DairyBusiness Update for 9.24.13
CWT assists with 5 million lbs. of cheese, butter export sales
Cooperatives Working Together (CWT) accepted 18 requests for export assistance from Dairy Farmers of America, Foremost Farms, and Northwest Dairy Association (Darigold) to sell 4.041 million lbs. of cheddar, gouda and Monterey Jack cheese and 992,080 lbs. of butter to customers in Asia, Europe, the Middle East and North Africa. The product will be delivered September 2013 through February 2014.
So far in 2013, CWT has assisted member cooperatives in selling 100.974 million lbs. of cheese, 71.538 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 2.543 billion lbs. of milk on a milkfat basis.
Food groups support House dairy policy
Food manufacturer, restaurant and retailer groups recently voiced support for the dairy provisions as included in the House-passed Farm Bill. In a letter to Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) and Ranking Member Thad Cochran (R-MS), the groups urged the senators to reject “any new government dairy ‘supply management’ program.” The list of groups includes national organizations like the Grocery Manufacturers Association, the Food Marketing Institute, the National Grocers Association, the National Restaurant Association and the National Council of Chain Restaurants, as well as local groups like the Dairy Institute of California, the Northeast Dairy Foods Association, the Wisconsin Cheese Makers Association, and the Michigan Grocers Association. Read the letter here.
PDPW announces 100-Pound Dairy Tours™
The Professional Dairy Producers of Wisconsin (PDPW) announced their 100-Pound Dairy Tours™, Oct. 15, 16 & 17.
Milk production per cow is a strong indicator of economic and production efficiency. This year’s “100-Pound Dairy Tours” will highlight nine innovative Wisconsin dairies where 100 lbs. of milk per cow per day is the norm.
Participants can attend one, two or all three days. Tours will include Central Sands Dairy, Maple Ridge Dairy, Feltz Family Farms, Harmony Ho Holsteins, JTP Farms, Selz Farm, Nehls Brothers Farms, Kutz Dairy and JC-Kow Farms.
The first day of tours will depart from the Target parking lot in Steven Point, Wis.;
Day two tours will gather and leave at the Chippewa Valley Technical College, Neillsville, Wis.
Day three tours will depart from the PDPW Headquarters, Juneau, Wis.
Those interested in attending may sign up online at www.pdpw.org, or call 800-947-7379. For additional information regarding PDPW programming, or to learn more about PDPW, contact PDPW at email@example.com.
Next ‘PYP’ call is tomorrow
Pennsylvania’s Center for Dairy Excellence (CDE) will host a “Protecting Your Profits” conference call on Wednesday, Sept. 25, from 12–12:15 p.m. (Eastern) to provide a quick update of the dairy markets and margins. Alan Zepp, CDE risk management program manager will host the call.
During his call, Zepp will explain the global and domestic issues that could influence prices for dairy and other commodities in the next 10 months. He will also discuss current U.S. and Pennsylvania dairy production trends. The call will include a brief review of risk management opportunities to protect against volatility in the marketplace.
Anyone can participate in the monthly conference call series. There is no charge to participate in the call, but pre-registration is required. Calls are hosted in a webinar format to be recorded and made available for later viewing. Past Protecting Your Profits calls can be accessed at www.centerfordairyexcellence.org under “Dairy Information.” To register, call the center at 717-346-0849 with name, phone number, and e-mail address. Once registered, participants will receive the call-in number and information.
MARKETS: Products unchanged; Class III futures mixed
The cash cheese market sat on “pause” this morning following yesterday’s August Cold Storage report, according to DairyBusiness Update associate Editor Lee Mielke. Pundits seem to agree that the report showed good seasonal product declines, but American stocks are still above the five-year average. The cheddar blocks held today at $1.7825/lb., following yesterday’s 1.25¢ loss. The barrels remained at $1.7450/lb., after giving up 2.25¢ yesterday. Buyers and sellers were nowhere to be found so no activity to report.
Butter held at $1.6050/lb., after inching up 0.5¢ yesterday. Four cars were sold this morning, all at the existing price. But, two bids at that price went unfilled, and an offer at $1.6075/lb. didn’t interest the buyers.
Cash Grade A nonfat dry milk held at $1.8450/lb., but an offer at that price went uncovered. Extra Grade remained at $1.78/lb. with nothing happening.
Today’s market closing prices:
Butter: unchanged, at $1.6050/lb.
Cheddar blocks: unchanged, at $1.7825/lb.
Cheddar barrels: unchanged, at $1.7450/lb.
Grade A nonfat dry milk: unchanged, at $1.8450/lb.
Extra Grade nonfat dry milk: unchanged, at $1.78/lb.
Class III milk: -5¢ to +14¢ through December 2013. Based on current CME closing prices, the September-December 2013 average is $17.77/cwt.; with an overall 2013 average of $17.73/cwt.; and a 2014 average of $16.79/cwt.
HighGround: Farmgate price to be higher
In this week of limited USDA reports, dairy markets got a little food for thought from down under. HighGround Dairy’s Eric Meyer reported Fonterra announced an increase to its forecast farm gate milk price for the 2014 season, and the likely impact on earnings for the current financial year.
Chairman John Wilson said the cooperative announced it has increased its forecast for the 2014 season by 50¢ to $8.30 per kgMS. The increase, along with an estimated dividend of 32¢ per share, amounts to a forecast cash payout for 2014 of $8.62.
A Fonterra press release stated “The record forecast farm gate milk price reflected continuing strong international prices for dairy, particularly whole milk powder driven by robust demand from Asia, especially China. We are still facing high levels of volatility around the world.”
But chief executive Theo Spierings warned that the business “also faces headwinds, especially in the first half of the current financial year when we expect earnings will be significantly lower than the strong performance in the first half of 2013.”
Corn lower; soybeans and soybean meal futures up
Today’s futures prices at the Chicago Mercantile Exchange:
Corn: -6¢ to -4¢ through December 2014, settling in a range of $4.48-$4.86/bushel.
Soybeans: +3¢ to +5¢ through November 2014. November 2013 through August 2014 contracts settled in a range of $12.57-$13.15/bushel.
Soybean meal: +$1.60 to +$3.80/ton through December 2014. October 2013-September 2014 contracts settled in a range of $374-$414/ton.
USDA’s monthly Ag Prices report – including the latest milk-feed price ratio – is out Friday, Sept. 27.
Tomorrow's DairyBusiness Weekly previews the growing World Dairy Expo trade show.
Today on Facebook
• Photo of the Day: The crowd favorite Team Durham Morgan-ET is now Excellent-95 with a 97-point udder! At 6-years-old, Morgan was most recently the Reserve Senior Champion of the 2013 Illinois State Fair. Morgan is the first registered animal under Team Holsteins' prefix, owned by Jeff Drendel and Kevin Kriegel, Hampshire, IL. ~Photo by Les Schmidt #HolsteinworldPOTD — with Silos Aereos.
• Greg Hardy from Hardy Holsteins introduce the Stars of the Universe Sale they will be hosting on Oct. 2, 2013. The Hardys will be presenting some of the best cattle from their herd, and also many great consignments. The Stars of the Universe Sale will take place on Oct. 2, 2013 at the Deaver Farm, 20 minutes from World Dairy Expo, at 2 p.m. (central). http://youtu.be/mPlzEPQFNoo
• The dairy checkoff has launched a new website – www.dairy.org – helping tell the checkoff and Dairy Management Inc. (DMI) story. Dairy.org presents an overview of the organization’s function, plus information about the Innovation Center for U.S. Dairy, National Dairy Council, Fuel Up to Play 60 and other checkoff priority areas. There are also links to state and regional dairy promotion organizations.
Coming tomorrow in DairyBusiness Weekly:
(Our digital-only magazine)
• Countdown to World Dairy Expo: Where the world does business
• The World Dairy Expo Checklist: Things to do and see at World Dairy Expo
• Meet the DairyBusiness and HolsteinWorld faces at Expo
• Virginia Tech Dairy Center
• NAAB: Domestic semen sales steady, exports up
• Milk output up for 5th consecutive month
• Check out our industry briefs, view our product spotlight, see what's happening on social media, listen to our podcasts and more!
• Ron O’Brien, Risk Management Consultant
• Adam Robey, Kentucky producer
• Shannon Hext, Professional Dairy Producers Foundation
For a sample copy of DairyBusiness Update, or subscription information, visit http://dairybusiness.com/Update.php or phone: 800-334-1904, ext. 222.
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