MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. June 21, 2017 (REPORT 25) 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 - 3.3421-3.6031 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .25-.70 Northeast - Class III - spot prices - .20-.75 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 0 160 0 142 0 125 SOUTHEAST STATES 0 0 0 0 0 0 New England and Mid-Atlantic milk production volumes are steady to lower in some areas. While a+ surge of heat moved through Vermont, heavy shower activity occurred in some of the Atlantic coast states. Processors report more than adequate amounts of milk moving into production in some instances. Balancing operations are seeing an uptick in milk intakes this week, but volumes are not burdensome. Overall, Class I sales are steady to lower as schools continue to finish up for summer. Southeast milk production edged lower as a recent heatwave in some areas takes a toll on cow comfort. Processing plants are able to satisfy contractual customer needs, as the declines in bottling orders add to milk receipts. Federal Order No. 7 reports Class I utilization was 62.92 percent in May, up 3.35 percent compared to the previous month, but 1.53 percent lower than May last year. In Florida, the rainy season is in full force, but portions of the state maintain severe drought levels, as milk production steadily declines. Milk sales are flat, and doubtful to change before August. Milk exports rose to 160 shipments this week, 18 spot loads more than last week. Federal Order No. 6 reports Class I utilization was 81.18 percent in May, up 0.60 percent compared to last month and up 0.07 percent from May 2016. The DMN National Retail Report-Dairy, June 16- 22, 2017, reports that the U.S. weighted average advertised price for a gallon of milk is $2.55, up 3 cents from last week and up 4 cents from the previous year. Cream markets continue to wield firmness, as supplies become less accessible and demand builds. Both Class II ice cream and Class IV butter production compete for available cream supplies. Hence, cream multiples are reported 1.30-1.40, higher than last week?s regional f.o.b. transactions. Demand for condensed skim is mostly for the filling of contracts. Some improvements in the spot market are noted, as condensed skim prices remain very low for some f.o.b. cash transactions. Drying schedules are still very active in clearing surplus volumes. MILK PRODUCTION: According to NASS, milk production in the 23 major states during May 2017 totaled 17.8 billion pounds, up 1.8% from one year ago. Individual Eastern states? milk production are as follows: MAY 2017 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 229 - 0.4 New York 1,323 + 2.3 Pennsylvania 977 + 2.1 Vermont 239 + 0.8 Virginia 155 + 1.3 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