DairyBusiness Update: Dec. 18, 2013Print
January, 2014 Class I milk price jumps $1.11
The Agriculture Department announced the January, 2014 Federal order Class I base milk price this afternoon at $21.48 per cwt., up $1.11 from December 2013, $2.51 above January 2013, and equates to about $1.85/gal.
The two-week AMS-surveyed butter price average used in calculating the Class I value was $1.6406/lb., up 24.9¢ from December. Nonfat dry milk averaged $1.9423, up 5.7¢. Cheese averaged $1.8583, down 1.9¢, and dry whey averaged 56.69¢/lb., down 0.8¢.
Lawsuit update: Soymilk, Muscle Milk
There have been developments in two class action lawsuits brought by consumers in California involving marketing schemes using the term “milk” – but not dairy products, according to Class Actions, LLC, a lawsuit news source.
In one lawsuit, U.S. District Judge Samuel Conti dismissed a proposed class action lawsuit alleging that Dean Foods Co., WhiteWave Foods Co. and Horizon Organic Dairy mislabeled their plant-based milk products as milk when they do not come from cows, finding that this allegation “stretches the bounds of credulity.” The products at issue in the lawsuit were Silk Soymilk, Silk Almond Milk, Silk Coconut Milk, Horizon Organic Yogurt, and Horizon Organic Vanilla Lowfat Milk, among others.
Also, a proposed settlement was reached in a lawsuit accusing CytoSport Inc. of deceptively marketing its Muscle Milk products (Claire Delacruz v. CytoSport, Inc., Case No. 11-cv-3532, United States District Court, Northern District of California). The lawsuit alleged CytoSport inaccurately labeled and marketed certain Muscle Milk beverages and bars by including statements such as “Healthy Sustained Energy,” “Health Fats,” “Good Carbohydrates,” and “0g Trans Fat” on some of its products. The plaintiff claims that these terms inaccurately portrayed the health benefits of the products in violation of California law. Read more ...
Mielke’s Market Daily
(A daily wrap-up of dairy markets and the things affecting them, from DairyBusiness Update associate editor Lee Mielke)
Cash cheese prices jumped again this morning. The blocks were up another 2.25¢, following a 2.25¢ advance yesterday, and 0.25¢ on Monday, and hit $1.9725/lb. another high for 2013. Do I hear $2 coming? One car was sold at $1.96/lb. but 2 unfilled bids at $1.9725/lb. took the price higher on the day. Barrels pole vaulted 5¢ on a single unfilled bid, following a 1.75¢ gain yesterday, and are now trading at $1.89/lb. The spread slipped from 11¢ yesterday to 8.25¢ today, still well above the normal 3-5¢.
Class III futures continued to rise in overnight trade. FC Stone risk management consultant Joe Kobel wrote in this morning’s eDairy Insider Opening Bell that "There were an estimated 270 trades overnight, and prices were 6-18¢ higher, except for the December contract, which was slightly lower.” "Yesterday's GDT results were the match that lit the fire under these contracts," Kobel said. “Increases in CME spot cheese also helped fan the flames.” Well, the fans were running today as well!
Cash butter remained at $1.55/lb. One carload sold at $1.55/lb. and 1 at $1.5475/lb. but an unfilled bid at $1.55/lb. took it back up, and 1 offer at $1.56/lb. was left on the board.
Cash powder was quiet today. Grade A held at the record high $2.11/lb., with 1 bid at that price going unfilled, the first day the price didn’t advance in 6 consecutive sessions. Extra Grade was also unchanged, holding at $2.09/lb., following 3 consecutive sessions of gain. There was no activity.
Today’s market closing prices:
Butter: Unchanged, at $1.55/lb.
Cheddar blocks: Up 2.25¢, to $1.9725/lb.
Cheddar barrels: Up 5¢, to $1.89/lb.
Grade A nonfat dry milk: Unchanged, at $2.11/lb.
Extra Grade nonfat dry milk: Unchanged, at $2.09/lb.
Class III milk: Jan.$19.22, +10¢, Feb.$18.54 +19¢, Mar.$18.39 +30¢. Based on current CME closing prices, the Q4 2013 average is $18.68/cwt.; with an overall 2013 average of $18.00/cwt.; and a 2014 average of $17.88/cwt.
California powder $1.9190/lb.
The California Department of Food and Agriculture announced its latest surveyed nonfat dry milk prices yesterday at $1.9190/lb. for the week ending December 13, on sales of 6.73 million lbs. The price was up from $1.9094/lb. the week before, on sales of 7.34 million lbs.
The Agriculture Department issues its monthly Livestock Slaughter report tomorrow as well as its preliminary estimate of November milk production. The Cattle on Feed report is out Friday.
Thursday on DairyLine:
• Chris Galen, NMPF: Another year with no Farm Bill, but at least we are not heading over a cliff.
• Tom Earleywine, Land O’ Lakes Animal Milk Products: Automatic calf feeders becoming more popular.
Today in DairyBusiness Weekly:
(Our digital-only magazine)
• Up on the rooftop: DairyUS delivering ‘REAL’ dairy message
• Livestock, dairy embrace FDA antibiotic guidance
• Tell your stories
• More milk anticipated in 2014
• One youth’s generosity launches ‘100-Cow-Countdown’
• Breeder spotlight: Quad-R Holsteins
• Volunteers shine bright at World Dairy Expo dinner
• Registration now open for National Genetics Workshop
• Youth spotlight: Steven Nelson
• Check out our industry briefs and show and sale calendar, view our product spotlight, listen to our podcasts and more!
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Friday is last day to enter the holiday dairy photo contest
We want to see your best farm-related holiday photos. Maybe your Holstein is acting as Rudolph, or perhaps you’re dressed like elves by the farm sign. Either way, we hope you’ll share! A grand prize winner will be selected and will receive a new digital camera in addition to a possible future cover on DairyBusiness Weekly. To enter, send your best photo with caption to email@example.com by Friday, Dec. 20.
Rules: One entry per contestant. Photos entered in previous contests are not eligible. High resolution photos are preferred.
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