MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. June 28, 2017 (REPORT 26) 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 - 3.0532-3.4188 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .30-.82 Northeast - Class III - spot prices - .25-.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 0 135 0 160 35 0 SOUTHEAST STATES 0 0 0 0 0 0 In the Northeast and Mid-Atlantic, weather patterns are contributing to the steady to slightly lower milk production trend, while further south, heat and humidity levels are affecting farm milk production. Producers and handlers indicate milk volumes remain substantial, as reports for Eastern milk output, in general, stand above previous year levels. Handlers perceive that volumes during the upcoming July 4 holiday period are expected to be heavy into balancing, with active diversions from multiple milk channels to those plants. Operations are likely to run at/near capacity into the first of next week, before leveling to non-holiday intake volumes later in the week. In Florida, milk exports are at 135 loads this week, 25 spot shipments less than last week as volumes transfer to ultra-filtration and cheese plants. The DMN National Retail Report-Dairy, June 23-29, 2017, reports the U.S. weighted average advertised price for a gallon of milk is $2.43, down 12 cents from last week, but up 23 cents from the previous year. Cream markets are active. As temperatures rise, cream shipments that were affected by the heat are being returned. Hence, multiples vary 1.18-1.32, with the lower end of the range driven somewhat by the affected loads that were able to clear into production. Some buyer resistance occured for offers at the top of the range, as those buyers wait for multiples to adjust lower due to July holiday dynamics of the market. Meanwhile, suppliers expect the last opportunity for butter operations to take advantage of surplus cream is during the July 4 holiday period, after which, demand for Class II seasonal ice cream needs is likely to surge and reduce availability. Condensed skim markets are mostly steady as volumes continue to move generally under contracts, with minimal spot sale activity reported. With the latest July 2017 Announcement of Advanced Prices and Pricing Factors, the Class II nonfat solids price increased $0.0577 over the previous month. 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