MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. October 11, 2017 (REPORT 41) 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 - 2.9003-3.1109 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - .65-.85 Northeast - Class III - spot prices - .60-.88 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 85 0 80 0 110 0 SOUTHEAST STATES 0 0 0 0 0 0 In the Northeast and Mid-Atlantic, manufacturing milk supplies are steady with a marginal increase in some areas. A few plant managers are catching up on maintenance while milk supplies are lighter. Milk production varies. Generally, production is flat for both areas. Class I demand is steady. Production in the Southeast and Florida is showing improvements as cows are beginning to freshen. Fluid milk sales are down slightly in both areas. Very little surplus milk is available for manufacturing. Import milk shipments totaled 85 spot truckloads this week, 5 loads above the previous week. Buyers of cream are tracking the butter market closely while limiting their spot cream purchases, hoping for further declines in the butter market, which would lower cream prices. However, market sources report numerous last minute purchases occurring. Therefore, brokers express uncertainty of what to expect from the market. Cream multiples this week range 1.24-1.33. Cream cheese production is exceptionally active. Condensed skim interest is increasing intermittently as volumes move primarily through contracts. Class II is driving demand as holiday production expands. According to the DMN National Retail Report-Dairy, for the period of October 6-12, 2017, the U.S. weighted average advertised price for a gallon of milk was $2.97, up 31 cents compared to last week and up 59 cents from last year. The average retail survey price for half gallon pack size was $3.50, $2.04 higher than last week and up $1.85 from the previous year. DAIRY PRODUCTS: According to NASS, August 2017 U.S. hard ice cream production totaled 74.2 million gallons, 4.9 percent more than last month and 1.5 percent more than a year ago. Cumulative 2017 U.S. production through August translated to 554.1 million gallons, 1.4 percent less than the previous year total through August. Meanwhile, the Atlantic region's hard ice cream production totaled 17.2 million gallons, 0.2 percent above a year ago and 5.0 percent higher than the last month. U.S. yogurt production (plain and flavored) for August 2017 totaled 388.1 million pounds, up 13.4 percent from last year, but down 2.8 percent from the previous month. 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