This week in DairyProfit Weekly: May 14, 2012Print
This week in DairyProfit Weekly:
1) Dairy outlook: USDA’s World Ag Supply & Demand Estimates (WASDE) report, released May 10, raised 2012 U.S. milk production and marketing estimates nearly 3% from 2011, but said growth would be nearly flat in 2013. As a result, USDA lowered the milk price outlook for 2012, with a slight improvement forecast for 2013.
2) Crop impact: Another piece of the improving forecast for 2013 is the outlook for corn supplies and prices. USDA projects 2012/13 corn production at a record 14.8 billion bushels; prices are projected substantially lower. Also, all hay stored on farms on May 1 totaled 21.38 million tons, down 4% from a year ago, but about equal with the 5-year average. The U.S. entered winter with hay stocks at their lowest Dec. 1 level since 1988.
3) DPW Trends: California’s June Class 1 milk prices declined for the sixth consecutive month, down 13¢ from May 2012 and $4.60 from June 2011.
4) DPW Numbers: USDA’s WASDE report indicates 2012 milk marketings, use and ending stocks will be up, but 2013 ending stocks will decline as commercial use increases.
5) DPW Industry: Among all the income and sales numbers in Dean Foods’ quarterly report, the company’s first-quarter Fresh Dairy Direct fluid milk volumes increased 0.4% on a year-over-year basis. This compares to a national volume decline of approximately 2.9%.
DPW Extra: Look for additional dairy news that didn't fit in this week’s DairyProfit Weekly.
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Dave Natzke, Editor
Editorial Director – DairyBusiness Communications
7221 Country Village Dr.
Wisconsin Rapids, WI 54494