MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. November 24, 2009 (REPORT 47) 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 - 1.8757-2.0130 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - 1.08-1.18 Northeast - Class III - spot prices - 1.18-1.25 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 0 96 0 60 0 50 SOUTHEAST STATES 0 0 0 0 74 0 The Thursday Thanksgiving Holiday is changing production plans and schedules in many plants. Balancing plants expect increased milk shipments beginning Wednesday, continuing through at least Saturday, as retail fluid orders drop. Closed schools and reduced late week retail fluid orders are causing the increased need for balancing plants to clear intakes. Northeast milk production is at or near the annual low point. In response to holiday-related factors, Mid-Atlantic balancing plants are increasing their churning and drying schedules. Florida's Class I demand and sales declined this week, resulting in increased volumes being channeled to ultra filtration plants. Milk production is expected to continue as a cold front moves across the state enhancing cow comfort levels. Florida exported 96 loads this week. In the Southeast Class I sales were strong through last weekend, but dropped off significantly this holiday week. Manufacturing plants will handle the excess volumes in the production of cheese and nonfat dry milk. There were no imported or exported spot loads in the Southeast. The tight cream supply loosened up early in the week and multiples declined as Class I demand dropped and most ice cream plants were shut down for the holiday week. Cream multiples are expected to increase over the weekend as manufacturing plants refill pipelines with start up orders as they ready to resume production on Monday. Condensed skim volumes have increased this holiday week and sales have picked up as some buyers are finding the pricing of condensed more attractive than NDM. According to "Milk Production" (NASS), national milk production for October 2009 in the 23 reported states totaled 14.3 billion pounds, down 1.1% from October, 2008. In the 5 listed states of the eastern region, milk production was mixed. The 5 states showed the following percentage changes in milk production from October 2008 to October 2009 and total milk production this October: Florida, - 2.7%, 142 million pounds; New York, -1.5%, 1,013 million pounds; Pennsylvania, unchanged, 862 million pounds; Vermont, -3.4%, 200 million pounds; and Virginia, +1.4%, 141 million pounds. Decreases in cow numbers from October 2008 and cows remaining as of this October are: Florida, 6,000 decline, 113,000 remaining; New York, 11,000 decline, 614,000 remaining; Pennsylvania, 10,000 decline, 539,000 remaining; Vermont, 5,000 decline, 134,000 remaining; and Virginia, 2,000 decline, 95,000 remaining. 1100c Rick Whipp rick.whipp@ams.usda.gov