DairyBusiness Update for 10.15.13
E. Linwood “Tip” Tipton loomed larger than life during his service to the U.S. dairy industry associations, which spanned 38 years. The first president and CEO of the International Dairy Foods Association, Tipton died Saturday at the age of 79 after a year-long illness. He leaves behind a lasting legacy of tremendous industry growth, creativity and collaboration while working with all segments of the dairy industry, as well as business associations and the Capitol Hill community. Read more ...
The dairy industry heard some good news at the U.S. Dairy Export Council (USDEC) annual board and membership meeting in Chicago. USDEC projects that by the end of this year the value of U.S. dairy exports will total $6.5 billion, up more than 25% from 2012 and, barring a dramatic change in market conditions, 2013 will mark a fourth consecutive record year for U.S. dairy exports.
USDEC president Tom Suber credited U.S. suppliers and traders, who are "showing more ambition, more commitment and more capability to pursue export markets.”
Speaking to more than 140 attendees, Suber said U.S. exporters have capitalized in 2013 on reduced supply from other countries, steady global dairy demand and favorable pricing. More than 15% of U.S. milk production now goes to exports.
Tim Hunt, global dairy strategist for Rabobank, said a global shortage of dairy products is expected to continue, driving continued growth for U.S. exports in 2014.
“In the next six months, the United States is likely to be the region with the most additional supply available to grow exports,” Hunt said. “In addition, the United States looks to be entering a period of enhanced competitiveness.”
Key buyers, most notably China, are looking to diversify their supply, according to Hunt, “Therefore, the time is right to vigorously pursue export development.”
CWT assists with 2.9 million lbs. of cheese, butter export sales
Cooperatives Working Together (CWT) accepted seven requests for export assistance from Bongards Creameries, Dairy Farmers of America and Maryland & Virginia Milk Producers Cooperative Association to sell 2.429 million lbs. of cheddar and gouda cheese and 440,925 lbs. of butter to customers in Asia, Europe, the Middle East and North Africa. The product will be delivered October 2013 through March 2014.
So far in 2013, CWT has assisted member cooperatives in selling 109.329 million lbs. of cheese, 80.236 million lbs. of butter, 44,092 lbs. of anhydrous milk fat and 218,258 lbs. of whole milk powder to 37 countries on six continents. These sales are the equivalent of 2.816 billion lbs. of milk on a milkfat basis.
Mielke’s Market Daily
(A daily wrap-up of dairy markets and the things affecting them, from DairyBusiness Update associate editor Lee Mielke)
Cash block cheddar gained another 1¢ this morning, lifting the price for the fifth session in a row. The blocks are now trading at $1.8250/lb. Two cars were sold; 1 bid went unfilled. Cheddar barrels held at $1.78/lb., with an offer going uncovered.
Butter gave back Friday’s gain and a little more, dropping 1.5¢, to $1.5275/lb. Only 1 car was traded, and 1 offer was left on the board.
Grade A nonfat dry milk remained at $1.8450/lb. and Extra Grade at $1.80/lb. There was no activity in the powder.
Today’s market closing prices:
Butter: down 1.5¢, to $1.5275/lb.
Cheddar blocks: up 1¢, to $1.8250/lb.
Cheddar barrels: unchanged, at $1.78/lb.
Grade A nonfat dry milk: unchanged, at $1.8450/lb.
Extra Grade nonfat dry milk: unchanged, at $1.80/lb.
Class III milk: mixed in a narrow range through December 2014. Based on current CME closing prices, the Q4 2013 average is $18.06/cwt.; with an overall 2013 average of $17.83/cwt.; and a 2014 average of $16.90/cwt.
Coming up: Eyes remain on the cash market, weather and Congress. The Livestock, Dairy and Poultry Outlook is scheduled for Friday afternoon, but will not happen if lawmakers do not agree on solving their impasse.
Global recap: Prices on Tuesday’s GlobalDairyTrade (GDT) auction were mostly lower, according to eDairy’s Insider Closing Bell. The weighted average price for all products fell 1.9%, and five of the nine prices were lower than the previous auction.
Leading the price declines was buttermilk powder, down 5.2%, to $2.1228/lb., followed by butter, off 3.5%, to $1.7146/lb. or $1.6728, adjusted for 80% fat); whole milk powder, off 2.9%, to $2.2943/lb.; cheddar cheese, down 1.7%, to $1.9622/lb.; and anhydrous milkfat, off 1.2%, to $2.2711/lb. Lactose prices were unchanged. The remaining products were higher, led by milk protein concentrate 70, up 1.7%, to $3.357/lb.; rennet casein, up 1.5%, to $4.4815/lb.; and skim milk powder, up 0.7%, to $2.0598/lb.
Corn up; soybean, soybean meal futures lower
Today’s futures prices at the Chicago Mercantile Exchange:
Corn: +5¢ to +6¢ through December 2014, settling in a range of $4.43-$4.84/bushel.
Soybeans: -1¢ to -6¢ through November 2014. November 2013 through August 2014 contracts settled in a range of $12.30-$12.67/bushel.
Soybean meal: -$1.20 to -$5.00/ton through December 2014. December 2013-September 2014 contracts settled in a range of $369-$402/ton.
• Scott Stewart previews a new e-book on market volatility
• Mike Hutjens prepares producers for the cold weather that will be here before you know it.
Today on Facebook
• Photo of the Day: Jack and Alex Brown of Browntown Farms Ltd. are seen showing Morsan W Jasper Booboo in the peewee showmanship class at their local dairy show, the Halifax County Exhibition in Middle Musquodoboit, Nova Scotia this summer. Browntown Farms has only been breeding cows for 5 years and walked away with a couple of first-place ribbons with their homebred prefix (Browntown Attic Goldy and Browntown Goldwyn Grandslam), top Junior Breeders Herd for the second year in a row and top Junior Exhibitor Banner. Congrats! ~Photo by Lindsay Brown, Proud wife and Mother #HolsteinWorldPOTD — with Miguel Hernandez.
• From robotics, to milk prices, to social media this year's World Dairy Expo seminars covered all sorts of topics. If you missed catching the seminars live you can now watch them online at www.worlddairyexpo.com/pages/2013-Expo-Seminar-Videos.php
Coming tomorrow in DairyBusiness Weekly:
(Our digital-only magazine)
• World dairy market: Here today ... but what about tomorrow?
• Farm Bill Conference Committee named
• DCC’s mobile dairy classroom
• This lawsuit should be on your radar screen
• A first time for everything: Friese excels at World Dairy Expo
• Last chance to chose your favorite St. Jacobs star
• Sale summary: Sale reports from Expo
• Check out our industry briefs, view our product spotlight, see what's happening on social media, listen to our podcasts and more!
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