MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. August 30, 2017 (REPORT 35) 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 - 3.3963-3.6053 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .60-.81 Northeast - Class III - spot prices - .59-.74 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 80 0 10 0 95 0 SOUTHEAST STATES 0 0 0 0 0 0 It is necessary to mention, in the East fluid milk and cream report that milk producers in the Southwest worked in advance to restrict the risk of loss, due to Hurricane Harvey, relative to weekly milk volumes moving out of the area into the Eastern region. Eastern school lunch pipelines continue to be filled as more schools are re-opening. In general, milk production in the East is steady to lower. Northeast and Mid-Atlantic handlers are identifying milk output as mostly flat. Meanwhile, intermittent cool conditions covered a few areas. With that in mind, handlers expect to log a marginal bump in milk output. At this point, intakes for manufacturers are adequate. However, balancing plant managers report lower to tight supplies into processing. In the Southeast, milk from the farm is stable. Sources note that loads out of the Southwest, which have in past weeks supported milk deficits in the area are still available. Hurricane Harvey did not disrupt this pipeline. In addition, Southeast milk handlers have access to added supplies for strong bottling demand with a few loads transferring from a Mid-East plant that is down. Production from manufacturing is sluggish, as limited milk volumes move into plants. Florida's need for milk continues to grow, as production is declining to steady in some areas. Import volumes are lower than a year ago at this time. This week, the state imported 80 f.o.b. spot loads of milk. Class I demand is showing signs of some weakness. Condensed skim markets are a little unsettled as September brings a lower Class II milk price. With the announcement of September 2017 Advanced Prices and Pricing Factors, the Class II Nonfat Solids price declined $0.0245 compared to the previous month. Lighter milk receipts at some plants are reducing condensed skim offerings. Cream availability is steady. However, some contacts feel that there will be some extra volumes on hand during the approaching Labor Day holiday weekend. Demand for cream is fairly good, as cream multiples for all Classes range 1.30 to 1.38. Prices for most transactions are somewhat stable to lower as the CME butter price withdrew slightly last week. According to the DMN National Retail Report-Dairy, for August 25-31, 2017, the U.S. weighted average advertised price for a gallon of milk was $2.36, up 12 cents compared to last week, but down 1 cent from a year ago. In the Northeast, the weighted average price for a gallon of milk is $2.99, up 63 cents from the U.S. average, with most prices at $2.99 based on the most recent retail market survey. 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