An (almost) daily recap of dairy information: April 4, 2011
February dairy products
USDA’s Dairy Products report estimated February 2011 butter production at 150.1 million lbs., down 9.8% from January 2011, but 6.4% more than February 2010.
Total cheese output was estimated at 807.1 million lbs., down 9% from January, but 4.1% more than a year ago.
Total Italian type cheese, at 352.2 million lbs., was down 9.3% from February, but up 6.6% from a year ago. Mozzarella cheese output totaled 274.2 million lbs., down 11% from January, but 5.8% more than a year earlier.
American type cheese production was estimated at 328.8 million lbs., down 8.5% from January, but 2.6% more than a year ago. Cheddar production totaled 242.9 million lbs., down 11.6% from January and 0.6% less than February 2010.
Nonfat dry milk output, at 109.6 million lbs., was down 6.4% from January 2011 and 6.9% less than a year ago.
USDA’s March 1 Grain Stocks report revealed a surprisingly small inventory of corn. The smaller-than-expected inventory implies consumption during the second quarter of the 2010-11 marketing year progressed at a rate that cannot be sustained by available supplies, according to University of Illinois ag economist Darrel Good.
MARKETS: Cheese continues spring slide
Closing on Monday, April 4:
Cheddar barrels: down 2.0¢, to $1.5525/lb.
Cheddar blocks: down 1.75¢, to $1.5775/lb.
Butter: down 2.0¢, to $1.97/lb.
Extra Grade nonfat dry milk: unchanged, at $1.80/lb.
Grade A nonfat dry milk: down 2.0¢, to $1.68/lb.
Class III milk futures: -38¢ to -3¢/cwt. through January 2012.
Corn futures: +8.0¢ to +24.4¢/bushel through September 2012.
Soybean futures: -9.6¢ to +1.0¢/bushel through September 2012.
Soybean meal futures: -$4.00 to +1.70/ton through September 2012.
Tuesday: Gould market review
In Tuesday’s DairyLine broadcast, University of Wisconsin-Madison dairy economist Dr. Brian Gould said the current slide in cheese prices was anticipated, but he was hesitant to predict how low it will go. Looking at the futures prices on Class III milk, butter and dry whey, Gould said “either the cheese value has to come up or those futures have to come down, because there seems to be a disconnect of about 10¢ or 15¢ over the near term over what the current cash market is.” Gould also said he was surprised butter prices were dropping, given that stocks are fairly low. To read the DairyLine broadcast comments, visit www.dairyline.com under “Today’s Dairy News.” Or, listen to the conversation with DairyLine’s Lee Mielke by clicking on “DairyLine Daily Broadcast.”
It’s common to use cool-season grasses to establish a new alfalfa stand in the East. According to Ev Thomas, that requires different management strategies when incorporating Roundup Ready alfalfa in your forage rotation.
Staff changes, award winners and other newsmakers
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