MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  May 15, 2013 (REPORT 20)                                                    

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 -  1.9048-2.0676                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -  1.40-1.55                       
Northeast - Class III - spot prices -  1.39-1.50                                          

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    90     0   130     0   180                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Milk production is just beyond its seasonal peak in the Mid-Atlantic region 
and is showing some marginal declines.  Northeast milk production is quickly 
building to its peak volume.  Class I demand is showing some declines as 
numerous Universities have completed their spring terms. Weather conditions 
have been optimal for field work activities in the Northeast with corn 
plantings ahead of the 5 year trend in all states.  Pastures are open with 
conditions rated as mostly good to excellent throughout the region.  Milk 
production in Florida has been fluctuating as weather conditions have 
moderated over the past few weeks.  A cool front moving through the state 
this week improved cow comfort levels and limited milk production declines.  
Class I demand improved marginally this week.  Rains in some areas of the 
state have improved pasture conditions over last week with 85% of the 
pastures this week rated as fair to good.  Producers continue to be faced 
with high hay and grain prices.  The downward trend in milk production, 
combined with the modest increase in Class I demand lowered the number of 
spot load export shipments to 90.  Milk supplies in the Southeast region 
continue to be nearly in balance with demand with only a few loads over and 
above contract minimums going to manufacturing plants.  Class I demand 
remains about level with last week.  Cream supplies continue to expand as 
milk production nears its seasonal peak.  Demand for cream remains sluggish 
as ice cream production has been limited by the cool spring weather.  Most 
cream product manufacturers have adequate cream supplies to cover their 
production schedules via their contract volumes.  Spot market activity is 
fairly light with mid to late week cream supplies having difficulty finding a 
home.  Cream multiples for all Classes are on par with last week and range 
1.10-1.27 with out of region shipments reflected at the low end of the range.  
Demand for condensed skim has marginally improved with increased spot sales 
to Class II and III manufacturers.  Class III manufacturers have increased 
their spot sale purchases as condensed skim is a cheaper nonfat solids source 
compared to nonfat dry milk.  Spot sale prices for Class III have moved 
higher this week in response to the increased demand.  A majority of the 
condensed skim volume continues to be channeled to Class IV production.  

1300C rick.whipp@ams.usda.gov