MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. May 24, 2017 (REPORT 21) 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 - 2.6114-3.0387 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .30-.77 Northeast - Class III - spot prices - .25-.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 0 190 SOUTHEAST STATES 0 0 0 0 0 0 Milk production in the Northeast and Mid-Atlantic is brimming at/near seasonal peak levels. Noticeably, the total volume of producers' milk receipts posted a new record for the month of April, along with producers' butterfat. As well, Class IV volumes were the highest ever. Manufacturing for both areas report heavier supply intakes, especially into area balancing plants. Class I interest is steady to declining as bottlers push back some, prompted by the upcoming holiday and school closings. Spot milk loads are moving $2.00 to $4.00 under Class. According to FMMO #1, Class 1 April usage accounted for 29.4% of total milk receipts, a decrease of 2.7% from the previous month. Farm milk output in the Southeast is steady. However, declines are reported in some areas. Milk handlers are preparing for distribution concerns as a few plants plan shutdowns for the Memorial Holiday period. According to FMMO Order #5, Class I utilization in the area was 59.57% in April, 5.66% lower than last month, and 4.72% below April the previous year. Florida's milk production has taken a slight downturn. Unseasonable high temperatures are expected to accelerate this trend. Milk sales are still sluggish, and sales will continue to drop as schools are starting to let out this week. Milk exports are at 170 loads. FMMO Order #5 reported that Class I utilization was 80.58% in April, down 2.84% compared to last month, and 3.89% below April the previous year. Cream supplies in the East are readily available and expected to increase over the Memorial Holiday period, as plant closings add to market. Some manufacturers sidestepped butter making to sell in-house volumes, as orders surged in some areas of the region. Cream multiples range 1.10-1.28, with movement throughout the range. However, cream multiples will likely move lower over the course of the week. Bottled cream production is steady, but as strawberry season progresses, sales will likely improve. The condensed skim market is mostly steady, but prices have advanced. Class II wet solid sales are fair to good. Demand for Class III condensed skim is decent as shipments to Midwestern cheese makers continues. With the announcement of May's Advanced Prices, the Class II Nonfat Solids price increased $0.0323, compared to the previous month. According to the DMN National Retail Report-Dairy, for May 19-25, 2017, the U.S. weighted average advertised price for a gallon of milk is $2.46, down 12 cents compared to last week, but up 12 cents from a year ago. In the Northeast, the weighted average advertised price for a gallon of milk is $3.78, up 9 cents from last week's regional price. MILK PRODUCTION: According to NASS, milk production in the 23 major states during April 2017 totaled 17.2 billion pounds, up 2.0% from one year ago. Milk production for selected Eastern states are as follows: April 2017 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 233 + 1.3 New York 1,265 + 3.9 Pennsylvania 948 + 2.5 Vermont 230 + 0.9 Virginia 153 + 2.0 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