MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  September 27, 2017 (REPORT 39)                                              


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 -  3.0806-3.3024                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING 
PLANTS:                
Northeast - Class II - includes monthly formula prices -   .55-.85                        
Northeast - Class III - spot prices -   .60-.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                155     0   120     0    90     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Northeast milk production is down slightly. Class I orders are steady. 
Although lower milk volumes transfer into manufacturing, supplies 
appear adequate for satisfying customers' near term production needs. 
In the Mid-Atlantic, milk production is at seasonal levels. Several 
balancing plants are using this period of diminishing milk intakes to 
carry out plant maintenance projects. The Southeast farm milk output   
is steady. Class I orders are up with active demand. Supplies into 
manufacturing remains limited. In Florida, aftereffects of Hurricane 
Irma remains. Production is still taking a hit as some cows remain out 
of cycle. Fluid supplies are looking to rebound, as sales surge from 
strong areas demand. Milk handlers see things returning to normal as 
stores regain power and shelf restocking occurs. Import milk shipments 
total 155 f.o.b. loads. In general, cream supplies are fairly 
balanced. Spot loads of cream are moving at multiples ranging 1.25-
1.34. Industry contacts advise that upper and lower limits of the 
range are the result of various plants having maintenance issues, 
which influence available supplies. Condensed skim offerings in the 
spot market are limited, but supplies are adequate for near term needs 
of customers while market participants note a significant drop in 
surpluses. Primarily, distribution is in local channels, with a few 
shipments to outside regions. Trucks have become more available in the 
aftermath of Hurricane Irma and tends to lower market shipping costs. 
With the announcement of October's Advanced Prices, the Class II 
Nonfat Solids price declined $0.0211, compared to the previous month.

According to the DMN National Retail Report-Dairy, for September 22-28 
2017, the U.S. weighted average advertised price for a gallon of milk 
was $2.54, up 9 cents compared to last week and up 22 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