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dfa today: friday (2)

DFA Today: Friday, March 24, 2017

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March 24, 2017

News


EU milk production update

According to provisional estimates released by the European Commission, the European Union (EU) produced 27.3 billion pounds of milk in January among its 28 member countries. This was down 2.3 percent (641 million pounds) from the prior year.

The most significant declines occurred in Germany and France, the top two largest milk-producing countries in the EU. January milk production in Germany and France declined 251 million and 278 million pounds, respectively. The United Kingdom also experienced a significant decline from the prior year, with milk production down 102 million pounds.
 
While 21 out of the 28 member countries experienced year-over-year declines, milk production strengthened across some countries, including Poland, the Netherlands and the Czech Republic. Together, these regions contributed an additional 119 million pounds of milk in January, offsetting some losses.  


Sportsman shake offer ends soon

The last day to save 20 percent on your order of DFA’s Sportsman protein shake is quickly approaching. Sportsman protein shake is available for delivery straight to your door in 12-pack cases of 11-ounce cans of either rich chocolate or creamy vanilla. The shake is blended from real dairy and acts as a great source of protein, electrolytes, calcium and potassium for hunters, fishermen and other outdoorsmen. Read more about Sportsman at Leader online.  

Click here and enter the discount code DFASHAKE at checkout by Friday, March 31, to take advantage of the offer. Amazon Prime members receive free shipping.
  

Daily Market Update

Provided by DFA Risk Management


Dairy

  • Pressured by a 2-cent decline in the CME Group cash barrel cheese market, second-quarter CME cheese futures declined 1¼ cents to $1.54¾ per pound. Slight increases in CME dry whey futures helped limit CME Class III milk futures declines in the same period. Second-quarter CME Class III milk futures declined 10 cents per hundredweight on average.   
  • Following a 2½-cent-per-pound decline in CME cash nonfat dry milk (NFDM), April through December CME NFDM futures weakened, with the strongest declines experienced May through July. The second-quarter CME NFDM futures average declined 2½ cents, settling at 86¼ cents per pound.   
  • The spread between CME Class III milk futures and the DFA Risk Management feed index for the second half of the year is $8.74 per hundredweight, up 18 cents from last week. Weaker CME Class III milk futures were outweighed by decreasing CME corn and soybean meal futures, resulting in the higher margin. 

Grains and other markets

  • December CME corn futures weakened this week as projections for global stocks remain strong. Additionally, U.S. weather forecasts have remained beneficial for planting progress in the south.
  • Several countries banned imports of Brazilian meat this week after authorities raided several meat exporters last Friday. The exporters allegedly bribed inspectors to certify meat that was unfit or contaminated. China, Mexico, Chile, Japan, the EU and Hong Kong have taken measures to avoid importing Brazilian meat. Brazil's government shut down three plants and suspended the export licenses for 21 meat-packing plants. This news has supported April CME live and feeder cattle futures, which increased $2.78 and $3.95 per hundredweight this week, respectively.  
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DFA Today: Friday, March 17, 2017

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March 17, 2017

News


US estimated fluid milk sales decline

According to U.S. Department of Agriculture’s (USDA) EstimatedFluid Milk Products Sales Reportfor January, total fluid milk product sales decreased 0.8 percent to 4.26 billion pounds, compared to January 2016.

Total whole and flavored milk sales continued to increase, with year-over-year sales strengthening 42 million and 34 million pounds, respectively. 


Consumer sentiment update

According to the University of Michigan’s Surveys of Consumers, the preliminary result for the March consumer sentiment index is 97.6, up 1.3 points from the previous month.

While the index was up overall, consumer expectations were mixed. Future economic prospects were largely affected by partisanship, with Democrats more commonly reporting expectations of a recession while Republicans anticipate economic growth. Despite mixed future economic forecasts, renewed strength in current economic conditions ultimately led to a positive outcome for the March consumer sentiment index.

Daily Market Update

Provided by DFA Risk Management


Dairy

  • Second-quarter CME Group Class III milk futures strengthened with support from increases in the CME cash cheese markets. Despite today's strength, the second-quarter CME Class III milk futures average has decreased 31 cents per hundredweight since last Friday.
  • Supported by a stronger CME cash butter market, April CME butter futures increased more than 2 cents per pound. On this date in 2016, the CME cash butter market settled at $1.94, 19 cents per pound lower than today's settlement.
  • The spread between CME Class III milk futures and the DFA Risk Management feed index for the second half of the year is $8.56 per hundredweight, down 23 cents from last week. Weaker CME Class III milk futures, in addition to slight increases in CME corn futures, factored into the weaker margin. 

Grains and other markets

  • CME corn futures strengthened slightly as market participants attempt to balance increasing demand for corn exports and ethanol with strong global corn production. December CME corn futures increased this week after experiencing significant declines since the beginning of March. 
  • CME soybean futures remain under pressure from growing global stocks. Reports indicate Brazil's soybean harvest is more than 50 percent complete. Since March 1, November CME soybean futures have declined nearly 37 cents to $9.93½ per bushel.


 
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