MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. May 17, 2017 (REPORT 20) 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 - 2.4990-2.7163 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 0 170 0 160 SOUTHEAST STATES 0 0 0 0 0 0 Farm milk output in the Northeast is steady at high levels. Fluid milk supplies are excessive beyond Class I needs, thrusting heavier milk intakes into balancing plants. Class II plants are still running at capacity. In parts of the Mid-East, milk production is steady, but receipts are building incrementally in other areas. Demand for fluid milk is seeing some reduction following fair to good bottling orders over the first 7-10 days of May. Most manufacturing plants are full. Southeast milk production is on the downside of peak. Bottling plants in the Southeast are seeing a slight uptick in orders with active retail demand. Cheese plants designated to handle the surplus milk volumes are busy with heavy intakes. In Florida, mostly steady milk production with diminished bottling orders prompted some handlers to transfer loads out of state. Milk shipments exported out of the state, 170 loads, are unchanged from last week. Although fluid sales are down, sources are seeing a decline in Class I order cutbacks this week. Not much has changed from last week's cream report, as the undertone remains steady with heavy supplies. Due to maintenance activity at a Eastern plant, sources note increased surplus cream availability. In-house cream supplies are mostly plentiful, which equates to numerous offers to sell, in a sluggish spot market. The urgency of handlers to clear loads erases the multiple as a pricing factor. Consequently, trades are occurring flat market, based on the CME butter average. However, cream multiples primarily range 1.15- 1.25. Ice cream plants note a moderate increase in cream demand as the season progresses. Condensed skim supplies remain readily available. Sales are flat to improving. Condensed skim spot prices are steady as a few loads clear at the cost of shipping. Dryer operations are running near capacity at most manufacturing plants to manage heavy supplies. According to the DMN National Retail Report-Dairy, for May 12-18, 2017, the U.S. weighted average advertised price for a gallon of milk is $2.58, down 4 cents compared to last week, but up 31 cents from a year ago. In the Northeast, the weighted average advertised price for a gallon of milk is $3.69, up 57 cents from last week's regional 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