DairyProfit Update for April 23, 2012
February fluid sales
About 4.31 billion lbs. of packaged fluid milk products were sold in the United States in February 2012, up 0.2% from February 2011. Estimated February sales of conventional fluid products, at 4.13 billion lbs., declined 0.2% from February 2011; sales of organic milk products, at 176 million lbs., increased 11.2%. Organic sales represented about 4.1% of total sales.
Year-to-date, estimated January-February sales of packaged fluid products totaled 8.95 billion lbs. (8.85 billion, adjusted). Y-T-D sales of conventional fluid products, at 8.58 billion lbs., declined 1.8% from the same period in 2011; sales of organic milk products, at 369 million lbs., increased 11.9%. Organic sales represented about 4.1% of total sales.
Source: Dairy Market News
CWT assists with 3.4 million lbs. of cheese and butter export sales; to add AMF
Cooperatives Working Together (CWT) accepted 11 requests for export assistance from Dairy Farmers of America, Darigold, Foremost Farms and Maryland & Virginia Milk Producers Cooperative to sell 2.615 million lbs. of cheddar and Monterey Jack cheese and 752,000 lbs. of butter to customers in Africa, Asia, the Middle East and South America. The product will be delivered May through July 2012.
So far in 2012, CWT assisted member cooperatives in making cheese export sales totaling 46.0 million lbs. and butter export sales totaling 39.2 million lbs. to 26 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 1.280 billion lbs., or equivalent to the annual milk production of 60,900 cows.
CWT also announced that, beginning the week of May 7, it will begin accepting requests for export assistance for anhydrous milk fat (AMF).
(An attempt at a) Summary: Senate Ag Committee Farm Bill dairy title
The 900-page draft farm bill language released April 20, by the Senate Agriculture Committee includes 43 pages (pages 68-111) devoted to federal dairy policy reforms. Markup of the bill is scheduled for April 25.
The current Farm Bill is set to expire Sept. 30, 2012. If approved and signed into law, the draft language contained in the Senate Ag Committee 2012 Farm Bill would make many of the dairy provisions effective Oct. 1, 2012, or 120 days after it is signed into law. It would expire Dec. 31, 2017.
DairyBusiness Communications read through the draft dairy language, provided by Senate Ag Committee chair Sen. Debbie Stabenow (D-Mich.) and ranking member Sen. Pat Roberts (R-Kan.). The dairy title of the bill primarily describes the structure and implementation of programs, the key components of which are contained in the Dairy Security Act (H.R. 3062) and the Foundation for the Future dairy policy reform, developed by National Milk Producers Federation (NMPF). For more ...
MARKETS: Cheese divergent; Class III down a bunch
Today's market closing prices:
Cheddar barrels: up 1.0¢, to $1.47/lb.
Cheddar blocks: down 0.5¢, to $1.5225/lb.
Butter: unchanged, at $1.4125/lb.
Extra Grade nonfat dry milk: unchanged, at $1.1275/lb.
Grade A nonfat dry milk: unchanged, at $1.1675/lb.
Class III milk: mixed in a narrow range through December 2013. Based on current closing prices, the 2012 average is $15.69/cwt.; 2013 average is $15.89/cwt.
Corn higher; soybeans, meal lower
Corn: +9¢ to +10¢/bushel through December 2012. The 2012 average is $5.84/bu.; 2013 average is $5.57/bu.
Soybeans: -8¢ to -14¢ through November 2012. The 2012 average is $14.05/bu.; 2013 average is $12.93/bu.
Soybean meal: -$6.20 to -$8.30 through December 2012. The 2012 average is $384.10/ton; 2013 average is $334.20/ton.
• Many of our May columns, editorial, and features are up on the DairyBusiness website. Check'em out!
• Pennsylvania: A growing, dynamic dairy industry.
• Doing some planning this afternoon for May and June events. Any guesses where I'm going?
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Editorial Director – DairyBusiness Communications
Editor – Dairy Profit Weekly