This week in DairyProfit Weekly: Aug. 20, 2012

This week in DairyProfit Weekly:

1) DPW Trends: Here’s something we haven't seen in a while: $20/cwt. Class III milk futures prices. Thanks to a surge in Aug. 16 trading, CME Class III contracts closed above $20.00/cwt. for the final three months of 2012.

2) Dairy outlook: Higher feed costs and shrinking dairy producer margins will contract the U.S. dairy herd this year and next. Milk production forecast is cut, and price projections are higher in USDA’s latest Dairy Outlook report.

3) RFS ethanol waiver: The drumbeat for a EPA Renewable Fuel Standard ethanol waiver grows louder. Governors file formal petition, and food industry trade associations join dairy/livestock groups in request. The Renewable Fuels Association says waiver will have limited impact.

4) WUD petition: A petition for an emergency hearing on California’s Class 4b milk pricing formula and a six-month, 50¢/cwt. increase in the minimum price for all classes of milk has drawn responses from dairy producers and processors. Not surprisingly, the opinions differ.

5) DPW Industry: New York hosted a “Yogurt Summit” to help grow the state’s yogurt industry. Steps offered to boost milk production, energy efficiencies.

6) DPW Washington: Monthly updates on dairy product, female dairy cattle and hay exports. Organic pasturing requirements relaxed due to drought.