DairyProfit Update for Dec. 27, 2012
Jersey registration record shattered
The American Jersey Cattle Association (AJCA) recorded 100,000 animals in 2012, the first time in history. The previous record for Jersey registrations – 96,174 set in 2011 – was broken on Dec. 26.
“This is a milestone for not only the association and its members, but also for the Jersey breed worldwide,” said Neal Smith, Executive Secretary and Chief Executive Officer. “The smaller, more efficient Jersey cow is the solution to the challenges of profitability and sustainability confronting dairy herd owners, no matter how small or large their operations are,” he said. “Jerseys produce the most valuable components of milk – proteins and fat – with less feed, using less energy, water and land, and with a smaller total carbon footprint.
“And through November of this year,” Smith continued, “Jersey milk was valued from $1.58 to $3.47/cwt. than the statistical blend price of Federal Order and California markets tracked by National All-Jersey Inc.”
EPA Secretary Jackson to resign
U.S. Environmental Protection Agency (EPA) administrator Lisa jackson informed President Obama she would leave her Cabinet position after the annual State of the Union message.
Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA), thanked Jackson for her support of the ethanol industry.
"Administrator Jackson put into action the Obama Administration's commitment to ethanol and other biofuels,” he said. “During her tenure, she cleared the way for E15 giving consumers more choice and savings at the gas pump and she protected the progress that has been made in reducing our dependence of foreign oil by recognizing the importance and inherent flexibility of the RFS. The ethanol industry thanks her for her service and looks forward to working with her successor to continue the growth of America's domestic renewable fuels industry."
Weekly cow slaughter strong
USDA’s Market News Service said 66,600 dairy cull cows were slaughtered under federal inspection during the week ending Dec. 15. It marked the fourth time in five weeks that weekly slaughter topped 65,000 head. The weekly total brought the year-to-date total to 2.98 million, about 178,000 ahead of the same period a year ago, on pace to top 3 million head for just the third time since 1986, and the highest annual total in 17 years.
This month’s Livestock Gross Margin-Dairy (LGM-Dairy) margin insurance sales period is set for Dec. 28-29, according to Alan Zepp, Risk Management Program coordinator with Pennsylvania’s Center for Dairy Excellence.
Approximately $4 million in underwriting capacity remains to cover LGM-Dairy premium subsidies and administrative costs for fiscal year 2013. For more information, contact Zepp at firstname.lastname@example.org or phone 717-346-0849.
Dr. Brian Gould, professor in the University of Wisconsin-Madison’s Department of Agricultural and Applied Economics, also has a LGM-Dairy Analyzer software system for planning purposes (http://future.aae.wisc.edu/lgm_analyzer/), or contact him at email@example.com or phone 608-263-3212. For additional information, visit http://future.aae.wisc.edu/lgm_dairy.html.
National dairy products sales report highlights
USDA’s Ag Marketing Service announced average dairy product prices for the week ending Dec. 22:
• Grade AA butter prices averaged $1.60/lb. for the week, up 0.7¢ from the previous week.
• 40-lb. cheddar cheese blocks averaged $1.78/lb., down 3.1¢; 500-lb. cheddar barrels (adjusted to 38% moisture) averaged $1.72/lb., down 3.9¢.
• Extra Grade dry whey prices averaged 66.8¢/lb., up 1.3¢ from the previous week.
• Grade A nonfat dry milk prices averaged $1.56/lb., up 1.4¢.
MARKETS: Barrels roll; Class III futures mixed in narrow range
Today's market closing prices:
Butter: unchanged, at $1.4975/lb.
Cheddar blocks: unchanged, at $1.74/lb.
Cheddar barrels: up 5.5¢, to $1.71/lb.
Grade A nonfat dry milk: unchanged, at $1.5575/lb.
Extra Grade nonfat dry milk: unchanged, at $1.56/lb.
Class III milk: -10¢ to +6¢ through May 2014. Based on current CME closing prices, the 2012 average is $17.44/cwt.; the 2013 average is $18.41/cwt.; and the 2014 average is $16.40/cwt.
Corn, soybean and meal futures mostly lower
Corn: -2¢ to -3¢ through September 2014. The 2013 average is $6.58/bu.
Soybeans: -5¢ to +2¢ through November 2013. The 2013 average is $13.79/bu.
Soybean meal: -$0.10 to -$1.80/ton through December 2013. The 2013 average is $403.48/ton.
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