DairyBusiness Update for Jan. 17, 2013
February Class I base price: $18.21/cwt.
The federal order February Class I base milk price is $18.21/cwt., down 76¢ from January, but $1.18 more than February 2012. It’s the lowest monthly Class I base price since September 2012. The 2012 Class I base price averaged $17.46/cwt., down $1.67 from the 2011 average of $19.13/cwt.
The California Department of Food & Agriculture (CDFA) said it will announce February 2013 Class 1 milk prices on or before Jan. 22, pending the outcome of a December public hearing on proposed temporary milk pricing formulas for all classes of milk.
Dairy outlook mirrors WASDE
Dairy projections contained in USDA’s Livestock, Dairy & Poultry Outlook report, released Jan. 17, matches those of the World Ag Supply & Demand Estimates (WASDE) report, released Jan. 11. Both 2012 and 2013 milk production estimates were raised slightly from a month earlier, based on a slower decline in cow numbers and stronger milk output per cow during the fourth quarter of 2012. USDA predicts slower cow removals will continue into 2013. The dairy herd is expected to average 9.135 million head for 2013; annual milk yield per cow is forecast at 21,880 lbs.
• 2012 production and marketings were projected at 200.0 billion lbs. and 199.0 billion lbs., respectively, both up 300 million lbs. from December’s projections. If realized, 2012 production and marketings would be up about 1.9% from 2011.
• 2013 milk production and marketings were raised 200 million lbs., to 199.9 billion lbs. and 198.9 billion lbs., respectively. If realized, 2013 totals would be virtually unchanged from 2012.
FarmFirst Dairy Cooperative, the Midwest’s newest and largest dairy co-op, announced the organization’s 2013 officers. In addition, the organization will hold its first annual meeting, Feb. 8-9, in Stevens Point, Wis.
The 2013 FarmFirst Dairy Cooperative officer candidates were nominated from the 20-person board of directors, representing the combined boards of the three cooperatives recently merged to form FarmFirst Dairy Cooperative. The new officers are as follows: president – Peter Kleiman, Wilson, Mich.; vice president – Richard Meyer, Unity, Wis.; secretary – Bernard Vander Heiden, Kaukauna, Wis.; treasurer – John Rettler, Neosho, Wis. Ken Wunderlin, Livingston, Wis. also was elected as a member-at-large for the cooperative’s Executive Committee.
The 2013 FarmFirst Dairy Cooperative board of directors will next meet during the co-op’s annual meeting on Feb. 8-9, at the Holiday Inn Hotel and Convention Center in Stevens Point, Wis.
Learn more about FarmFirst Dairy Cooperative by visiting: www.FarmFirstDairyCooperative.com.
MARKETS: Barrels down; Class III futures mixed in narrow range
Today's market closing prices:
Butter: up 1.0¢, to $1.50/lb.
Cheddar blocks: unchanged at $1.70/lb.
Cheddar barrels: down 1.5¢, to $1.65/lb.
Grade A nonfat dry milk: unchanged at $1.5350/lb.
Extra Grade nonfat dry milk: unchanged at $1.56/lb.
Class III milk: -5¢ to +4¢ through March 2014. Based on current CME closing prices, the 2012 average is $17.44/cwt.; the 2013 average is $18.23/cwt.; and the 2014 average is $16.37/cwt.
Corn, soybean & meal futures lower
Corn: -4¢ to -7¢ per bushel through September 2014. The 2013 average is $6.73/bu.
Soybeans: -6¢ to -12¢ per bushel through September 2014. The 2013 average is $13.74/bu.
Soybean meal: -$4.30 to -$6.00/ton through September 2014. The 2013 average is $388.77/ton.