MD_DA210 DA MD DA210 Fluid Milk and Cream Review - East MADISON, WI. February 08, 2012 (REPORT 6) 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 - 1.5729-1.8276 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: Northeast - Class II - includes monthly formula prices - 1.45-1.50 Northeast - Class III - spot prices - 1.41-1.46 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 91 0 100 0 180 SOUTHEAST STATES 0 0 0 0 0 0 Manufacturing milk supplies are continuing to increase in the Northeast and Mid-Atlantic regions. The increases in manufacturing milk supplies are due to a combination of milk production increases, brought about by the mild winter weather, and sluggish Class I demand. A couple of plants are finishing maintenance projects, which should increase manufacturing capacity by week's end. What a difference a year makes, last year this week the Northeast was recovering from numerous winter storms, the Southeast was bracing for a storm coming in from the Plains and Florida milk production increases were limited by unseasonably cool weather. Milk production in Florida is still increasing, but at a slower rate than previous weeks. Minimal rainfall covered only portions of the state, causing pasture conditions to deteriorate further. Pasture conditions are now rated as 64% poor or very poor, which is a 9% increase compared to the previous week. Many pastures are not in use due to their poor condition, causing producers to increase their hay purchases and supplies. Class I demand has increased over last week. Export spot loads totaled 91 this week. The Southeast region is also experiencing milk production increases with Class I demand remaining sluggish in most areas. The additional milk supply is prompting the utilization of some auxiliary manufacturing facilities. Cream supplies are described as "sloppy" with some loads being shipped to the Central region and heavy volumes going to churns. Demand for cream continues to be weak, but may increase next week from cream cheese makers as kosher production increases, in preparation for the Passover holiday. Demand for cream from ice cream plants has increased in some areas. Cream multiples range from 110 to 120. Condensed skim supplies are heavy and significantly above year ago levels. Class II demand has increased in some areas with good pulls from yogurt manufacturers and increases in ice cream production. The heavy condensed skim supply is keeping Class IV production at increased levels. Friday's release of the Class and Component Prices for January resulted in a $1.68 decline in the Class III Skim Milk Price, which lowers the price for Nonfat Solids Price and the price for Class III condensed skim spot loads. According to NASS, ice cream production in the Atlantic region for December totaled 11.8 million gallons, 1.8% less than November, but 13.4% more than December 2010. U.S. Yogurt production (plain and flavored) for December totaled 327.9 million pounds, up 4.7% from November, but 2.1% less than for the same period last year. Cumulative 2011 production totaled 4,275.7 million pounds, 2.3% higher than 2010. 1300C rick.whipp@ams.usda.gov