MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  August 16, 2017 (REPORT 33)                                                 


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 -  3.3350-3.6555                                    

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-.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                 10     0    20     0    65     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                     

Milk production in the Northeast and Mid-Atlantic is reported flat to 
lower. Milk handlers state that volumes are generally sufficient to 
maintain bottling pipelines and processing schedules. Reports show 
declines in solids contents and butterfat levels on incoming milk.
Milk output in the Southeastern part of the U.S. is declining in many 
areas. Hot temperatures are a significant factor in the milk decline. 
Milk sales are up, with milk influxes from other regions supporting 
the fluid demand. Thus, available milk being distributed to most of 
the secondary processing plants is less than borderline. Florida's 
farm milk continues to drop. Milk rejects, while expected in 
transferring loads, are occurring in the heat of the season. Milk 
sales remain on the rise with schools opening. Import milk shipments 
total 10 f.o.b. loads this week. Distribution channels from the 
Midwest are supporting the minor deficit. Condensed skim markets are 
generally steady. Volumes are down with significant portions of 
condensed skim clearing the market in some production facilities in 
lieu of heading to the dryer. Sources report discounted loads at 30 
cents under Class for a few trades. The Eastern fluid cream market is 
little changed from the previous week. Multiples for all Classes range 
1.25-1.37. Most f.o.b. spot transactions linger in the low 1.30s, 
based on time and need. In some areas, supplies are less available 
prompting production stoppages for butter makers. However, supplies 
moving into processing are sufficient for customers' production needs. 
Surplus loads are clearing easily, as some processors take in more 
than others do. Class III production use is active, with seasonal 
heavy output of dips, and bottled cream. Ice cream pulls remain 
substantial in cream markets. According to the DMN National Retail 
Report-Dairy, for August 11-17, 2017, the U.S. weighted average 
advertised price for a gallon of milk was $3.22, up 62 cents compared 
to last week and up 73 cents from a year ago. In the Northeast, the 
weighted average price for a gallon of milk is $3.69, unchanged from 
the previous week. The gallon milk price in the Southeast was $4.19, 
with a price range of $3.99-$4.29.


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