THE LAND, AUGUST 9, 2013
20
Benchmark milk prices slip in California, Federal orders This column was written for the mar$14.02 at this time a year ago and comExchange, but with stocks of this magnitude; there keting week ending Aug. 2. pares to $16.20 in 2011. certainly was the potential for a much larger movement to market. Historically, this much inventory The July Federal order farm gate Class III The 4a butter-powder milk price is had cheese trading in the $1.30s.” milk price took a 64 cent dip. The U.S. $18.61, up 22 cents from June and $5.11 Department of Agriculture announced the above a year ago. The 2013 4a average is Export demand remains good, supported by promanufacturing grade price at $17.38 per now at $18.03, up from $14.55 a year ago grams like Cooperatives Working Together which hundredweight, down 64 cents from June and compares to $19.10 in 2011. accepted 14 requests for export assistance this week but 70 cents above July 2012, and equates to sell 1.2 million pounds of cheese and 947,988 July’s milk-feed ratio was unchanged to about $1.55 per gallon. That put the 2013 pounds of butter to customers in Asia, Central Amerfrom June, at 1.52, according to USDA’s Class III average at $17.69, up from $16.01 MIELKE MARKET latest Ag Prices report, but is up from 1.34 ica, Europe, the Middle East and North Africa. at this time a year ago and $17.68 in 2011. WEEKLY in July 2012. Lower monthly average milk The product will be delivered through December The Class III futures portend a turnprices, with small declines in average and raised CWT’s 2013 cheese exports to 75.7 million By Lee Mielke around in the August contract, which alfalfa hay and corn prices offset a pounds plus 61.3 million pounds of butter, 44,092 was trading late Friday morning at higher average soybean price and was pounds of anhydrous milk fat, and 218,258 pounds of $17.91. September was at $18.52; the 28th consecutive month the milk- whole milk powder to 34 countries. October, $18.52; November, $17.75; feed price ratio was below 2.0. ■ and December was at $17.24. The U.S. average all-milk price was $19.10/cwt., down June butter production totaled 141 million pounds, The Class IV price is $18.90, up 2 cents from June from $19.50 in June but up from $16.90 a year ago. according to USDA’s latest Dairy Products report, and $4.45 above a year ago. Its 2013 average now Corn, at $6.83 per bushel, was down 14 cents from down 13.8 percent from May but 2.7 percent above stands at $18.27, up from $14.84 a year ago but June, and 31 cents less than July 2012. Soybeans aver- June 2012. Nonfat dry milk output totaled 131 million compares to $19.38 in 2011. aged $15.40/bu., up 30 pounds, down 13.3 percents from June and The four-week Agricultural Marketing Service-surcent from May and 22.5 veyed cheese price used in determining the Class milk unchanged from last percent below a year ago. year. Alfalfa hay averThose holding this product apparently prices averaged $1.7142 per pound, down 6.7 cents American-type cheese, aged $209 per ton, down are not as bearish as some others in from June. Butter averaged $1.4674, down 7.5 cents. at 364 million pounds, $11 from June, but $11 Nonfat dry milk averaged $1.7272, down 6.7 cents, and the cheese business. There has been a was down 6.2 percent dry whey averaged 58.04 cents per pound, up 0.7 cent. more than July 2012. steady flow of cheese to the Exchange, from May but 1.2 percent Dairy Business California’s 4b cheese milk price was announced above a year ago. Total but with stocks of this magnitude, Update points out that by the California Department of Food and Agriculcheese production there certainly was the potential for a the Ag Price report ture at $15.65/cwt., including CDFA’s temporary amounted to 914 million much larger movement to market. shows estimated U.S. mandated price increases. The 4b price is down 26 pounds, down 3.9 percent July cull cow prices (beef cents from June, 47 cents above a year ago, but — Jerry Dryer from May and 1.4 perand dairy combined) $1.73 below the Federal order Class III price. The cent above a year ago. averaged $81.80/cwt., up 2013 4b average now stands at $15.99, up from High Ground dairy $1.50 from June’s revised estimate, and 90 cents/cwt. more than July 2012. DBU also reported that “The July broker Eric Meyer says cheese and butter output were lower than expected and nonfat dry milk was increase ended a string of three consecutive monthly sharply lower but USDA posted a major downward declines. The year-to-date average is $80.91/cwt., comrevision to May production. The “lost” powder did not pared to $82.99 for the same period a year ago.” disappear from ending stocks, he said, and was actuWith the Ag Prices report providing the final feed ally higher than May. He views the report as “somecost adjuster, USDA announced the June Milk what bullish for both cheese and butter, neutral for Income Loss Contract program payment at 21.873 whey products and potentially bearish to the NDM cents/cwt. on eligible milk. DBU adds that, based on market.” current and futures prices as of July 31, a small MILC payment (less than 10 center/cwt.) is likely the FC Stone broker Dave Kurzawski says the report • Free Stall seems to indicate there might not have been as much last for fiscal year 2013, which ends Sept. 30, 2013. milk produced in June as preliminary data showed. • Drive Thru ■ Recent hot weather reduced cow comfort and Alleys Meanwhile; cash block cheese closed the first Fripushed butterfat components seasonally lower in GANG SLATS • Post & Beams day of August at $1.7750 per pound, up 1.25 cents on most areas of the country, according to DMN. With the week, the fifth consecutive week of gain, and 6.5 the recent downturn in butterfat components, some • Because the concrete slat is the backbone cents above a year ago. Barrel closed at $1.7725, up balancing plants indicate they have few cream loads of any confinement system, you don’t want 1.25 cents on the week and 8.75 cents above a year available for clearing to the spot market. Based on to take chances with quality or fit in your ago. Six cars of block and two of barrel traded hands cream availability, cream sales into ice cream and facility. on the week. AMS-surveyed block cheese averaged soft serve mix operations are active. $1.6925 per pound, across the United States, up 0.8• To find out more, please drop us a line, or But some of that heat has since diminished and FC cent, while barrel averaged $1.7096, up 2 cents. give us a call - we’ll be happy to supply you Stone’s July 29 Insider Opening Bell stated: “Cool Stocks of cheese remain plentiful, but cheese prowith just what you need for your operation. weather throughout much of the country, heavy duction is slowing as the recent heat wave across cheese and butter stocks, and strong milk production much of the country reduced milk flows and compo- have weighed on the market, while weak global proIF IT’S PRECAST IT’S BUILT TO LAST! nent levels, according to USDA’s Dairy Market News. duction and low world dairy product stocks, particuJerry Dryer’s July 26 Dairy and Food Market Ana- larly in Oceania, have been trying to pull prices lyst said, “Those holding this product apparently are higher. The market is in an over-reactive state. When West Hwy. 40, Willmar, MN not as bearish as some others in the cheese business. it moves, it makes big moves. It is locked in a strug320-235-8527 There has been a steady flow of cheese to the See MIELKE, pg. 21
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