MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  May 22, 2013 (REPORT 21)                                                    

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 -  1.8898-2.0499                                    

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   110     0    90     0   180                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

Milk production is nearing the seasonal peak in the Northeast region and may 
well plateau as weather conditions are near perfect for milk production.  
Planting schedules are ahead of the 5 year average in the region and over 60% 
of the pastures are rated as good or excellent.  Some frost was noted early 
in the week, but no assessment was made of the damage to crops.  Rains are 
needed, now that a majority of the crops have been planted.  Milk production 
in the Mid-Atlantic region is just beyond the seasonal peak.  Manufacturing 
milk supplies for both regions will be heavy going onto the holiday weekend.  
Milk production in Florida has declined as the weather has turned hot and 
humid, lowering cow comfort levels.  Class I demand has dropped as schools 
are beginning to close.  The decline in fluid demand pushed the number of 
export spot loads to 110 this week.  The coincidental occurrence of the 
Memorial Day holiday weekend and numerous school closings for summer break, 
have brought about a significant increase in manufacturing milk supplies in 
the Southeast region.  Nearly all available auxiliary manufacturing plants 
are receiving moderate to heavy volumes of milk.  Cream supplies remain heavy 
in the East prior to the holiday weekend.  Demand for cream significantly 
improved early in the week with good pulls from bottling plants, ice cream 
manufacturers and cream cheese plants.  Late week orders are very light in 
front of the holiday and are necessitating discount pricing and shipment out 
of region in order to find a home.  Cream multiples for all Classes are on 
par with last week and range 1.10-1.28 with out of region shipments reflected 
at the low end of the range.  Demand for condensed skim improved again this 
week with increased spot sales to Class II and III manufacturers.  Most Class 
III sales moved out of region, while Class II stayed in region.  Though 
condensed skim spot sales increased, a majority of the condensed skim volumes 
continue to be channeled to Class IV production.  According to NASS, milk 
production for April 2013 in the 23 reported states totaled 16.1 billion 
pounds, up 0.3% from April 2012. Milk production decreased in 1 of the 5 
listed states in the Eastern region with 2 states increasing and 2 states 
unchanged from a year ago.  Eastern region production increased 0.7% compared 
to the same month last year to 2,630 million pounds. The 5 states showed the 
following percentage changes in milk production from April 2012 to April 2013 
and total milk production this April: Florida, -2.7%, 215 million pounds; New 
York, +1.7%, 1,138 million pounds; Pennsylvania, unchanged, 904 million 
pounds; Vermont, +1.9%, 220 million pounds; and Virginia, unchanged at 153 
million pounds.  Due to sequestration, no information on the number of cows 
or milk per cow was released by NASS. 

1300C rick.whipp@ams.usda.gov