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THE LAND, FEBRUARY 28, 2014
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U.S. corn prices rise along with export expectations MIELKE, from pg. 3B when the prices fall, as we know they will. The first quarter Class I average stands at $22.38/cwt., up from $18.33 at this time a year ago, $17.38 in 2012, and $16.44 in 2011. The two-week National Dairy Products Sales Report averages used in calculating the Class I value showed butter at $1.8476 per pound, up 25.4 cents from February. Nonfat dry milk averaged $2.0718, up 4.5 cents. Dry whey averaged 62.38 cents, up 3 cents, and cheese averaged $2.3213, up 29.1 cents from February. Cash traders were busy analyzing the latest Milk Production and Slaughter reports and anticipating the afternoon’s January Cold Storage report Friday morning, Feb. 21. Cash cheese prices reversed two weeks of losses. The blocks closed the President’s Day holiday-shortened week at $2.1625/lb., up 5.75 cents on the week
and 53.5 cents above a year ago. The barrels closed at $2.1575,up 9.5 cents on the week and 52.75 cents above a year ago. Only two cars of block and eight of barrel traded hands on the week. The NDPSR-surveyed block price hit $2.3216/lb., up 4.4 cents. Barrel averaged $2.3244, up 2.3 cents. Butter closed Friday at $1.7850, up 1.5 cents on the week and 19.5 cents above a year ago. Seventeen carloads were sold on the week. NDPSR butter averaged $1.8595, up 2.2 cents. Cash Grade A nonfat dry milk closed at $2.0450, up 2.5 cents. NDPSR powder averaged $2.0766, up 0.8 cent. Dry whey averaged 62.83 cents, up 0.8 cent. The USDA’s latest Livestock, Dairy, and Poultry Outlook predicts that milk supplies will increase in 2014 as a modest herd expansion is forecast for the second half of the year. Yield per cow was forecast to rise year-over-year,
but no change was made in the February forecast from January. Exports remain strong, but higher milk production, both domestically and globally, could pressure prices later in 2014, according to the Outlook. The most recent USDA World Agricultural Supply and Demand Estimates report raised the 2013-14 season-average price of corn to $4.20 to $4.80 per bushel. Higher expected exports lie behind the price rise; global trade and strong export sales support increased U.S. corn exports. Similarly, a higher export forecast for soybean meal supports the advance in prices from January to $425 to $465 per ton. The outlook for forages appears steady, as January preliminary alfalfa prices are reported in January Agricultural Prices at $185/ton, down from $187 in December and well below the January 2013 price. This year’s feed prices should be lower than last
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year, the USDA said. ■ The February dairy cow forecast was raised fractionally from January to 9.26 million head. Sharply higher yearover-year springer prices, combined with flat heifer calf prices, suggest some short-term herd expansion, though there may be caution on the part of producers toward a longer term expansion. The USDA predicts the expected feed and milk prices will push the calculated milk-feed price ratio to the highest in several years. Milk yield was unchanged from January at 22,230 pounds per cow. However, year overyear, milk yield is expected to increase by 1.9 percent from 2013. The Outlook also showed increased projections for 2014 Class III and Class IV milk prices from last month’s report. The first quarter Class III price was pegged at $21.30/cwt., up from the See MIELKE, pg. 5B
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