .25-1.00 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 0 175 0 145 0 180 SOUTHEAST STATES 0 0 0 0 0 0 In New England, milk flowing off the farm is moving up in most areas. Supplies into balancing are more than ample for steady to improved Class I demand. Schools that were on vacation reopened and are receiving scheduled levels of bottled milk. Farm milk in the Mid- Atlantic is plentiful for steady seasonal bottled milk demand. Manufacturing still reports large surplus milk receipts. Milk production is holding steady in the Southeast area. Production patterns are at/near peak levels. Fluid milk supplies are heavier, exceeding steady Class I demand. The diversion of milk to auxiliary manufacturing plants is ongoing. Milk handlers in Florida are seeing a slight jump in production, but expect current output trends to be short-lived. In general, Class I sales are mostly steady to weak. However, sales rose as cuts from the holiday week adjusted, increasing sale volumes this week. Weather has been hot, in the 80s, with highs in the 90s expected this weekend. South Florida had some rain but much of the rest of Florida is still very dry with no rain in the forecast. Milk exports grew to 175 shipments, 30 more loads than last week. The fluid cream market tightened this week. Sources indicate cream multiples increased, now ranging **1.20-1.28. With the sudden climb in multiples, fewer spot loads are available. Butter churning remains relatively heavy, with a few cases of slowed production. Cream loads to ice cream production vary. Shifting weather tends to impact sales. Surplus volumes saturate the Eastern condensed skim markets. Interest is seasonally fair, but unspectacular. Loads are trading at distressed prices. With the announcement of April's Advanced Prices, the Class II Nonfat Solids price adjusted 2 cents lower, when compared to previous month. According to the DMN National Retail Report-Dairy, for April 21-27, 2017, the U.S. weighted average advertised price for a gallon of milk is $2.44, down $1.34 compared to last week, but up 9 cents over a year ago. In the Northeast, the weighted average advertised price for a gallon of milk is $3.65, well above the national weighted average price by $1.21. Retail prices for gallon milk range $3.49- $3.99 in the region. MILK PRODUCTION: According to NASS, milk production in the 23 major states during April 2017 totaled 17.5 billion pounds, up 1.8% from a year ago. Eastern states' milk production are as follows: March 2017 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 236 - 0.4 New York 1,281 + 3.6 Pennsylvania 966 + 3.0 Vermont 235 + 0.9 Virginia 155 + 0.6 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