MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. September 20, 2017 (REPORT 38) 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 - 3.1270-3.2966 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .45-.81 Northeast - Class III - spot prices - .47-.85 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 120 0 110 0 70 0 SOUTHEAST STATES 0 0 0 0 0 0 In the Northeast and Mid-Atlantic, farm milk production is steady. Manufacturers are comfortable with milk intake volumes, as most are able to satisfy customer needs. According to Northeast's FMMO No. 1, the average producer butterfat and protein test set new record highs for August. The average butterfat test of producer receipts was 3.76 percent, while the average true protein test of producer receipts was 3.04 percent. Bottling orders are steady for both areas of the region. In the Southeast, milk production is flat. Milk supplies available for manufacturing are little to none. Haulers are starting to see roads reopen, making it possible to transfer milk shipments to needed areas of the southernmost parts of the East. Class I demand is rebounding. Milk output in Florida remains slowed. Hot and humid conditions in the state, coupled with the lack of electricity resulting from flooding and wind damage from Hurricane Irma impede cow comfort. Meanwhile, Class I demand is up with bottling orders seeing a spike, as schools began to reopen in the aftermath of the hurricane. Retail availability is improving for fluid milk. Imported milk shipments numbered 120 f.o.b. loads this week. Condensed skim markets are steady, in good balance, as supplies move primarily through contractual arrangements. Increasing interest from yogurt manufacturers and some additional demand from ice cream exists. Cream supplies are adequate. Meanwhile, cream multiples range 1.29-1.36. Spot market transactions are steady as some manufacturers look to ramp up cream cheese seasonal production. Cream moving into ice cream is slowing seasonally. As well, some ice cream manufacturers note that inventories grew disproportionately as distribution channels for some southern markets closed on the back of Hurricane Irma. According to the DMN National Retail Report-Dairy, for September 15-21 2017, the U.S. weighted average advertised price for a gallon of milk was $2.45, down 40 cents compared to last week and down 26 cents from a year ago. MILK PRODUCTION: According to NASS, milk production in the 23 major states during August 2017 totaled 17.0 billion pounds, up 2.1% from one year ago. Eastern states' milk production are as follows: August 2017 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Florida 195 + 2.6 New York 1,273 + 1.9 Pennsylvania 911 + 2.8 Vermont 229 + 0.9 Virginia 141 + 2.9 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