MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  July 05, 2017 (REPORT 27)                                                   

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 -  3.2135-3.5560                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING 
PLANTS:                
Northeast - Class II - includes monthly formula prices -   .35-.65                        
Northeast - Class III - spot prices -   .30-.70                                           

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   120     0   135     0    65                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Milk production is easing throughout the East region. Off-farm loads 
are lighter weights, with some haulers consolidating routes. Current 
Class I demand is lower to about steady. The July 4 holiday period 
produced minimal interruptions in bottling schedules. Contacts note 
milk intake tests for butterfat and protein content are lower. 
Noticeably, in Florida, hot weather has taken a toll on cows and milk 
output. The number of milk loads shipped out of state for processing 
has dropped significantly over the past few weeks. In most other parts 
of the region, temperatures and humidity are rising as well. Less than 
burdensome milk supplies are moving into manufacturing for processing.      
The DMN National Retail Report-Dairy, for June 30-July 6, 2017, 
reports the U.S. weighted average advertised price for a gallon of 
milk was $3.66, up $1.23 from last week and up $1.38 from last year. 
The condensed skim market remains steady. Demand for condensed skim is 
more active with increasing soft serve mix production. In addition, 
there are a few cheese makers taking extra loads. The DMN June 2017 
monthly average for Northeast Class II condensed skim was $0.5077, 
compared to $0.4966 a year ago. With June 2017 Announcement of the 
Class and Component Prices, the Class III skim milk price declined 
$0.16, compared to the previous month. The fluid cream market is 
steady to strengthening. Supplies are not as available, with good 
demand. Spot prices are higher as the CME Grade AA butter average 
increased slightly last week. Cream multiples range 1.22 to 1.35, 
while routinely in the mid 1.20s to low 1.30s. Soft serve demand is 
improving as hotter weather encourages interest up and down the East 
coast. Cream churning is lighter at most butter plants. The DMN June 
2017 average for Northeast Class II cream was $3.2176, compared to 
$2.7937 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