DairyProfit Update for Nov. 13, 2012
Cooperatives Working Together (CWT) accepted 12 requests for export assistance from Dairy Farmers of America, Darigold, Land O’Lakes and United Dairymen of Arizona to sell 2.090 million lbs. of cheddar and Monterey Jack cheese and 5.463 million lbs. of butter to customers in Asia, the Middle East and North Africa. The product will be delivered November 2012 through May 2013.
So far in 2012, CWT has assisted member cooperatives in making export sales totaling 108.4 million lbs. of cheese, 66.7 million lbs. of butter, 127,868 lbs. of anhydrous milk fat and 85,980 lbs. of whole milk powder. The product will be delivered to 36 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 2.458 billion lbs., or the same as 68% of the increase in U.S. milk production through September 2012.
The National Milk Producers Federation (NMPF) joined more than 230 other farm, agriculture and food groups in urging Congress to pass a new, five-year farm bill in the upcoming lame duck congressional session expected to begin this week. The letter, which was directed at the Republican and Democratic House leaders, noted there is still ample time to complete its work by Dec. 31 on a new farm bill and reconcile any differences with the already-adopted farm bill by the Senate.
“If the question in Washington is how to reform government programs and make them more effective, we have an answer: pass the 2012 Farm Bill. The dairy title, along with the rest of the bill, saves money compared to the present program,” said Jerry Kozak, president and CEO of NMPF. “We’ve come too far to acquiesce to another serving of the status quo. Dairy farmers need more than platitudes from Congress – we need action and leadership.”
The Midwest Dairy Coalition strongly urged Congress to take action on a Farm Bill that has failed to move forward even as current dairy programs have expired.
"The Midwest Dairy Coalition has stated previously that it supports the dairy provisions of the Senate-passed Farm Bill, as well as the Farm Bill passed by the House Agriculture Committee," said Steve Etka, coordinator, Midwest Dairy Coalition. "However, the bill has not progressed, leaving dairy farmers without an effective program."
Etka said there are several avenues Congress could take in regards to the Farm Bill as the year draws to a close.
“Inaction would be to the detriment of the nation's dairy farm families, as well as other taxpayers,” he said. “Congress shouldn't squander away two years of work on the new Farm Bill by pushing the debate into a new year and forcing the process to start all over again. Passage of a new Farm Bill is the best route by far and we urge members of Congress to move forward on this important piece of legislation."
The Midwest Dairy Coalition is an alliance of farmer-owned dairy cooperatives representing 11,000 dairy farmers in eight Upper Midwest states.
MARKETS: Barrels drop 0.5¢; Class III futures mixed
Today's market closing prices:
Butter: unchanged, at $1.89/lb.
Cheddar blocks: unchanged, at $1.8575/lb.
Cheddar barrels: down 0.5¢, to $1.8275/lb.
Grade A nonfat dry milk: unchanged, at $1.5750/lb.
Extra Grade nonfat dry milk: unchanged, at $1.56/lb.
Class III milk: 2¢ lower to 18¢ higher through December 2013. Based on current CME closing prices, the average for November-December 2012 is $20.14/cwt.; the full year 2012 average is $17.51/cwt.; and the 2013 average is $18.45/cwt.
Corn, soybeans and meal futures mixed
Corn: 1¢ to 5¢/bushel higher through July 2013. The 2013 average is $6.80/bu.
Soybeans: November 2012/January 2013 higher; 2¢ to 5¢ lower March through December 2013. The 2013 average is $13.51/bu.
Soybean meal: $0.20 to $1.80/ton higher through September 2013. The 2013 average is $395.05/ton.