MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  August 2, 2017 (REPORT 31)                                                 


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 -  3.4249-3.6093                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -   .30-.80                        
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     0     0    50     5     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                   
                                                                                          
Warmer than normal temperatures and precipitation has influenced milk 
production throughout the East region. Fluid milk sales are expected 
to spike as schools are set to restart. In the Northeast, sources 
noted that fewer discounted loads are transferring, with the 
diminishing milk production. Mid-Atlantic milk output, at the farm 
level, is seeing declines as lesser volumes move into balancing. In 
general, manufacturers are in good shape as supplies are well 
balanced. Milk handlers in the Southeast, report that milk production 
levels are providing for little to no milk into manufacturing. As a 
result, milk loads are being shipped in from the Southwest. Drop offs, 
have been attributed to the consistent hot temperatures. Also, Class I 
needs are pulling on available milk supplies as school pipelines are 
being filled and replenished from summer break. This week, along with 
the hot temperatures, Florida saw some heavy precipitation as tropical 
storm Emily produced a lot of rain. Hence, milk output remains in a 
steady decline and the wet conditions are likely to accelerate the 
falloff in production. Class I milk sales are up this week as schools 
prepare to open the first week of August. Milk distributors report no 
export shipments this week as milk surpluses diminish from the market.
The volume of condensed skim that saturates the market is shrinking. 
However, supplies remain readily available as loads from the region 
ship to buyers across country. Spot prices remain steady, with the 
majority of condensed skim sales at the high end of the spot pricing 
range. Dryer operations are busy clearing loads, along with moderate 
Class II usage. Cream markets are showing some firmness. In general, 
cream supplies are lighter, but sources noted extra volumes filtered 
into regional markets as a few cream based plants are offline. Cream 
multiples trudged higher, 1.30-1.37, in the East region. According to 
the DMN National Retail Report-Dairy, for July 28-August 4, 2017, the 
U.S. weighted average advertised price for a gallon of milk was $2.43, 
unchanged compared to last week, but down 23 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