DairyProfit Update for April 16, 2012
USDA: Fire, no power, no reports
An small electrical fire in the USDA South Building in Washington, D.C. on Monday, April 16, resulted in a power outage and closure off some USDA buildings for the day. Several USDA reports, including the latest monthly Livestock, Dairy & Poultry Outlook report, were delayed for at least one day.
Pizza consumption continues to rise, according to Technomic’s Pizza Consumer Trend Report for foodservice executives. More than four in 10 (41%) of consumers polled say they’re now eating pizza once a week, compared to 26% just two years ago.
Pizza consumption has increased over the past two years as leading players revamp menus to include more innovative specialty pizzas, gourmet ingredients and items beyond pizza that help operators drive traffic. As increased consumer confidence leads some to trade up within the pizza category, others still feeling the pinch are attracted to the special offers and coupons that chains are rolling out as well as generally less expensive, yet high quality, take-and-bake and frozen pizza offerings.
CWT assists with 2.9 million lbs. of butter and cheese exports
Cooperatives Working Together (CWT) accepted 16 requests for export assistance from Bongards Creameries, Dairy Farmers of America, Darigold, Foremost Farms, Michigan Milk Producers Association, Upstate Niagara Cooperative and United Dairymen of Arizona to sell 1.817 million lbs. of cheddar and Monterey Jack cheese and 1.074 million lbs. of butter to customers in Asia, Central America, the Middle East and North Africa. The product will be delivered April through September 2012.
So far in 2012, CWT has assisted member cooperatives in making cheese export sales totaling 43.4 million lbs. and butter export sales totaling 38.5 million lbs. to 25 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 1.239 billion lbs., or the annual milk production of about 59,000 cows.
MARKETS: Powders, Class III futures slightly lower
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 1.5¢, to $1.1675/lb.
Grade A nonfat dry milk: down 1.5¢, to $1.1775/lb.
Class III milk: mostly slightly lower through January 2013. Based on current closing prices, the 2012 average is $15.98/cwt.; 2013 average is $16.08/cwt.
Grain futures lower
Corn: -6¢ to -15¢/bushel through December 2012. The 2012 average is $5.76/bu.; 2013 average is $5.40/bu.
Soybeans: -11¢ to -17¢ through November 2012. The 2012 average is $13.97/bu.; 2013 average is $13.05/bu.
Soybean meal: -$2.20 to -$4.40 through December 2012. The 2012 average is $378.97/ton; 2013 average is $337.51/ton.