DairyProfit Update for Dec. 14, 2012
The National Milk Producers Federation (NMPF) released a revised version of its Spanish residue prevention manual Prevención de residuos de fármacos en la leche y la carne for 2013. As an area of focus for the National Dairy FARM ProgramTM, the manual can be found on the FARM Program’s website. This version was translated to Spanish from the revised 2013 Milk and Dairy Beef Drug Residue Prevention Manual, which was released in the fall.
Additions to the 2013 version include a section on avoiding potential residue violations from extra-label drug use in an unapproved class of cattle, cephalosporin extra-label use prohibitions, as well as an updated drug and test kit list. The 2013 manual includes a certificate of participation that can be signed by a producer and his/her veterinarian to demonstrate their commitment to the proper use of antibiotics. Visit www.nationaldairyfarm.com.
U.S. dairy suppliers, shut out of the Russian market since September 2010, are welcoming President Obama’s Dec. 14 signing of legislation granting permanent normal trade relations (PNTR) as a major step toward reopening business with one of the world’s largest dairy buyers.
The president’s action followed successful bipartisan votes by the House and Senate in the lame-duck session of Congress. The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) actively supported PNTR for Russia.
“Without PNTR, Russia couldn’t be compelled to apply its World Trade Organization (WTO) commitments to the United States,” said USDEC President Tom Suber. “PNTR means the United States can now utilize the full WTO toolbox to help resolve issues blocking U.S. dairy trade. It also means Russia has a reason to return to the bargaining table to find a compromise to their export certification and plant inspection demands that triggered the ban in the first place.”
“We are consistently shipping more than 13% of the milk solids produced annually in the United States to buyers beyond our borders,” said Jerry Kozak, President and CEO of NMPF. “Given the strides made by the U.S. dairy sector in meeting the world’s dairy needs, there is no reason – outside of nontariff barriers to trade – why we should not be a player in the Russian market.”
Annual Russian imports of milk powder, cheese, butterfat, whey protein and lactose averaged 434,000 tons, valued at $1.6 billion, from 2009-2011. Through three quarters of 2012, the nation was on track to hit similar numbers by year-end.
October hay exports up
While exports of U.S. dairy cattle are slumping, that's not the case with hay. October 2012 exports of alfalfa hay totaled 163,039 metric tons, the highest total in nine months, according to USDA’s Foreign Ag Service. October sales brought the 2012 total to 1.437 million metric tons, about 10% more than the same period a year ago.
U.S. exports of other hay totaled 200,963 metric tons, quite possibly the largest monthly volume ever. Through the first 10 months of 2012, the total stands at 1.576 million metric tons, up about 13% from January-October 2011.
MARKETS: Products steady; Class III futures rebound
Today's market closing prices:
Butter: unchanged at $1.5950/lb.
Cheddar blocks: unchanged at $1.7250/lb.
Cheddar barrels: unchanged at $1.6250/lb.
Grade A nonfat dry milk: unchanged, at $1.5575/lb.
Extra Grade nonfat dry milk: unchanged, at $1.56/lb.
Class III milk: +19¢ to +47¢, January-March 2013; otherwise slightly higher through December 2013. Based on current CME closing prices, the 2012 average is $17.44/cwt.; the 2013 average is $18.46/cwt.; and the 2014 average is $16.20/cwt.
Corn, soybean futures higher; meal futures mixed
Corn: +2¢ to +4¢ through December 2013. The 2013 average is $6.94/bu.
Soybeans: +8¢ to +19¢ through November 2013. The 2013 average is $14.05/bu.
Soybean meal: -$0.40 to +$3.10/ton through December 2013. The 2013 average is $417.43/ton.
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