MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  October 04, 2017 (REPORT 40)                                                


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 -  2.9900-3.2052                                    

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                 80     0   155     0   110     0                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

In the Northeast, farm milk volumes are flat. Class I demand is 
unchanged to marginally higher as first of the month orders fill 
school pipelines. Milk shipments to some Southern states continue. 
Mid-Atlantic milk production is a little lower and in balance. A 
number of milk handlers are working through maintenance schedules, 
but able to easily handle current bottling demand. Farm milk output in 
the Southeast shows a small drop. Additional milk is moving into the 
area due somewhat to seasonal demand from bottling. Most southeast 
manufacturers are operating well below capacity due to the milk 
deficit. In Florida, as transportation changes back to normal, the 
weather is cooling and is expected to drive milk production upwards. 
But for now, Hurricane Irma's impact continues to hamper milk output 
levels. As a result, milk import shipments continue into the state but 
volumes did decline significantly, to 80 f.o.b. loads, as milk sales 
decreased. Overall, cream orders are steady to regular customers and 
supplies remain adequate for most processing needs. Plants that have 
the option to sell cream or churn butter continue to find demand for 
the cream.  Multiples appear steady, 1.25-1.34, as spot sales help to 
drive up the price of cream. Usage is fairly balanced across cream 
based products. The DMN September 2017 monthly average f.o.b. price 
for Northeast Class II cream was $3.2812, compared to $2.6256 a year 
ago. Condensed skim interest is seasonally fair. Most supplies are 
moving through contracts. The DMN September 2017 monthly average price 
for Northeast Class II condensed skim was $0.6663, compared to $0.8114 
a year ago. The Class III condensed skim price was $0.6875, compared 
to $0.8333 a year ago. According to the DMN National Retail Report-
Dairy, for the period of September 29-October 5, 2017, the U.S. 
weighted average advertised price for a gallon of milk was $2.66, up 
$0.12 compared to last week, while down $0.82 from last year. The 
average retail price for half gallon pack size was $1.46, down $1.12 
from last week and down $1.97 from last year. 


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