DairyProfit Update for April 13, 2012
Did you know antibiotics are used in commercial fuel ethanol production facilities to control bacterial contamination? The FDA’s Center for Veterinary Medicine (CVM) recently reported on a study of antibiotic residues in ethanol co-products, primary distiller’s grains, which are used as animal feed ingredients.
FDA laboratories analyzed 46 samples for residues of up to 12 antibiotics. FDA found four samples had quantifiable levels of antibiotic residues. Of those, three were domestic samples; one was from a Canadian import.
Since the primary objective of the analysis was to collect data, CVM does not anticipate regulatory follow-up. However, CVM will consider the information as it develops a policy for antibiotic residues in distillers products.
Dairy exports top $400 million for 12th straight month
The value of February 2012 U.S. dairy exports topped $400 million for the 12th consecutive month. At $437 million, February exports were up 3% from January 2012 and up 11% from February 2011.
At $245 million, February 2012 imports were down 4% from January 2012, but up about 15% from February 2011.
Year-to-date fiscal year (FY) 2012 (October 2011-February 2012) exports were estimated at $2.142 billion, up 27% from the same period a year earlier. FY ’12 imports were estimated at $1.331 billion, up 13%. The FY ’12 dairy trade surplus stands at $811 million.
February 2012 cheese imports were estimated at $75 million, down 3% from January 2011 and 9% less than February 2011. Y-T-D FY ’12 cheese imports are estimated at $476 million, up 2% from the same period in FY ’11.
FY ’12 U.S. dairy trade
Exports Imports Difference
Month $ million $ million $ million
Feb. ’12 437 245 +192
Jan. ’12 426 255 +171
Dec. ’11 430 273 +157
Nov. ’11 438 309 +129
Oct. ’11 411 249 +162
YTD total 2,142 1,331 +811
Source: USDA Economic Research Service
U.S. dairy cattle exports remain strong
February U.S. female dairy cattle exports topped 6,000 head for the fourth time in five months, with Russia again the leading destination for most of them, according to USDA’s Foreign Ag Service.
February 2012 exports totaled 6,440 head, bringing the year-to-date (Y-T-D) total to 10,947 head, compared to 8,162 head for the same period in record-setting 2011.
Russia imported 4,438 U.S. dairy replacement females in February, bringing its Y-T-D total to 7,038 head, or about 65% of all U.S. exports so far this year.
Last year’s leading U.S. female dairy cattle export market, Turkey, imported 1,226 head in February, for a two-month total of 1,954.
Other substantial markets were Canada, 400 head; and the United Arab Emirates, 346.
February alfalfa hay exports a record
February U.S. alfalfa hay exports topped 150,000 metric tons for the fifth time in six months, according to USDA’s Foreign Ag Service. February alfalfa hay exports totaled 167,933 metric tons, quite possibly the largest volume on record, and bringing the 2012 two-month total to 310,473 metric tons.
Previous high monthly total alfalfa hay exports were 163,034 metric tons in December 2010 and 162,213 metric tons in May 2009.
Japan was again the leading monthly U.S. alfalfa hay market, importing 53,187 metric tons in February, for a two-month total of 99,471 metric tons, about 32% of the U.S. Y-T-D total.
The United Arab Emirates (UAE) imported 45,977 metric tons of U.S. alfalfa hay in February, bringing its 2012 total to 87,007 metric tons, or about 28% of all U.S. exports so far this year.
China, South Korea and Taiwan rounded out the top five markets, both for the month and year-to-date.
U.S. exports of other hay in February totaled 151,014 metric tons, for a two-month total to 301,697 metric tons. Japan imported 180,462 metric tons of other hay from the U.S. during the first two months of 2012, or nearly 60% of the total. South Korea, China, UAE and Taiwan (in order) rounded out the top five markets for other hay, both in February and year-to-date.
MARKETS: Barrels bounce back up; powders weaken more
Today's market closing prices:
Cheddar barrels: up 5.25¢, to $1.46/lb.
Cheddar blocks: unchanged at $1.4875/lb.
Butter: unchanged, at $1.4250/lb.
Extra Grade nonfat dry milk: down 2.5¢, to $1.1825/lb.
Grade A nonfat dry milk: down 2.5¢, to $1.1925/lb.
Class III milk: higher April-June 2012; slightly lower July 2012-February 2013. Based on current closing prices, the 2012 average is $16.02/cwt.; 2013 average is $16.09/cwt.
Corn, soybean futures lower; soybean meal mixed
Corn: -8 to -9¢/bushel through December 2012. The 2012 average is $5.86/bu.; 2013 average is $5.50/bu.
Soybeans: -4¢ to -11¢ through November 2012. The 2012 average is $14.11/bu.; 2013 average is $13.13/bu.
Soybean meal: -$2.40 to +$1.20 through December 2012. The 2012 average is $382.07/ton; 2013 average is $339.46/ton.
The U.S. Senate could be starting work on the Farm Bill next week, and National Milk Producer Federation’s Chris Galen reports dairy producers need to contact their senators to include the Dairy Security Act.
Select Sires Ray Nebel continues his “Top 10” list on semen handling techniques
Dr. Mike Hutjens discusses in his weekly “Feed Facts” segment
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Dave Natzke, Editor