MD_DA210

     Fluid Milk and Cream - Eastern U.S.

     Report 50 - Released on December 12, 2018

     Northeast milk production is relatively flat this week. Class I sales are fairly level this
     week, yet Class II sales increased due to the final push for holiday production needs.
     Balancing capacity is available. There are little to no reports of tolling or cream
     separation in the region currently. Mid-Atlantic milk production is fairly flat. Milk
     availability is somewhat limited, due to other regions' needs. There is capacity in many
     operations currently, but there are some expectations of more milk becoming available around
     the holiday. Southeast milk output is level to somewhat lower this week. Winter storms have
     negatively impacted areas of the region. There are some reports of hauling issues and power
     outages. Class I demand is stable, as milk continues to be transported to the Southeast from
     neighboring regions. Florida milk production is climbing at a steady rate currently. Weather
     conditions have cooled down in the area. Class I sales are strong, yet there are
     expectations of sales dropping off next week due to schools letting out for the holiday.
     Market participants report continuing to receive an unusual number of extra milk loads from
     other regions. Cream multiples decreased this week, currently ranging 1.22-1.35. Market
     participants are purchasing cream at lower prices for Class II and IV production needs. Some
     manufacturers are offering cream on the spot market at this time. Cream is available in the
     region and sellers are able to cover their contracted orders this week. Condensed skim
     market conditions are fairly steady this week. Market participants report some balancing
     operations are focused on filling weekly orders this week. However, some contacts report
     more milk is clearing into manufacturers' dryers at this time. Spot market activity is
     steady to quiet.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 12/7/18
     to 12/13/2018

     Half Gallon, All Fat Tests
                       Weighted Average Price
     National    This Period    Last Week   Last Year
      Organic       $3.71         $4.38       $3.52
      Conventional  $2.33         $2.18       $2.23

     Regional (Conventional)
                   Wtd. Ave.       Low         High
      Northeast     $3.99         $3.99       $3.99
      Southeast     $2.50         $2.50       $2.50

     Northeastern U.S., F.O.B. Condensed Skim
     Price Range - Class II; $/LB Solids:         0.80 - 0.90
     Price Range - Class III; $/LB Solids:        0.75 - 0.84


     Northeastern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.2200 - 1.3500
     Price Range - Class II; $/LB Butterfat:      2.7230 - 3.0132


     Information for the period December 10 - 14, 2018, issued weekly

     Secondary Sourced Information:

     With last Wednesday¶s announcement of the Class and Component Prices, the Class III Skim
     Milk price decreased $1.07, compared to the previous month.

     Dairy Products Report - Ice Cream, Regular, Hard
     Released December 4, 2018, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Ice Cream, Regular (Hard) Production ± States and United States: October 2017 and 2018
                                     Monthly Production (1000 pounds)    Percent Change from
     Total  Cream, Regular (Hard       October   September   October       October  September
     Region                               2017        2018      2018          2017       2018
     United States                      56,616      59,019    60,526           6.9        2.6

     Atlantic                           13,417      13,009    14,817          10.4       13.9
       Pennsylvania                      3,560       1,693     3,353          -5.8       98.1

     Central                            31,673      35,104    34,737           9.7       -1.0
       Missouri                          2,455       3,088     2,465           0.4      -20.2
       Ohio                              2,127       2,092     2,247           5.6        7.4

     West                               11,526      10,906    10,972          -4.8        0.6
       California                        6,603       5,407     5,367         -18.7       -0.7
       Oregon                              970       1,090     1,091          12.5        0.1
       Utah                              2,093       2,242     2,316          10.7        3.3

     Ice Cream, Regular (Hard) ± Cumulative Production January - October
                       Cumulative Production   Percent Change
                           (1000 pounds)            from
     Report Month          2017        2018         2017
     October            666,524     638,006         -4.3
     Published by:
     Dairy Market News - Madison, WI
     JESSICA MUELLER, 608-422-8589
     Email: Jessica.Mueller@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home