MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. July 19, 2017 (REPORT 29) 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 - 3.1962-3.5080 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .35-.77 Northeast - Class III - spot prices - .30-.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 70 0 100 0 50 SOUTHEAST STATES 0 0 0 0 0 0 According to WASDE, 2017 and 2018 milk production forecasts shifted lower from last month. Eastern farm milk production is experiencing steady declines throughout, as summer temperatures and intermittent rainfall impacts milk volumes in areas of the region. FMMO #1, in the Northeast, reported that the total volume of producers? milk receipts set a new high for the month of June, as the Class I volume surpassed the previous year. Milk supplies into manufacturing are heavy. Mid- Atlantic milk receipts for various dairy manufacturers are steady to heavy. Discounted milk has been reported to occasionally exchange at $5.00 under the Class price, as bottling orders remain seasonally light. Southeast handlers note milk haulers? schedules, in some instances, are changing from every day pickups due to the declines. Nonetheless, surplus milk is transferring to auxiliary cheese plants. According to FMMO #7, the uniform price in Fulton County, GA was $18.70 per hundredweight for milk at 3.5 percent butterfat for the month of June, a $0.87 hike compared to last month and $2.53 higher than the previous year. Class I utilization was 66.25 percent during June, an increase of 3.33 percent compared to last month and 1.47 percent above June of last year. Farm milk output is dropping sharply in Florida. Weather is full swing into the rainy season, as daily thunderstorms lead to above average rainfall in some areas. Sales were a bit lower this week. Sources do not foresee an increase until schools start in mid-August. Export milk shipments fell to 70 f.o.b. loads this week, 30 below last week. Condensed skim markets are mostly unchanged. Available supplies remain plentiful, with the bulk of the volume going to Class IV production. Class II demand shows some improvement while Class III condensed skim demand is steady. Some loads moved out of region at discount, although high transportation costs cause manufacturers to consider options. Fluid cream usage for ice cream production is steady as manufacturers continue to absorb cream supplies. Cream multiples for all Classes ranged 1.23-1.35. Last week, the CME Group Grade AA weekly average butter price was $2.5985, down $0.0134 from the previous week. Cream cheese production is adequate with expectation of seasonal increases in August. According to the DMN National Retail Report-Dairy, for July 14-20, 2017, the U.S. weighted average advertised price for a gallon of milk was $2.26, down $0.13 cents compared to last week and down $0.46 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