DairyBusiness Update for Feb. 25, 2013

Mid-Columbia Basin dairy farmers launch ‘Dairy for Life’

Mid-Columbia Basin dairy farmers have launched Dairy for Life, a program that has committed $60,000 to put 25,000 gallons of milk into food banks from Washington’s Yakima to the Tri-Cities over the next 12 months. Second Harvest will be the distributor of this milk into the food bank system.

“The Dairy for Life program will provide milk for folks that we think need and will appreciate it,” said Bill Wavrin, the Mabton, Wash. dairy farmer who is one of the participants in the donation effort. Wavrin is also on the board of directors for the Northwest Dairy Association (NDA), who own and operate Darigold.

Darigold 2% milk in gallon jugs will be distributed by Second Harvest’s branch distribution center in Pasco, Wash., according to Bill Wavrin, the Mabton, Wash. dairy farmer who is one of the participants in the donation effort. Wavrin is also on the board of directors for the Northwest Dairy Association (NDA), who own and operate Darigold. Dairy farm families participating in Dairy for Life include:

• Sunny Dene Ranch LLC  – The Wavrin Families

• DeRuyter Brothers Dairy – Jake and Genny DeRuyter

• Skyridge Farms – Dan and Carolyn DeGroot                 

• deVries Family Dairy – Tom and Heather deVries

• Cow Palace – The Dolsen Families

• Sunnyside Dairy LLC – Aquilini Family, Henry and Lori Oord, and Jon and Lori Wheeler

Butter inventories jump; cheese stocks fairly steady

January 31 butter stocks totaled 206.6 million lbs., up 35% from Dec. 31 and 21% more than January 2012, according to USDA’s latest Cold Storage report. Total cheese stocks, at 1.032 billion lbs., were up 1% from both December 2012 and January 2012. American cheese, at 643.5 million lbs., was up 1% from December 2012 but unchanged from January 2012.

 

Cattle on feed estimates lower 

U.S. slaughter cattle and calves in feedlots with capacity of 1,000 or more head totaled 11.1  million head on Feb. 1, 2013, 6% less than a year earlier. January 2013  placements totaled 1.88 million (1.80 million net), about 2% less than a year earlier. January fed cattle marketings totaled 1.92 million, 6% more than a year earlier.

Cattle and calves on feed in feedlots with capacity of 1,000 or more head represent about 84% of all cattle and calves on feed in the United States.

 

Good reviews USDA's corn/soy projections

The USDA's Interagency Commodity Estimates Committees prepared projections for the 2013-14 U.S. marketing year for corn and soybeans (as well as other crops) presented at the USDA's 2013 Agricultural Outlook Forum on Feb. 22. The projections are consistent with expectations from Darrel Good, University of Illinois ag economist.

For corn, USDA expects planted acreage at 96.5 million, and acreage harvested for grain is expected to be larger than 2012. USDA projects the 2013 U.S. average corn yield at 163.6 bushels per acre. A record large corn crop, near the USDA projection of 14.5 billion bushels, is consistent with Good’s expectation. The marketing year average farm price is projected at $4.80/bushel, down from the $7.20/bushel average expected for the current year. The projection of $4.80/bushel includes the expectation of substantial pre-harvest sales at much higher prices.

For soybeans, USDA projects planted and harvested acreage to increase by a very modest 300,000 and 500,000 acres, respectively. Based on a model similar to the one used for corn, the U.S. average yield is projected at 44.5 bushels per acre, resulting in a crop of 3.405 billion bushels. That would be 390 million bushels larger than the 2012 crop and 46 million larger than the record crop of 2009. Stronger domestic soybean oil demand will result in a marketing year average farm price of soybeans near $11.00/bushel.

 

MARKETS: Butter, cheese prices weaken; Class III futures lower

Today's market closing prices:

Butter: down 2.0¢, to $1.57/lb.

Cheddar blocks: down 2.0¢, to $1.6075/lb.

Cheddar barrels: down 3.0¢, to $1.60/lb.

Grade A nonfat dry milk: unchanged at $1.5050/lb.

Extra Grade nonfat dry milk: unchanged at $1.56/lb.

Class III milk: -2¢ to -26¢ through October 2013. Based on current CME closing prices, the 2012 average is $17.44/cwt.; the 2013 average is $17.81/cwt.; and the 2014 average is $16.50/cwt.

 

Corn mixed; soybean and meal futures lower

Corn: -2¢ to +3¢ per bushel through December 2013. The 2013 average is $6.34/bu.

Soybeans: -1¢ to -10¢ per bushel through December 2013. The 2013 average is $13.78/bu.

Soybean meal: -$3.60 to -$0.80/ton through December 2013. The 2013 average is $391.94/ton.

 

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