An (almost) daily recap of dairy information: March 31, 2011
With many crop marketing analysts portraying the 2011 planting season as “acreage wars,” two of the more highly anticipated USDA reports were released on Thursday, March 31.
According to the Planting Intentions report, corn is the early leader in the battle for acreage. USDA forecasts growers intend to plant 92.2 million acres of corn in 2011, up 5% from last year and 7% more than 2009. If realized, it would be the second largest area planted to corn since 1944, behind only 2007.
Soybean planted area for 2011 is estimated at 76.6 million acres. While down 1% from last year, it would still be the third largest on record.
Based on the Grain stocks report, corn stored in all positions on March 1 was estimated at 6.52 billion bushels, down 15% from a year ago. Soybeans totaled 1.25 billion bushels, down 2% from March 1, 2010.
Estimated corn acreage came in somewhat higher than many market analysts had predicted, but corn inventories came in slightly lower. Soybean acreage and stocks estimates came in slightly lower than many forecasts.
The Planting Intentions report provided good news for dairy producers who feed cottonseed. All cotton plantings for 2011 are expected to total 12.6 million acres, 15% more than last year and increasing in every cotton-growing state.
MARKETS: Corn futures ‘limit up’ after USDA report
Closing on Thursday, March 31:
Cheddar barrels: down 1.25¢, to $1.6050/lb.
Cheddar blocks: down 0.75¢, to $1.6250/lb.
Butter: unchanged, at $2.00/lb.
Extra Grade nonfat dry milk: unchanged, at $1.80/lb.
Grade A nonfat dry milk: down 3.5¢, to $1.70/lb.
Class III milk futures: +2¢ to +20¢/cwt. through March 2012.
Corn futures: +30.0¢/bushel through September 2012.
Soybean futures: +29.0¢ to +38.2¢/bushel through September 2012.
Soybean meal futures: +$6.40 to +10.20/ton through September 2012.
AMPI sales growth continues
Sales growth continued in 2010 for Associated Milk Producers Inc. (AMPI), a dairy marketing cooperative owned by 3,000 Midwest dairy producers. More than half of the cooperative’s $1.7 billion in sales came from consumer-packaged dairy products.
Thursday: National Milk Producers Federation
In Thursday’s DairyLine broadcast, National Milk Producers Federation’s Chris Galen discusses the upcoming National Dairy Producers Conference (formerly known as the National Dairy Leaders Conference), to be held May 15-17, in Omaha, Neb.
Friday: DairyProfit Weekly
In Friday’s DairyLine broadcast, DairyProfit Weekly editor Dave Natzke reviews Thursday’s USDA Grain Stocks and Planting Intention reports. Corn is the early leader in the 20111 “crop wars.”
Beginning a career in dairy is still possible
There’s no doubt that getting started in the dairy business is not always the easiest task, but two individuals shared how it can be done. During the Professional Dairy Producers of Wisconsin annual conference in Madison, Matthew Berge and Mark Mayer explained how they were able to begin their careers using perseverance, hard work and some creative business planning.
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