26 A
Benchmark milk price reverses five months of gain
THE LAND, DECEMBER 14, 2012
This column was written for the marketing week ending Dec. 7. Farm milk prices have peaked for 2012. The U.S. Department of Agriculture announced the November federal order benchmark Class III price Wednesday at $20.83 per hundredweight, down 19 cents from October but still $1.76 above November 2011, a whopping $2.35 above California’s
comparable 4b cheese milk price, and the highest November price ever. It equates to about $1.79 per gallon. The 2012 average, now at $17.33, is down a dollar from this time a year ago and compares to $14.46 in 2010 and a disastrous $11.03 in 2009. Look for a big drop ahead. The December Class III futures contract was trading late Friday morning at $18.50. January was at $17.90; February, $17.99; March, $18.22; and April at $18.32. The
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November Class IV price is cent soybeans and 41 per$18.66, up 12 cents from cent alfalfa hay. At $22.10, October and 79 cents above the preliminary November a year ago. U.S. average all-milk price equals a record high set last The Agricultural MarketAugust, according to the ing Service-surveyed cheese DPW. price averaged $2.0146 per pound, down 3.3 cents from Average corn ($6.71 per October. Butter averaged bushel) and soybean $1.8410, down 7.6 cents. ($13.80/bu.) prices were the MIELKE MARKET Nonfat dry milk averaged lowest in five months, but WEEKLY $1.5143, up 5.1 cents, and dry alfalfa hay prices ($215 By Lee Mielke dry whey averaged 64.8 per ton) returned to the cents up 2.8 cents. 2012 high set last May. The USDA says the California’s November average annual milk4b cheese milk price is feed price ratio was 1.88 $18.48, down 95 cents from October but in 2011 and 2.26 in 2010. $1.29 above a year ago. That put its 2012 average at $15.47, down $1.01 ■ from a year ago and $2.22 above 2010. The cash cheese market was mixed The 4a butter powder price is $18.27, the first week of December. The 40up 31 cents from October and 57 cents pound blocks closed the first Friday of above a year ago. Its 2012 average is the month at $1.76/lb., unchanged on $15.46, down $3.56 from a year ago but the week but 10.5 cents above a year 64 cents above 2010. ago. The 500-pound barrels closed at ■ $1.66, down 5.25 cents on the week, 8.75 cents above a year ago when they Dairy Profit Weekly reported that a plunged 14 cents to $1.5725, but are 10 record-tying U.S. average milk price cents below the blocks. Only five cars of wasn’t enough to drastically improve barrel were sold on the week. the monthly milk-feed price ratio, but November’s index did represent the The AMS-surveyed, U.S. average fifth consecutive month of small block price lost 7.7 cents, hitting improvements, according to the USDA’s $1.9197, while the barrels averaged latest Ag Prices report. $1.8373, down 7.9 cents. The higher milk price, combined with Cheese plants were busier as extra slightly lower corn and soybean prices, manufacturing milk was available over helped push the preliminary November the Thanksgiving holiday and long milk-feed price ratio to 1.79, the high- weekend, according to USDA’s Dairy est since last December. However, it Market News. The lower cheese prices remains below a year ago, and marks have buyers ordering to refill store the 20th consecutive month below 2.0. shelves after the holiday. Retail sales were reported as good. Recent price The index is based on the current milk price in relationship to feed prices declines also helped spark interest into for a ration of 51 percent corn, 8 perSee MIELKE, pg. 27A
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