MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. May 10, 2017 (REPORT 19) 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 - 2.4277-2.6388 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .10-.73 Northeast - Class III - spot prices - .20-.80 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 0 170 0 165 0 160 SOUTHEAST STATES 0 0 0 0 0 0 In the East, bottled milk sales are steady at slow to fair levels throughout. Northeast contacts note that milk output inches upward. Rainfall has been consistent but cows have been put out on grass as fields green up. In the Middle Atlantic area, milk output rises along typical patterns. Surplus milk volumes are still quite heavy, but manageable for some. In the Southeast, milk production remains active. Plants continue to ship milk to other outlets, on prearranged agreements. Manufacturing schedules have changed little from the previous week. Florida's weather continues to be very hot and dry with no rain in the forecast. Fire hazards are still extremely high. Prompted by the heat, milk production is down and expects to trend lower. Milk sales are flat, with the outlook for increasing unfavorable, as schools are set to close in a few weeks. Export milk shipments are trending higher with spot shipments totaling 170 loads this week. The cream market undertone continues on the weaker side. Supplies are abundant. Spot movement is sluggish to fair as loads clear within the East and across regions. Ice cream usage is steady, but moving up in some areas, although mixed weather conditions appear to stifle cream interest. Soft serve orders improved in the southernmost parts of the region. Generally, multiples range 1.15 to 1.25. However, some loads clear into other regions as low as flat market to reportedly support butter production. Butter churning is steady at excessive levels. The condensed skim market is steady. Distressed loads of condensed skim have been reported, but volumes are dropping somewhat. Demand for Class III condensed skim is fairly decent as shipments to Midwestern cheese continues. Class II wet solids are fair to good, with swings, as yogurt production declines and ice cream production climbs. With the recent Announcement of the Class and Component Prices, the Class III Skim Milk price decreased $0.59 from the previous month. According to the DMN National Retail Report-Dairy, for May 5-11, 2017, the U.S. weighted average advertised price for a gallon of milk is $2.62, up 26 cents compared to last week and up 33 cents from a year ago. In the Northeast, the weighted average advertised price for a gallon of milk is $3.12, with a retail price range of $2.19-$3.69. 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