DairyBusiness Update for 10.21.13Print
In just eight weeks since being launched industry-wide, the Dairy Leaders of Tomorrow program is being used by 600 students in 33 classrooms throughout Pennsylvania and in five other states across the U.S. Fifteen independent students are also enrolled in the curriculum-based program. Developed by the Center for Dairy Excellence Foundation of Pennsylvania, the Dairy Leaders of Tomorrow program fills a void by preparing students specifically to work in dairy production or agribusiness careers. Read more …
‘Protecting Your Profits’ call is Oct. 23
The Center for Dairy Excellence (CDE) will host a “Protecting Your Profits” conference call on Wednesday, Oct. 23, 12-12:15 p.m. to provide a quick update of the dairy markets and margins. Alan Zepp, CDE risk management program manager, will discuss global and domestic issues that could influence prices for dairy and other commodities in the next 10 months. The call will include a brief review of risk management opportunities available and an update on the status of Livestock Gross Margin for Dairy (LGM-Dairy).
Anyone can participate in the monthly conference call series. There is no charge to participate in the call, but pre-registration is required.
To register, call the center at 717-346-0849 with name, phone number, and e-mail address. Once registered, participants will receive the call-in number and information.
Calls are hosted in a webinar format to be recorded and made available for later viewing. Past Protecting Your Profits calls can be accessed at www.cenerfordairyexcellence.org under “Dairy Information.”
Cash cattle prices have moved higher this fall, supported by small cattle supplies, a generally favorable demand base, and low feed prices that have sent feeder cattle futures prices to record highs. The outlook suggests even higher prices in coming months. Read more …
August dairy products report: More cheese, plenty of butter
USDA’s monthly Dairy Products report, issued Oct. 21, 2013, and the first resurrected USDA dairy report from the government shutdown, shows dairy product output, compared to August 2012 and year-to-date (Y-T-D) estimates:
• Total cheese: 926.1 million lbs., up 3.9%; Y-T-D 7.37 billion lbs., up 2.1%.
• Total Italian cheese: 386.2 million lbs., up 3.8%; Y-T-D 3.14 billion lbs., up 2.1%.
• Mozzarella: 296.2 million lbs., up 3.6%; Y-T-D 2.44 billion lbs., up 1.6%.
• American-type cheese: 381.2 million lbs., up 7.9%; Y-T-D 2.98 billion lbs., up 3.0%.
• Cheddar: 269.9 million lbs., up 7.6%; Y-T-D 2.17 billion lbs., up 3.1%.
• Butter: 135.6 million lbs., up 4.7%; Y-T-D 1.28 billion lbs., up 1.7%.
• Dry milk powders – Nonfat dry milk, human, 106.7 million lbs., up 0.6%, Y-T-D 1.1 billion lbs., down 16.5%; and skim milk powders, 55.1 million lbs., up 36.5%, Y-T-D 399.7 million lbs., up 91.7%.
• Dry whey (total): 73.1 million lbs., down 6.3%; Y-T-D 636.8 million lbs., down 7.1%.
• Yogurt: 422.0 million lbs., up 9.1%; Y-T-D 3.16 billion lbs., up 6.0%.
Mielke’s Market Daily
(A daily wrap-up of dairy markets and the things affecting them, from DairyBusiness Update associate editor Lee Mielke)
Nobody was buying or selling today in the dairy pit at the CME. The block cheese price held at $1.8575/lb., ending eight consecutive sessions of gain, with no activity. Barrels were offered down 0.25¢, to $1.76/lb., but no one covered the 1 offer made, which pulled the barrels 9.75¢ below the blocks.
Butter, on 1 offer, dropped another 1.75¢ this morning, following the same dip on Friday, and recorded the fifth consecutive session of loss. The Double A price now sits at $1.4650/lb., the lowest it has been since Sept. 11, but still well above the year’s low point of $1.36/lb. on Aug. 20.
Chris Hildebrand, risk management consultant at INTL FCStone Chicago, wrote in this morning’s eDairy Insider Opening Bell that “Butter demand seems to be about steady. But there is so much inventory that demand isn't making a dent.” The stored butter isn’t being exported either because of its wrong fat content specifications for the world market.
Cash powder was unchanged this morning as well. Grade A remained at $1.86/lb., although 1 bid at $1.84 went unfilled and 1 offer at $1.87 was ignored. Extra Grade remained at $1.82/lb., following Friday’s 2¢ jump, with nothing happening today.
Today’s market closing prices:
Butter: down 1.75¢, to $1.4650/lb.
Cheddar blocks: unchanged, at $1.8575/lb.
Cheddar barrels: down 0.25¢, to $1.76/lb.
Grade A nonfat dry milk: unchanged, at $1.86/lb.
Extra Grade nonfat dry milk: unchanged, at $1.82/lb.
Class III milk: -1¢ to -17¢ through June 2014. Based on current CME closing prices, the Q4 2013 average is $18.05/cwt.; with an overall 2013 average of $17.83/cwt.; and a 2014 average of $16.90/cwt.
California’s November Class 1 milk prices are to be announced by the California Department of Food and Agriculture tomorrow, and the November Federal order Class I price mover is announced by USDA on Wednesday.
USDA reports rescheduled
The government shutdown resulted in several USDA reports being rescheduled. The Oct. 21 September Milk Production report will be issued on Nov. 1. The Oct. 22 September Cold Storage report will be released Oct. 31, and the Oct. 24 Livestock Slaughter report will be out Oct. 31, along with the monthly Ag Prices report. The next issue of Dairy Market News will be released Friday, Nov. 1.
USDA resumes crop progress update
USDA’s weekly USDA Crop Progress report is back after a shutdown sabbatical.
As of Oct. 20, about 39% of the corn crop in the major 18 corn-producing states was harvested, compared to 85% for the comparable week a year ago, and 53% for the five-year average. About 60% of the crop was rated good to excellent.
About 63% of the soybeans in the 18 major states were harvested, compared to 79% a year ago and the five-year average of 69%. About 57% of the crop was rated good to excellent.
Corn, soybeans, soybean meal futures higher
Today’s futures prices at the Chicago Mercantile Exchange:
Corn: +2¢ to +3¢ through December 2014, settling in a range of $4.44-$4.86/bushel.
Soybeans: +6¢ to +12¢ through November 2014. November 2013 through August 2014 contracts settled in a range of $12.49-$13.03/bushel.
Soybean meal: +$3.30 to +$5.60/ton through December 2014. December 2013-September 2014 contracts settled in a range of $373-$416/ton.
• Dairy market analyst Bill Brooks discusses cheese prices.
• Plus, more on helping South Dakota farmers, and USDA ramps up their reports.
Today on Facebook
• Photo of the Day: Hayley Potts captured a beautiful sunset during the sale preview of the Virginia Tech Showcase Sale on Friday night in Blacksburg, VA. The VT Dairy Club had a very successful sale resulting in an average of $2,055 - stay tuned to our daily news for more results! #HolsteinWorldPOTD
• It's going to be a great week of coverage ahead. Stay tuned for pictures from the Golden Rose Tag Sale, the New England Fall Classic Tag Sale Thursday and Friday, and photos from the New England Convention over the weekend ahead.
• Are you on twitter? Be sure to join the AgChat Foundation's #RancherRelief tweetcast! For every tweet during the special tweetcast Tyson will be donating $10 to the rancher relief fund for those affected by Atlas.
Coming Wednesday in DairyBusiness Weekly:
(Our digital-only magazine)
• Price reports shortchanged producers
• Dairymen The Moo-sical
• Dairylea, DFA merger proposed
• Braedale Goldwyn: Still the talk of the tanbark trail
• Past, present and future of Bonnie Mohr
• Check out our industry briefs, view our product spotlight, see what's happening on social media, listen to our podcasts and more!
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