DairyProfit Update for May 2, 2012Print
April Class III steady, but II, IV lower
USDA’s Ag Marketing Service announced April 2012 federal order manufacturing milk class prices on May 2:
• Class II: $16.20/cwt., down 39¢ from March 2012 and $3.46 less than April 2011 ($19.66/cwt.).
• Class III: $15.72/cwt., unchanged from March, but $1.15 less than April 2011 ($16.87/cwt.). It is $2.29 more than California’s comparable 4b cheese milk price.
• Class IV: $14.80/cwt., down 55¢ from March and $4.98 less than April 2011 ($19.78/cwt.).
Through the first four months of 2012, the Class II price average is $16.85/cwt., down $1.46 from the same period in 2011; the Class III price average is $16.14/cwt., down 55¢ from a year earlier; and the Class IV price average is $15.66/cwt., down $2.84 from January-April 2011.
MARKETS: Barrels up, but Class III futures lower
Today's market closing prices:
Cheddar barrels: up 3.0¢, to $1.4950/lb.
Cheddar blocks: unchanged, at $1.5350/lb.
Butter: down 1.0¢, to $1.3450/lb.
Extra Grade nonfat dry milk: unchanged, at $1.1075/lb.
Grade A nonfat dry milk: unchanged, at $1.1475/lb.
Class III milk: -2¢ to -14¢ lower through December 2012. Based on current closing prices, the 2012 average is $15.63/cwt.; 2013 average is $15.79/cwt.
Corn, soy futures lower
Corn: -8¢ to -17¢/bushel through December 2012. The 2012 average is $5.81/bu.; 2013 average is $5.47/bu.
Soybeans: -18¢ to -25¢ through November 2012. The 2012 average is $14.42/bu.; 2013 average is $12.95/bu.
Soybean meal: -$4.00 to -$7.50 through December 2012. The 2012 average is $407.97/ton; 2013 average is $344.84/ton.
Gould creates FMMO pricing spreadsheet
If you had ever wanted to see how “Advanced” and “Announced” federal order prices are determined, Brian Gould,
dairy economist, UW-Madison, has created a spreadsheet. IIt is located on the UW Understanding Dairy Markets website: http://future.aae.wisc.edu/collection/software/advanced_prices_final_version1.xls . In this spreadsheet the only four average commodity prices needing to be supplied are those values in red. You can change one of the commodity prices and see how the Announced or Advanced class prices are impacted.