An (almost) daily recap of dairy information: Feb. 24, 2011
If they haven’t been in the market for a while, dairy producers looking for land may be in for some sticker shock, based on quarterly surveys from Federal Reserve Bank district lenders. Minneapolis, Chicago and Kansas City district lenders said 2010 farmland values increased 10%-15%, with more moderate increases reported in the Dallas district. High commodity prices and demand for farmland drove the trend, and interest rates on most variable loans declined from the previous quarter.
USDA raised its quarterly forecast for fiscal year (FY) 2011 dairy exports due to rising global unit values and increased export volumes to Mexico and Asia. Based on the February 2011 outlook report, FY ’11 dairy exports will be about $3.7 billion, up from $3.2 billion in the November 2010 outlook, and up from the actual FY ’10 total of $3.37 billion.
FY ’11 U.S. dairy and cheese import forecasts were raised about $200 million from Novmber 2010 estimates, to $2.7 billion and $1.0 billion, respectively.
Total FY ’11 ag exports are forecast at $135.5 billion, up $26.8 billion from final FY ’10 exports. FY ’11 ag imports are forecast at $88.0 billion, up about $9.0 billion from the FY ’10 actual.
Barrels, butter rise; April-May 2011 Class III futures lose $1/cwt. in 2 days
Closing on Thursday, Feb. 24:
Cheddar barrels: up 1.0¢, to $1.9500/lb.
Cheddar blocks: unchanged, at $1.9850/lb.
Butter: up 0.5¢, to $2.01/lb.
Extra Grade nonfat dry milk: unchanged, at $1.80/lb.
Grade A nonfat dry milk: unchanged, at $1.8325/lb.
Class III milk futures: lower, -2¢ to -58¢/cwt. through January 2012.
Corn futures: -10.2¢ to -3.6¢/bushel through December 2012.
Soybean futures: -9.4¢ to -1.6¢/bushel through November 2012.
Soybean meal futures: -$3.30 to -$1.20/ton through December 2012.
Friday: DairyProfit Weekly
One of the recommendations from USDA’s Dairy Industry Advisory Committee asks USDA to research what impact establishing higher national total solids standards in fluid milk would have on milk consumption, prices and farm income. In Friday’s DairyLine broadcast, Dairy Profit Weekly’s Dave Natzke reviews a recent study, commissioned by the California Milk Advisory Board, which may support that idea.
• Indiana regional dairy meetings planned in March
• Minnesota NMI participants sought
• ISDA to Award College Scholarships
• Anaerobic digester operator training program offered in Wisconsin
• Conservation tillage conference March 9-11
• Dairy Herdsman Short Course set April 26-28
• CV Water Board sends out 60 monitoring well notices to area dairies
• Rubes cartoonist will entertain at Western United Dairymen conference
• AJCA names 40 to Jersey Youth Academy in Ohio
• Budge crowned 2011 Oregon Dairy Princess-Ambassador
• National DHIA awards scholarships to 24 students
• Virtus Nutrition launches first iPad dairy app
• Funding reason for delay in Idaho Livestock, Enviro Studies Center
Check for daily DPW news updates at www.dairybusiness.com.
For a sample copy of Dairy Profit Weekly, or subscription information, visit www.dairyprofit.com or phone: 800-334-1904, ext. 244.
Dave Natzke, Editor