Dairy Star • Second Section • Saturday, February 22, 2014 • Page 7
Dairy Star • Second Section • Saturday, February 22, 2014 • Page 11
Market Reports Daily Dairy Report Summary
Feb. 19, Grain Markets 12.94
LitchÀeld Cargill
4.18
12.94
Pipestone, MN Cargill
4.15
12.92
Elrosa, MN Elrosa Feed & Grain
4.06
12.93
Garretson, SD Eastern Frmrs Co-op
4.12
12.84
Ostrander, MN Cenex Harvest States
4.29
12.84
GarÀeld, MN Pro-Ag Frmrs Co-op
3.99
12.79
Winona, MN Cenex Harvest States
4.34
13.23
Monona, IA Innovative Ag
4.34
12.89
Watertown, SD Watertown Co-op Elevator
4.03
12.65
Glenwood, MN Prairie Lakes Co-op
3.94
12.73
Morris, MN Johnson Feed & Grain
4.05
12.80
Durand, WI Countryside Cooperative
4.13
12.78
Dennison, MN Interstate Mills
NA
Westby, WI Heartland Country Co-op
4.19
was $678/MT, or 31 cents, higher than Dairy America product. Looking forward, another U.S. dairy cooperative, Land O’Lakes, will join India- based Amul, Europe’s Arla and Euroserum, and Fonterra to sell SMP. Land O’Lakes is expected to offer SMP in March and then butter later in the year.
All dairy product prices, except for buttermilk powder, were lower at today’s Global Dairy Trade (GDT) auction. The GDT index fell 1.2% vs. the prior biweekly auction. The milk protein concentrate index posted the largest decline of 5.4%, followed by anhydrous milkfat and butter, down 4.5% and 3.8%, respectively. It should be noted that while prices are lower than the previous auction, they remain at historically high levels. Dairy America’s unsalted sweet cream butter settled at $4,175/ metric ton (MT), or $1.85/lb., for March delivery. The April contract closed higher at $4,265, or $1.89/ lb., a 21-cent discount to Fonterra’s butter. Skim milk powder (SMP) and whole milk powder (WMP) indices were modestly lower at $4780 and $4,999/MT, respectively. Dairy America offered product in each contract month from March through August 2014. Settlement prices for low-heat, regular SMP, supplied by Dairy America, ranged from a low of $4,375 in March to a high in April at $4,480, and then tapering to $4,385/MT in August. Dairy America’s medium-heat SMP prices closed at the same price level as low- heat SMP for the April through June contract periods. Comparable Fonterra medium-heat powder on average
3.95
4.00
S. Wheat 7.06
3.65
S. Wheat 6.99 W. Wheat 7.06
Feb 19 -Milk Powder Demand and Prices Hold Firm
APR through OCT nonfat dry milk (NDM) futures closed limit up today, or 4¢ higher than yesterday’s settlements. CME spot NDM was bid 1.25¢ higher. Strength in the powders market is particularly impressive given reports of increased production around the globe. Milk production is particularly strong in Western Europe, where processors are converting huge volumes into powders. December milk output in the EU-28 was up 4.6% compared to a year earlier. USDA’s Dairy Market News reports that as the European Union enters its spring Áush, milk volumes are expected to overwhelm drying facilities, despite expanded drying capacity.Season to date, output in New Zealand is 5.4% ahead of a year ago. According to USDA’s GAIN: New Zealand Dairy Sector Mid-Season Update, full-season milk production volumes will likely exceed the 2012-13 production season by 7% to 9%. Milk powders promise better returns than other dairy products for
New Zealand processors, so increased milk production generally means additional milk powder output in Oceania. Indeed, Fonterra has continually increased its forecast for the volume of milk powders it intends to offer at the Global Dairy Trade auction over the next 12 months. U.S. milk production has grown only slightly, but output has been strong in the Southwest. Severe drought will likely shorten forage supplies in the region later this year, but for now cows are warm and comfortable in dry pens, and production per cow is excellent. Much of the excess milk will be dried and exported. Seasonal declines in Áuid milk demand have also freed up more milk for driers in the heart of the country. The fact that milk powder prices have held at historically high levels despite widespread gains in global milk powder production implies that demand is outpacing supply growth. According to Dairy Market News, milk powder buyers are showing some resistance to rising spot prices. However, buyers are quick to emerge at the Àrst sign of any decline in the milk powder market. To subscribe to the complete Daily Dairy Report via e-mail visit www.dailydairyreport.com
January Milk Prices Class III $21.15 (+$2.20) Class IV $22.29 (+$0.75)
13.07
While we trust the information, gathered from reliable sources, is reasonably accurate, we cannot guarantee its accuracy or completeness.
Class III Milk Options Sett
Feb 19 - Markets Closed Feb 18 - GDT Declines Led by MPC
(CME closing prices Feb 19, 2014) Strike
he r
4.28
Ot
Soy
Sanborn, MN ADM
Oa ts
Co rn
bea
ns
written by Mary Ledman, Sara Dorland, Sarina Sharp and Karen Endres
Strike
Call
Sett
Put
Class III Milk Futures
(CME closing prices Feb 19, 2014) Jan Feb
Feb
23.25
0.02
23.00
0.02
Mar
21.50
0.28
21.25
0.31
Apr
20.75
0.62
20.50
0.70
May
19.75
0.84
19.50
0.79
June
19.50
0.87
19.25
0.89
July
19.25
0.87
19.00
0.95
Aug
19.00
0.93
18.75
0.93
Sept
18.75
0.95
18.50
0.89
Oct
18.50
0.92
18.25
0.87
Nov
Nov
18.25
0.90
18.00
0.89
Dec
Mar Apr May June July Aug Sept Oct
Feb 19
Feb 12
Feb 5
23.14
23.10
23.08
22.91
21.33
20.81
20.83
20.96
20.53
19.65
19.62
19.80
19.69
19.14
18.95
19.15
19.35
18.95
18.80
18.88
19.03
18.84
18.75
18.70
18.87
18.68
18.61
18.47
18.70
18.58
18.63
18.35
18.43
18.29
18.27
18.09
18.13
18.04
17.94
17.90
17.85
17.81
17.74
17.72
20.93
Jan 29
21.06
CME Spot Cheddar Cheese & Butter Market Summary
Feb 19
Butter Blocks Barrels
Settle 1.7700 2.1075 2.0675
Change NC NC NC
Trades 0 0 0
Butter Futures (Cash Settle) Change NC +0.500 -0.300
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February Tues., Feb. 25th Fri., Feb. 28th
Conveyors
SALE DATES: Special Feeder Sale
- Along with regular sale
Horse Sale
- Starting with tack at 5 p.m. with horses to follow
March Tues., March 4th Special Feeder Sale
- Along with regular sale
Belt
Settle 184.000 179.500 174.200
Month Feb Mar May
Bottom & Top Delivery
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2794 Brumbaugh Road • New Enterprise, PA 16664
814-766-2246
All Poly & Treated Wood
Fri., March 7th
Please consign your cattle as early as possible! Thank You!!!
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