MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  June 07, 2017 (REPORT 23)                                                   


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 -  2.8995-3.3345                                    

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-.82                                           

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   219     0   185     0   160                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

The peak has passed as milk output in the Northeast and Mid-Atlantic 
is generally steady, with light seasonal declines. Less milk is moving 
into school lunch programs, which encourages declines in bottled milk 
sales, as some colleges and schools are already on summer schedules.  
Surplus milk diversion to manufacturing is light to moderate with a 
few plants operating at/near capacity. Milk production in the 
Southeast is steadily declining along seasonal lines. Some 
manufacturing plants are taking on extra milk. Class I demand is 
sluggish. In Florida, the weather is very hot, in the 90s, as rain 
causes some flooding. Milk production continues to decline seasonally. 
Milk sales remain down. Handlers do not see an upturn until August, 
when schools are back in. Milk exports rose significantly to 219 loads 
this week. Cream markets are seeing higher multiples, 1.20-1.38, 
depending on need and time of purchase. Supplies are shorter and 
competition for available supplies show some aggressiveness. Ice cream 
production schedules continue to build seasonally. Soft serve mix 
sales have improved as temperature climb in some areas. Churning is 
lighter. DAIRY PRODUCTS: According to NASS, April 2017 hard ice cream 
production in the Atlantic region totaled 14.3 million gallons, 7.9 
percent less than last month and 6.2 percent less than a year ago. 
U.S. Yogurt production (plain and flavored) for April totaled 370.0 
million pounds, down 7.5 percent from last month and down 0.9 percent 
from the previous year. The DMN May monthly average for Northeast 
Class II cream was $2.6217, compared to $2.3316 a year ago. The 
condensed skim market, in general, remains weak. However, the Class 
III condensed skim price grew $0.35, over last month with the recent 
announcement of the Class and Component Prices. Capacity is limited 
for processing volumes of condensed skim at a few operations, 
prompting the discarding of surpluses. The DMN May monthly average for 
Northeast Class II condensed skim was $0.4873, compared to $0.4524 a 
year ago. According to the DMN National Retail Report-Dairy, for June 
2-8, 2017, the U.S. weighted average advertised price for a gallon of 
milk is $3.34, down 12 cents compared to last week, but up 90 cents 
from a year ago.

 

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