This week in Dairy Profit Weekly:
1) WASDE milk: USDA’s World Ag Supply & Demand Estimates report, issued April 8, slightly lowered 2011 projected milk marketings. Forecasts on the price side was mixed, with expected butter and cheese prices lowered, but NDM and whey price forecasts raised. As a result, the Class III price forecast was lowered; the Class IV and all milk price forecasts were raised.
2) WASDE feed: On the feed side of the ledger, the WASDE report left projected U.S. corn ending stocks, and there were no changes in the U.S. soybean meal supply and demand projections.
3) LGM-Dairy out of money: Funding provided for the fiscal year 2011 Livestock Gross Margin-Dairy (LGM-Dairy) program is used up. The March 25-26 sales period closed within hours after total underwriting capacity was reached. Supplemental funding will require congressional authority, and producer and processor groups have urged action.
4) DPW Trends: With escalating futures prices for feedstuffs and declining futures prices for milk, some forecasters are beginning to project Milk Income Loss Contract (MILC) payments beginning in July 2011. Regional reporters noted corn prices in the parts of the Southeast (FOB) and West (delivered) surpassed $8.50/bushel as of April 6-7, with Pacific Northwest (delivered) prices above $9.00/bushel.
5) DPW Washington: The Senate joined the House in calling for repeal of a tax reporting provision contained in last fall’s health care reform law. That provision required businesses, including dairy farms, to file an IRS 1099 form on any company they did more than $600 worth of business in a year.
Dave Natzke, Editor
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