Archive for Dairy Markets

Milk Futures Drop Sharply Whole Cash Trade Mixed in Chicago Thursday

At the Chicago Mercantile Exchange milk futures continued lower Thursday while cash trade was mixed but active. Class 3 markets were down across the board trading anywhere from 3 to 25 cents lower with the most action in the front months. February was down 3 cents at 13.98, march fell 22 cents to 14.56 and April fell 25 cents to 14.46. May down 23 cents at $14.82. June through October contracts five to 13 cents lower. The First and Second half averages are now at 14.54 and 16.12. Class 4 markets were quiet on Thursday as only one month traded and the rest were unchanged. The only month that traded was may which lost 15 cents to 16.15.

Dry whey up $0.01 at $0.34. One trade was made at that price. Blocks down $0.0125 at $1.58. One trade was made at $1.5925. Barrels unchanged at $1.4350. Eight trades were made ranging from $1.4325 to $1.4350. Butter up $0.0125 at $2.25. Ten trades were made ranging from $2.2350 to $2.25. Nonfat dry milk down $0.0075 at $0.9850. Twenty-three trades were made at $0.9675 to $0.9825.

Markets Showed Early Gains Then Fell Short in Chicago Wednesday

At the Chicago Mercantile Exchange Milk futures closed mostly lower Wednesday while cash trade was mixed and weekly European dairy prices were reported mostly lower. Early gains in Class III milk reversed after the CME spot products trade began. Class III milk could not sustain the gains of Tuesday. Only February showed  a gain of 1 cent to $14.01/cwt. The remaining months down 3-14 cents with March finishing the day  at $14.78. Second half is still averaging better, showing a July – December average of $16.21/ cwt.

Dry whey down $0.02 at $0.33. Fifteen trades were made ranging from $0.33 to $0.3450. Blocks up $0.0325 at $1.5925. Two trades were made at $1.58 and $1.59. Barrels up $0.0225 at $1.4350. Seven trades were made ranging from $1.42 to $1.4350. Butter down $0.0175 at $2.2375. Four trades were made ranging from $2.2375 to $2.25. Nonfat dry milk down $0.0075 at $0.9925. Two trades were made at $0.9925 to $0.9950.

Mixed Markets Tuesday in Chicago

At the Chicago Mercantile Exchange Milk futures closed mixed Tuesday with sluggish cash trade.  February traded a penny higher to $14.00 per cwt. March jumped 16 cents to $14.88 per cwt. Over the last six sessions April grew 10 cents to $14.85 and the remaining months ranged from even to 7 cents higher. Class IV milk had February milk a penny lower at $15.92 per cwt. March and onward ranged from a penny lower to 11 cents higher in September. 

Dry whey down $0.0050 at $0.35.  Eight trades were made ranging from $0.35 to $0.3550. Blocks unchanged at $1.56.  Barrels up $0.01 at $1.4125.  Butter down $0.0150 at $2.2550.   Nonfat dry milk up $0.0025 at $1.00. 

 

Bumpy Ride For Markets Monday in Chicago

At the Chicago Mercantile Exchange, milk futures closed mixed Monday as the market adjusts to Friday’s USDA reports.  Class 3 markets were mixed on Monday trading anywhere from 8 cents lower to 12 cents higher. February Class III milk up a penny at $13.99. March up a dime at $14.69. April down a nickel at $14.75. The first and half average are now at $14.67 and $16.22. May down 12 cents at $15.10. June through October contracts were two to eight cents lower.

Dry whey down $0.01 at $0.3550. Seven trades were made ranging from $0.3550 to $0.36. Blocks up $0.0325 at $1.56. Three trade were made ranging from $1.54 to $1.56. Barrels up $0.03 at $1.4025. Five trade were made ranging from $1.39 to $1.4025. Butter up $0.0075 at $2.2850. Two trades were made at $2.2750 and $2.2850. Nonfat dry milk up $0.0025 at $0.9975. Three trades were made at $0.9975 to $1.00.

Bumpy Ride For Dairy Markets in Chicago Thursday

On the Chicago Mercantile Exchange Tuesday milk futures and cash dairy prices were mostly up. The Class 3 markets began the session lower and then moved higher after the product trade. Class 3 traded anywhere from 1 – 20 cents higher. For the front months, February was up 3 cents to 13.97, March was up 20 cents to 14.56, and April was up 16 cents to 14.79. May was up $.12 to $15.25. The milk futures from June through next January ranged from zero to eight cents higher. The 1stand 2ndhalf averages are now at 14.68 and 16.25. Class 4 markets were mixed to unchanged trading anywhere from 7 cents lower to 14 cents higher. February rose 5 cents to 15.95.

Dry whey was down $.02 at  $.37 cents per pound. Eleven sales were recorded from $.37 and $.3876. Forty-pound blocks were up $.0525 at $1.51 per pound.  Four sales were recorded from $1.4750 to $1.51 per pound. Barrels were up $.08 at $1.3725 per pound.  Thirteen sales were recorded from $1.2925 to $1.3725. Grade AA Butter was unchanged at $2.2850 per pound.  No sales were recorded. Nonfat dry milk was down $.01 at $.99 per pound.  Four sales were recorded from $.99 to $.9975.

Dairy product prices rally, led by milk powder on Global Dairy Trade

Dairy product prices rose at the Global Dairy Trade auction, moving higher for the fifth consecutive time.

The GDT price index rallied 6.7% from the previous auction three weeks ago. The average price was US$3,265 a tonne, compared with US$3,057 a tonne three weeks ago. Some 23,326 tonnes of product was sold, down from 27,909 tonnes three weeks ago.

Whole milk powder jumped 8.4% to US$3,027 a tonne.

Offer volumes for whole milk powder were down on the previous event, even though they were up 19% on the previous year, NZX dairy analyst Robert Gibson said in a note.

“Firm demand from Asian countries is likely to have helped to support prices,” according to Gibson.

At the latest GDT auction, rennet casein surged 10.9% to US$5,596 a tonne, while anhydrous milk fat climbed 5.8% to US$5,579 a tonne.

Butter rose 4.2% to US$4,445 a tonne, while skim milk powder gained 3.9 %to US$2,534 a tonne.

“Skim milk powder offer volumes leading into this event were down on the previous event, but up on the previous year,” Gibson noted.

Cheddar added 1.4% to US$3,565 a tonne, while lactose advanced 1.3% to US$1,035 a tonne.

Bucking the trend, butter milk powder declined, sliding 3.1% to US$3,158 a tonne.

The gain in rennet casein was “contrary to the decrease in value at the previous event and likely due to smaller volumes,” according to Gibson.

Meanwhile, the decline in buttermilk powder “could have been due to a lift in volumes at the event. With relatively smaller quantities of these commodities sold at the event, volume changes can have a bigger impact on prices.”

For sweet whey powder, no product was offered or sold, or no price was published for the last event, or on both of the two previous events.

The New Zealand dollar last traded at 68.32 US cents as of 1.42pm in New York, compared with 68.96 US cents at the previous close in Wellington.

There were 106 winning bidders out of 177 participating at the 15-round auction. The number of registered bidders was 529, up from 524 at the previous auction.

 

Source: Otago Daily Times

Milk Markets Bounce Back in Chicago Wednesady

On the Chicago Mercantile Exchange milk futures closed higher at midweek supported by a favorable cash trade and improving world prices.  February gained a penny to $13.94. March-June traded 9-16 cents while the remaining months were 1-4 cents higher. Class IV markets were up 9-20 cents in February through May while June and beyond ranged from even to 14 cents higher. 

Dry whey up $0.0125 at $0.39.  Three trades were made ranging from $0.3850 to $0.39. Blocks unchanged at $1.4575.  One trade was made at that price. Barrels unchanged at $1.2925.  Three trades were made at that price. Butter up $0.0075 at $2.2850.  Two trades were made at $2.2750 and $2.2850. Nonfat dry milk up $0.02 at $1.00.  One trade was made at that price.

 

Dairy Markets Drop Down Again in Chicago Tuesday

On the Chicago Mercantile Exchange, milk futures closed lower Tuesday pressured by a mostly lower cash trade and growing supplies.  February- June averaged in at $14.60/cwt and July – December at $16.18. Down 1-14 cents. February Class III milk down a penny at $13.93.  March down three cents at $14.20.  April down three cents at $14.48.  May down a nickel at $15.00.  June through October contracts was seven to 10 cents lower. Class IV milk had limited trades to hold steady. It still trades higher than Class III with a first-half average of $16.18/cwt and Second half at $16.72. For Commodity Risk Management Group, this is Jenny Wackershauser on Know your markets.

Dry whey up $0.0175 at $0.3775.  Nine trades were made ranging from $0.38 to $0.39. Blocks down $0.03 at $1.4575.  Barrels down $0.0050 at $1.2925.  Four trades were made ranging from $1.2925 to $1.2975. Butter down $0.0050 at $2.2775.  Nine trades were made ranging $2.2650 to $2.2775. Nonfat dry milk down $0.01 at $0.98.  Six trades were made ranging from $0.98 to $0.9925.  

CWT Assists with 5.4 million Pounds of Dairy Product Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted 10 offers of export assistance from CWT that helped them capture sales contracts for 1.116 million pounds (506 metric tons) of Cheddar, and Gouda cheese and 4.242 million pounds (1,924 metric tons) of whole milk powder. These products are going to customers in Asia, the Middle East, and South America. The product will be delivered during the period from March through July 2019.

CWT-assisted member cooperative 2019 export sales total 12.844 million pounds of American-type cheeses, 707,684 pounds of butter (82% milkfat) and 6.490 million pounds of whole milk powder to 18 countries in six regions. These sales are the equivalent of 181.9 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program positively affects all U.S. dairy farmers and all dairy cooperatives by strengthening and maintaining the value of dairy products that directly impact their milk price. It does this by helping member cooperatives gain and maintain world market share for U.S dairy products. As a result, the program has significantly expanded the total demand for U.S. dairy products and the demand for U.S. farm milk that produces those products.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT pays export assistance to the bidders only when export and delivery of the product is verified by required documentation.

All dairy farmers and all dairy cooperatives should invest in CWT. Membership information is available on the CWT website.

 

Fonterra focuses on big year ahead

It will be a big year financially for Fonterra, as the dairy co-op moves it focus to getting back to basics after a “tough” 2018.

Chief Financial Officer Marc Rivers told The Country Early Edition’s Rowena Duncum, that Fonterra had plans to pay its debt and to get back to being “the strong co-op that we are.”

As the new CFO, Rivers said his approach would be “finding the truth,” and “being the objective voice … that helps us in making better decisions.”

To achieve this, Rivers said he would surround himself “with the best possible people,” and create an environment where colleagues feel able to “speak their mind.”

“I think that’s really critical, because there are plenty of smart folks around. Just let them have their say and you’ll have a better chance of coming up with the best decision.”

Fonterra had already started making changes with more detailed annual results at the end of last year said Rivers.

‘People really appreciated the amount of disclosure that we provided.”

Also in today’s interview: Rivers talks about his background and pays tribute to former Fonterra chairman John Wilson who died earlier this week.

Listen below:

Source: NZ Herald

Cash Trade Drives Milk Markets Lower In Chicago Monday

On the Chicago Mercantile Exchange Milk futures started the week lower pressured by a lower cash trade. For the front months, February lost 7 cents to 13.96, march lost 15 cents to 14.24 and April lost 11 cents to 14.51. Including January’s settlement price at 13.96, the first and second half averages are now at 14.53 and 16.26

Dry whey down $0.0025 at $0.36.  Seven trades were made at that price. Blocks down $0.0125 at $1.4875.  Barrels down $0.0025 at $1.2975.  Seven trades were made ranging from $2.2975 to $2.30 Butter down $0.0075 at $2.2825.  One trade was made at $2.2850. Nonfat dry milk down $0.0125 at $0.99.  One trade was made at that price.  

Milk Markets Messy Thursday in Chicago

At the Chicago Mercantile Exchange  Class III milk futures closed lower on commercial selling and the mostly lower trade in the cash market. February was down $.01 at $14.02 and March was $.10 lower at $14.36, while April was down $.11 at $14.53 and May was $.14 lower at $15.04. January’s official settlement was at 13.96 leaving the first and second half averages now at 14.57 and 16.31. Class 4 markets were mainly lower in the front months Feb through June traded 3 cents lower to 3 cents higher and September through November traded 1 to 4 cents lower. The rest were unchanged. 

The CME spot product market was mixed as 4 of the 5 products offered traded. Cash butter was down a 1/4 cent at $2.29. One load was sold at $2.30. The last uncovered offer was for one load at $2.29.  Cash butter was down a 1/4 cent at $2.29. One load was sold at $2.30. The last uncovered offer was for one load at $2.29.  Cash cheese barrels were unchanged at $1.30 and 1/4. 17 trades were reported, including 13 at the closing price. Nonfat dry milk was 3/4 of a cent lower at $1. Three loads were sold, including one at the closing price. The last unfilled bid was on one load at $.99 and 1/2. The last uncovered offer was for one load at $1.00 and 1/2.

Milk Markets on the Rise while Cash Dairy Mixed in Chicago Wednesday

At the Chicago Mercantile Exchange Wednesday milk futures were mostly up and cash dairy prices were mixed. First half Class III milk averaged $14.64/cwt and 2ndhalf at $16.27. Up in every month .02-.10.  February Class Three milk was down $.02 at $14.03. March was up $.07 at $14.46. April was up $.07 to $14.64. May was up $.12 to $15.18. The milk futures from June through next January ranged from unchanged to nine cents higher.

Dry whey was down $.01 at $.39 cents per pound. Two sales were recorded at $.39 and $.3950. Forty-pound blocks were up $.0250 at $1.47 per pound. Five sales were recorded from $1.45 to $1.47 per pound. Barrels were up $.04 at $1.3025 per pound. Seven sales were recorded from $1.28 to $1.3025. Grade AA Butter was up $.0075 to $2.2925 per pound. No sales were recorded. Nonfat dry milk was down $.01 at $1.0075 per pound. One sale was recorded at $1.01.

Milk Markets Move Higher in Chicago Tuesday

At the Chicago Mercantile Exchange milk futures were higher Tuesday with a mostly supportive cash market. New Zealand December exports were reported mostly higher but saw large declines in butter and skim milk powder. January class III milk futures unchanged at $13.98.  Milk prices added 7 cents in February, 15 cents in March and 9 in April. May through September contracts were three to six cents higher. Class IV markets ranged from a penny lower to 6 cents higher. Product market results had barrels jumping 5 and a ¼ cents to $1.26 and ¼ following 2 trades and four bids. 

Dry whey unchanged at $0.4050. Blocks up $0.0475 at $1.4450. Three trades were made ranging from $1.40 to $1.43. Barrels up $0.0525 at $1.2625. Two trades were made at $1.2375 and $1.24. Butter up $0.0250 at $2.2850. Two trades were made at $2.2775 and $2.28. Nonfat dry milk down $0.0025 at $1.0175.

Mixed Results in Chicago as Milk Markets Delayed Government Reports

The Chicago Mercantile Exchange started the week with mixed milk futures as the government gets back to work and traders anticipate delayed reports. The January contract expires tomorrow and was unchanged on the day at 13.98 leaving the 1sthalf average at 14.55.  February unchanged at $13.98. March down two cents at $14.24. April down a nickel at $14.48.  The second half prices continue to carry a premium over the 1sthalf, and the second half average at 16.19.

Dry whey down $0.0050 at $0.4050. Six trades were made ranging from $0.40 to $0.4050. Blocks up $0.0075 at $1.3975. Barrels up $0.03 at $1.21. One trade was made at that price. Butter up $0.0150 at $2.26. Two trades were made at $2.2425 and $2.2550. Nonfat dry milk up $0.0075 at $1.02. One trade was made at that price.

CWT Assists with 5.6 million Pounds of Dairy Product Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted 17 offers of export assistance from CWT that helped them capture sales contracts for 4.343 million pounds (1,970 metric tons) of Cheddar and Monterey Jack cheese; 169,756 pounds (77 metric tons) of butter and 1.124 million pounds (510 metric tons) of whole milk powder. These products are going to customers in Asia, Central America, the Middle East, Oceania and South America. The product will be delivered during the period from February through July 2019.

CWT-assisted member cooperative 2019 export sales total 11.729 million pounds of American-type cheeses, 707,684 pounds of butter (82% milkfat) and 2.249 million pounds of whole milk powder to 16 countries in six regions. These sales are the equivalent of 140.6 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program positively affects all U.S. dairy farmers and all dairy cooperatives by strengthening and maintaining the value of dairy products that directly impact their milk price. It does this by helping member cooperatives gain and maintain world market share for U.S dairy products. As a result, the program has significantly expanded the total demand for U.S. dairy products and the demand for U.S. farm milk that produces those products.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT pays export assistance to the bidders only when export and delivery of the product is verified by required documentation.

All dairy farmers and all dairy cooperatives should invest in CWT. Membership information is available on the CWT website.

 

Source: CWT

Milk Futures Down Cash Markets Soften in Chicago Thursday

At the Chicago Mercantile Exchange milk futures were lower again Thursday with a mostly inactive cash market. January was unchanged at $13.98 per cwt. February lost 3 cents while March-December 2019 ranged from 9-14 cents lower.  April down 14 cents at $14.46. May through September contracts were nine to 13 cents lower. At the close, first half 2019 prices were offering $14.48 per cwt and the second half settled at $16.16.   Class IV markets had prices as high as 7 cents in February and as low as 14 cents in July. CME spot product market results were a mixed bag. Butter added a quarter cent following two bids and settled at $2.22 and a quarter cent. Grade A nonfat dry milk traded nine loads and 1 three-quarter cents higher to $1.00 and three-quarter per lb. 

Dry whey down $0.0050 at $0.4150. Five trades were made ranging from $0.4150 to $0.4225. Blocks unchanged at $1.3750. Barrels unchanged at $1.16. Butter up $0.0025 at $2.2225. Nonfat dry milk up $0.0175 at $1.0075. Nine trades were made ranging from $0.9975 to $1.01.

Milk Markets Continue to Fall in Chicago Wednesday

At the Chicago Mercantile Exchange milk futures were lower Wednesday pressured again by a lower cash market. Weekly European prices were reported higher. Class III markets fell anywhere from 1 to 27 cents with the most movement in February to August. April fell the most losing 27 cents finishing at $14.61.  January class III milk futures closed down a penny at $13.98. February down 16 cents at $13.97. March down 27 cents at $14.22. May through September contracts were nine to 29 cents lower. Class IV markets fell 19 to 27 cents from February to July while the rest of the months did not trade. January was unchanged at $15.51.

Dry whey down $0.0450 at $0.42. Four trades were made ranging from $0.42 to $0.4350. Blocks down $0.0150 at $1.3750. One trade was made at that price. Barrels down $0.0175 at $1.16. Two trades were made at that price Butter down $0.0125 at $2.22. One trade was made at that price Nonfat dry milk down $0.0250 at $0.99. Three trades were made ranging from $0.9825 to $0.99.

Three Day Weekend Hits Milk Markets in Chicago

At the Chicago Mercantile Exchange milk futures started the week lower pressured by loses in the cash market.  Class III milk had a hard time keeping the slight strength of early trading and ended the day down $.04-.16/cwt to finish with a first half average of $14.77 and second half at $16.35.  January class III milk futures closed unchanged at $13.99. February down nine cents at $14.13. March down 15 cents at $14.49. April down 17 cents at $14.88. May through September contracts were six to 13 cents lower. Class IV markets are continuing their strength. Only losing $.03-.06/cwt in the months that traded.

Dry whey down $0.04 at $0.4650. Four trades were made ranging from $0.4650 to $0.50. Blocks down $0.01 at $1.39. One trade was made at that price. Barrels down $0.0225 at $1.1775. Three trades were made ranging from $1.1775 to $1.18. Butter down $0.0075 at $2.2325. One trade was made at $2.2350. Nonfat dry milk down $0.0125 at $1.0150. One trade was made at that price.

Cornell professor shares 2019 dairy economy predictions

An agricultural economist broke down in a discussion Wednesday how milk production, popular products, trade and other factors affect the dairy market.

About 20 farmers watched, scribbled notes and raised questions during Cornell University professor Andrew M. Novakovic’s presentation at Dairy Day. Cornell Cooperative Extension’s North Country Regional Ag Team hosted the event and several presentations at the Ramada Inn, 6300 Arsenal St.

Farmers’ earnings for their milk, determined by milk prices, have remained relatively low in recent years, and as production costs continue rising, several struggle to keep up with their expenses. Many have widely blamed low milk prices on an international oversupply of dairy goods.

“The only way we know if we have a surplus is if the prices are too low,” Mr. Novakovic said. “Unless we look at the price, we can’t really tell if there’s a surplus or a deficit.”

Milk production and the demand for dairy products like sour cream, butter, cheese and yogurt has climbed annually since World War II, but Mr. Novakovic said production has outpaced demand in recent years.

Producers, however, may exhibit a shift in supply and demand that can bring a slight benefit to their bottom lines.

“The point is that our supply growth is getting more in line with our demand growth,” Mr. Novakovic said.

The average milk price is expected to rise slightly this year from $16.20 per hundredweight in 2018 to $16.80, but could rise as much as one or two dollars.

Mr. Novakovic said that growing demand for fat-based dairy products, including cheese, ice cream and butter, domestically will improve milk prices slightly, although it will not cure problems fueled by the marketplace glut. Domestic use for fat-based products is projected to jump from 212 billion pounds in 2018 to 216.3 billion pounds this year. Farmers may not experience the uptick in price until later in the year.

“I also think in 2020, we’ll continue to see an increase” in prices, Mr. Novakovic said.

The international marketplace for dairy is a different story from the domestic, and the proposed North American Free Trade Agreement replacement and tariffs will affect it in various ways.

Producers export more skim-based products like nonfat dry dairy powder and whey protein, found in sports drinks, despite typically earning less than cheese and butter because the latter are perishable and, therefore, harder to ship, Mr. Novakovic said. The U.S., however, ships fat-based products, particularly when U.S. chain restaurants such as Pizza Hut and McDonald’s purchase cheese to open franchises abroad.

According to Mr. Novakovic’s presentation, exports for both fat-based and skim-based products are expected to decline this year. As U.S. tariffs from last year raise costs for other goods in Mexico, the agriculture economics professor said customers south of the border have been encouraged to seek out dairy goods from other exporters, such as the European Union and New Zealand.

“We’ll get some of it back (if tariffs are lifted), but don’t expect to get all of that toothpaste back in the tube,” he said.

While tariffs have also had an adverse effect, Mr. Novakovic said a predicted decline in demand for dairy products from Chinese consumers stems from China’s economic growth slowing down. While U.S. companies have explored opportunities to enter markets in Vietnam and Thailand to enhance their export markets, Mr. Novakovic said they couldn’t yield the same demand as their neighbor, with more than 1 billion people.

“In India, there’s potential, but India’s a big dairy country,” he said. “They don’t need our milk.”

Many farmers hope the proposed United States–Mexico–Canada Agreement will, if approved by all three governments, replace NAFTA and help bolster the dairy industry and raise milk prices. Mr. Novakovic, however, said the difference between both agreements is minimal, and improvement to the dairy industry would be “imperceptible” to all save a few companies along the Canadian and Mexican borders.

“I think us in dairy, we won’t notice the difference,” he said.

When asked about how each region’s dairy economy differs, Mr. Novakovic said all areas have “islands” of areas where farmers have experienced strong production and sales except for the southeast. A few examples include Western New York, Western Michigan, Eastern Wisconsin and portions of California.

Northern New York and Vermont, however, have “held their own, but have not really grown,” Mr. Novakovic said.

Source: watertowndailytimes.com

Dairy prices rise as EU starts to sell off milk powder stockpiles

Dairy prices have been boosted by a European Union decision to start selling off warehouses full of skim milk powder it has amassed over the last few years.

The EU has been subsidising European farmers by paying them above market prices for their milk, but then storing it as skim milk powder until conditions improve.

In the latest global dairy auction, prices of all commodities but one lifted 4.2 per cent to an average price of US$3057 per tonne, the highest increase for six months.

ASB analyst Nathan Penny said the bank was now more positive about its farmer forecast payout of $6 per kilogram of milksolids.

“Over the last few years, the spectre of large EU intervention stocks has cast a shadow over skim milk powder prices. Global dairy prices have also been impacted more generally, albeit to a lesser degree. Now though, the EU has sold down a significant portion of these stocks, which looks to be enough to convince the dairy market to release the shackles on skim milk prices.”

Strong sales in December and January 2019 shifted 141,000 tonnes of SMP, leaving only about 22,000 tonnes of intervention stock left.

Whole milk powder – New Zealand’s main dairy export commodity – lifted 3 per cent on the previous auction to US$2777 a tonne. There was also stronger demand for the product.

The price differential between WMP and SMP has recently been significant but is closing.

“That premium which had averaged over 40 per cent between 2016 and 2018 is now down to 15 per cent following the result. This development is giving a timely boost to global dairy prices, going a long way to offset the downward pressure on prices from bumper New Zealand supply,” Penny said.

Rabobank analyst Emma Higgins said buyers were looking to buy SMP while prices were still affordable.

She said the WMP price was a good result given China had imported a significant volume of both WMP and SMP over the last couple of months last year, and stock levels have been replenished in China for the time being.

Good growing weather has seen New Zealand farmers lifting production to the end of November by 1 per cent compared to the year before, and December production would be even higher.

Prices for anhydrous milkfat and butter rose 3.2 per cent and 4.6 per cent respectively. Rennet casein was the only product to fall, by 1.4 per cent.

 

Source: Stuff

USDA provides glance at dairy market

National fluid milk output generally steady, with some slight increases.

Butter output in the U.S. is active as processors capitalize on discounted cream values, according to the U.S. Department of Agriculture’s “Dairy Market News.”

USDA said most churns are full of cream, while butter makers continue seasonally building their stocks for later use, especially for the summer. Print and bulk butter orders from retailers are also surprising stronger than expected in some regions, USDA said.

In regard to cheese, the report noted that cheese production continues to be active in the coastal regions. “While still active in the Central region, producers are reining in manufacturing levels following typically heavy post-holiday inventories,” USDA said.

Milk availability, although readily accessible, has settled somewhat as bottlers are taking priority, the report noted.

Western cheese contacts have reported to USDA that production is outpacing demand.

USDA said there are undoubtedly ample amounts of cheese in warehouses, which has left cheese markets in the U.S. somewhat shaky.

As for fluid milk, USDA said national farm milk output is generally steady, with some slight increases reported.

“Cow comfort has been optimal, but some harsh winter weather has midwestern and northeastern contacts concerned about the upcoming weekend,” USDA explained.

Bottlers are planning to get a jump on increasing supplies ahead of the forecasted winter storms. Spot milk available for cheese remains strong nationally, but the heavy discounts of the post-holiday weeks have ebbed somewhat.

 

Source: Feedstuffs

Milk Market Give Back Gains Thursday in Chicago

At the Chicago Mercantile Exchange milk futures closed lower Thursday as cash prices weakened. Class III finished the day down $0.06-.17 with the first half average finishing at $14.90 per cwt. and July – Dec at $16.44.  January class III milk futures closed down six cents at $14.00. February down 13 cents at $14.14. March down 19 cents at $14.63. April down 15 cents at $15.14. May through September contracts were nine to 16 cents lower. Class IV followed moving down $0.14-27 per cwt. across all months except February. 

Dry whey down $0.0050 at $0.52 cents. Blocks down $0.03 at $1.3875. Barrels down $0.0150 at $1.1850. Butter down $0.0225 at $2.24. Four trades were made ranging from $2.2325 to $2.2525.

Milk Markets Depressed After Mixed Results Wednesday

At the Chicago Mercantile Exchange milk futures closed mostly lower Wednesday while European prices improved. Class III milk finished even to 11 cents lower. The first half average ended at $15.02 per cwt. and the second half at $16.52 respectively.  January class III milk futures closed up a penny at $14.06. February down seven cents at $14.27. March down 11 cents at $14.82. April down 11 cents at $15.29. May through September contracts were five to nine cents higher. Class IV milk had little change and even two single digit losses.

Dry whey up $0.0150 at $0.5250 cents. Six trades were made at $0.5025 and $0.5250. Blocks unchanged at $1.4175. Barrels down $0.01 at $1.20. Four trades were made ranging from $1.1975 to $1.20. Butter up $0.0050 at $2.2625. Three trades were made at $2.2575. Nonfat dry milk up $0.0150 at $1.03. Four trades were made ranging from $1.03 to $1.0425.

Mixed Markets Tuesday in Chicago

At the Chicago Mercantile Exchange Class III milk futures closed mixed Tuesday. Class III milk saw little change as results ranged from 4 cents higher to 4 cents lower.  January milk down two cents at $14.05. February four higher at $14.34. March unchanged at $14.93. April milk steady at $15.40. May through August contracts a penny lower to two cents higher Tuesday. Class IV was also mixed as months finished as high as 7 cents and as low as 7. CME product markets watched cheese prices dropped 2 cents in the barrel and a half cent in the block market, respectively. Grade A nonfat dry milk added a quarter cent a dry whey was up a half cent. Butter closed unchanged. 

CME product markets watched cheese prices dropped 2 cents in the barrel and a half cent in the block market, respectively. Grade A nonfat dry milk added a quarter cent a dry whey was up a half cent. Butter closed unchanged. 

Event 228 of the Global Dairy Trade took place Tuesday as the overall index jumped 4.2%. Products to note moving higher included butter up 4.6%, cheddar 4.2%, skim milk powder strengthening 10.3% and whole milk power jumping 3%. Butter ended up at $1.88 and a half, cheddar at $1.59, skim milk powder at $1.09 and whole milk at $1.26, respectively. 

Global dairy prices continue recovery at auction

International milk prices rose again on Wednesday, marking a two-month winning streak at the Global Dairy Trade auction after falling throughout most of last year.

The GDT Price Index climbed 4.2 percent, with an average selling price of $3,057 per tonne, in the auction held on Tuesday by GDT Events.

The index rose 2.8 pct at the previous sale, and has now gained for four consecutive auctions, after declining for months last year as higher-than-expected supply in New Zealand, the world’s biggest dairy exporter, dampened prices.

Volumes tightened at the latest auction with a total of 27,909 tonnes sold, falling 2.6 percent from the previous one, the auction platform said on its website(www.globaldairytrade.info).

Prices for skim milk powder jumped 10.3 percent, while prices for whole milk powder, the most widely traded item, gained 3 percent.

The auction results can affect the New Zealand dollar as the dairy sector generates more than 7 percent of the nation’s gross domestic product. The currency advanced slightly overnight on the outcome of the dairy auction but declined later on concerns over Brexit to a two-week low of $0.6815.

The auctions are held twice a month, with the next one scheduled for February 6.

The New Zealand milk co-operative, which is owned by about 10,500 farmers, controls nearly a third of the world dairy trade.

GDT Events is owned by New Zealand’s Fonterra Co-operative Group Ltd, but operates independently from the dairy giant.

U.S.-listed CRA International Inc is the trading manager for the twice-monthly Global Dairy Trade auction.

A number of companies, including Dairy America and Murray Goulburn, use the platform to sell milk powder and other dairy products.

Source: reuters.com

Milk Markets Mixed Monday at Mercantile Exchange

At the Chicago Mercantile Exchange Monday Milk futures were sharply down and cash dairy prices were mixed.  2019 Class III markets showed losses on Monday anywhere from two to 18 cents, with the most losses in February to April. January Class Three milk was unchanged at $14.07. February was down $.19 at $14.30. March was down $.13 at $14.93. April was down $.11 to $15.40. The milk futures from May through next December ranged from eight cents lower to seven cents higher. The first and second half averages are now $15.09 and $16.55. 

Dry whey was up $.01 at $.5050 cents per pound. Two sales were recorded at $.50 and $.5050. Forty-pound blocks were up $.0125 at $1.4225 per pound. No sales were recorded. Barrels were down $.0150 at $1.23 per pound. One sale was recorded at that price. Grade AA Butter was unchanged at $2.2575 per pound. No sales were recorded. Nonfat dry milk was up $.0125 at $1.0425 per pound. One sale was recorded at that price.

CWT Assists with 6 million Pounds of Dairy Product Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted 28 offers of export assistance from CWT that helped them capture sales contracts for 4.453 million pounds (2,020 metric tons) of Cheddar, Monterey Jack and Gouda cheeses; 454,152 pounds (206 metric tons) of butter and 1.124 million pounds (510 metric tons) of whole milk powder. The product will be delivered during the period from January through June 2019 and is the equivalent of 59.531 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program positively affects all U.S. dairy farmers and all dairy cooperatives by strengthening and maintaining the value of dairy products that directly impact their milk price. It does this by helping member cooperatives gain and maintain world market share for U.S dairy products. As a result, the program has significantly expanded the total demand for U.S. dairy products and the demand for U.S. farm milk that produces those products.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT pays export assistance to the bidders only when export and delivery of the product is verified by required documentation.

All dairy farmers and all dairy cooperatives should invest in CWT. Membership information is available on the CWT website.

Milk Markets Move Upward in Chicago Thursday

At the Chicago Mercantile Exchange Milk futures on worked their way higher Thursday supported by an improving cash market.  Class III markets were green across the board today gaining anywhere from two to 13 cents.  January class III milk futures closed up three cents at $14.08. February up 13 cents at $14.45. March unchanged at $14.88. April up a dime at $15.42. May through September contracts were two to nine cents higher. The first and second half averages are now at $15.12 and $16.52.

Dry whey unchanged at $0.4875 cents. Blocks up $0.02 at $1.39. Two trades were made at $1.38 and $1.39. Barrels up $0.0025 at $1.2475. Butter unchanged at $2.2350. Two trades were made at $2.2275 and $2.2350. Nonfat dry milk up $0.0225 at $1.0250. Two trades were made at $1.02 to $1.0250.

Milk Markets Mixed Wednesday in Chicago

At the Chicago Mercantile Exchange Milk futures on were mixed at midweek with European dairy prices improving while the shutdown weighs on the market. Class III milk ranged from five cents lower to seven cents higher.  January class III milk futures closed down three cents at $14.05. February down nine cents at $14.32. March unchanged at $14.88. April up a penny at $15.32. May through September contracts were two to four cents higher. Class IV milk was mixed as well. February added three cents, March was up 13 and April lost three cents.  

Dry whey up $0.0050 at $0.4875 cents. Blocks down $0.01 at $1.37. Barrels down $0.0325 at $1.2450. Eight trades were made ranging from $1.2550 to $1.2675. Butter up $0.0050 at $2.2350. Three trades were made ranging from $2.2275 to $2.2350. Nonfat dry milk up $0.0125 at $1.0025. Four trades were made ranging from $1.00 to $1.0050.

US milk price drops 66 cents, averages $14.61 for year

The base price paid to dairy producers for Class III milk in December took a tumble, ending the year on a low note at $13.78 per hundredweight. This is the lowest Class III price since last February, when it sunk to $13.40.

The Class III price finished 2018 with an average of $14.61 — the lowest average level since 2010. The December price is down 66 cents from November and $1.66 lower than December 2017.

While milk prices were bleak to end the year, UW-Madison dairy analysts Bob Cropp and Mark Stephenson are optimistic that 2019 will be better, with only weak increases in milk production forecast and, hopefully, a resolution to trade issues with Mexico and China, which both are big buyers of U.S. dairy products.

In their late-December dairy market podcast, Stephenson said butter and cheese stocks ended 2018 at a relatively high level, keeping a lid on prices.

“Normally, we don’t see cheese inventories growing this time of year,” he said.

Where milk prices go from here hinges a lot on U.S. milk production, which the U.S. Department of Agriculture expects to grow by just 1.3 percent this year. Most of the recent growth has taken place in the western U.S.

“I could see it less than that, even,” Cropp said of growth predictions.

Domestic dairy sales are expected to continue to be positive, except for fluid milk, he and Stephenson said, so a lot depends on the export side of the equation. World milk production has slowed and the dollar is a little stronger, but unless the U.S. resolves lingering trade concerns with China and Mexico, particularly, exports will be down, weighing heavily on farm-level milk prices.

While some market analysts had called for Class III to be near $16 by the end of 2018, that didn’t pan out, Cropp said. He expects prices to move higher in 2019, starting just under $15 in January, moving into the $15s by the second quarter and averaging close to $16 for the year.

But “farmers need more than a dollar improvement,” he said.

After getting off to a slow start due to the holidays, Class III milk finished strong the last week in December, according to the weekly Stewart-Peterson commodity report.

“We saw volume re-enter the market as trading volume in the January 2019 contract surpassed all of 2019 contract volume,” the report stated. “The majority of the volume … came after the spot cheese session that pushed the block/barrel average 3.25 cents higher on the day. This move was driven by Cheddar blocks in a 6-cent up day on one load traded. … The move in the spot market spurred the January and February Class III contracts higher. January gained 18 cents to finish the week at $14.41 and February gained 22 cents to finish the week at $14.67.”

 

Source: Leader Telegram

Government Shutdown Drives Dairy Markets Lower in Chicago Tuesday

At the Chicago Mercantile Exchange milk futures continued lower as the government shutdown weighs on the market. Class III markets were down on the day with all months showing losses except for November which did not trade. Class III markets fell anywhere from four to 13 cents leaving the first and second half averages at $15.06 and $16.45. January class III milk futures closed down six cents at $14.14. February down 16 cents at $14.41. March down a dime at $14.88. April down a dime at $15.31. May through September contracts were four to nine cents lower. Class IV markets also showed losses from seven to 23 cents in the front months while the rest was unchanged. 

Dry whey unchanged at $0.4825 cents. Blocks down $0.02 at $1.38. Barrels down $0.0150 at $1.2775. Four trades were made ranging from $1.2775 to $1.2925. Butter unchanged at $2.23. Nonfat dry milk up $0.0150 at $0.99. Three trades were made ranging from $0.9775 to $0.99.

Government Shutdown Drive Milk Futures and Cash Dairy Lower in Chicago

In Chicago, Milk futures started the week lower pressured in part by negative cash markets. Prices fell on average 10 to 15 cents out through the third quarter of 2019’s calendar. The first half of the year averages $15.15, down 12 cents from Friday’s finish.  January class III milk futures closed down 11 cents at $14.14. February down 17 cents at $14.57. March down 17 cents at $14.98. April down 11 cents at $15.41. May through September contracts were a nickel to 11 cents lower. Class IV markets saw more weakness in the second half of the year and some strength in the first half of the year. The average for the first half finishes at $16.11 cents, up four cents, while the second half of the year averages $16.86, down five cents from Friday’s close.

Dry whey down $0.0075 at $0.4825 cents. Three trades were made at that price. Blocks down $0.0177 at $1.40. Barrels down $0.01 at $1.2925. Five trades were made ranging from $1.2950 to $1.3075. Butter down $0.02 at $2.23. One trade was made at that price. Nonfat dry milk unchanged at $0.9750.

Milk Futures Continue Positive 2019 Momentum in Chicago

At the Chicago Mercantile Exchange Milk futures continued their positive momentum Thursday supported in part by increasing global prices. Class III milk ranged from three cents lower to seven cents higher in 2019.  January class III milk futures closed up two cents at $14.32. February up two cents at $14.77. March up seven cents at $15.14. April up three cents at $15.51. May through September contracts were a penny to four cents higher. Class IV milk harnessed the strength seen in butter and nonfat dry milk, pushing 14-23 cents higher in January-October 2019.

Dry whey up $0.01 at $0.49 cents. One trade was made at that price. Blocks unchanged at $1.4175. Barrels unchanged at $1.3025. Butter up $0.0325 at $2.25. One trade was made at $2.2425. Nonfat dry milk up $0.0150 at $0.9650. Two trades were made at that price.

Dairy prices start 2019 with 2.8 pct gain at GDT auction

Dairy prices are off to a strong start for 2019, with gains registered for all the products on offer at the first Global Dairy Trade auction of the year.

Ths morning’s gain was the third consecutive increase since prices started their decline in May last year.

Prices increased across the board, which was partially due to a decline in offer volumes for all commodities at this event, NZX dairy analyst Robert Gibson said.

Whole milk powder prices, which have the greatest bearing on Fonterra’s farmgate milk price, firmed by 1.2 per cent to US$2705 a tonne from the previous event late last year, while the GDT price index gained by 2.8 per cent.

Skim milk powder prices firmed by 7.9 per cent to US$2201 a tonne, rennet casein by 1.3 per cent US$5123/tonne, lactose by 1.6 per cent to US$948/tonne, butter by 3.9 per cent/$4076/tonne, butter milk powder by 9.3 per cent to US$3252/tonne, cheddar by 3.2 per cent to $3371/tonne and anhydrous milk fat by 3.9 per cent to US$5137/tonne.

The gains were despite a big pickup in domestic production, which was cited as a factor for price weakness last year.

According to the latest available data, New Zealand milk production rose by 2.3 per cent on a milksolids basis in November against November 2017.

Season-to-date production was up 4.9 per cent and by 0.8 per cent for the 12-months to November, also on a milksolids basis.

Dairy co-op Fonterra last month revised down its to a range from $6.00 to $6.30 per kg of milk solids from a previous forecast of $6.25-$6.50 per kg.

The revision was due to the global milk supply remaining stronger relative to demand, which has driven a downward trend on the GlobalDairyTrade index since May, Fonterra said then.

The co-op has maintained its collections forecast at 1,550 million kgMS for 2018/19 and has said an abnormal El Nino weather pattern over summer this could still impact on production.

 
Source: NZ Herald

Dairy prices off to strong start in 2019

Dairy prices are off to a strong start for 2019, with gains registered for all the products on offer at the first Global Dairy Trade auction of the year.

Ths morning’s gain was the third consecutive increase since prices started their decline in May last year.

Prices increased across the board, which was partially due to a decline in offer volumes for all commodities at this event, NZX dairy analyst Robert Gibson said.

Whole milk powder prices, which have the greatest bearing on Fonterra’s farmgate milk price, firmed by 1.2 per cent to US$2705 a tonne from the previous event late last year, while the GDT price index gained by 2.8 per cent.

Skim milk powder prices firmed by 7.9 per cent to US$2201 a tonne, rennet casein by 1.3 per cent US$5123/tonne, lactose by 1.6 per cent to US$948/tonne, butter by 3.9 per cent/$4076/tonne, butter milk powder by 9.3 per cent to US$3252/tonne, cheddar by 3.2 per cent to $3371/tonne and anhydrous milk fat by 3.9 per cent to US$5137/tonne.

The gains were despite a big pickup in domestic production, which was cited as a factor for price weakness last year.

According to the latest available data, New Zealand milk production rose by 2.3 per cent on a milksolids basis in November against November 2017.

Season-to-date production was up 4.9 per cent and by 0.8 per cent for the 12-months to November, also on a milksolids basis.

Dairy co-op Fonterra last month revised down its to a range from $6.00 to $6.30 per kg of milk solids from a previous forecast of $6.25-$6.50 per kg.

The revision was due to the global milk supply remaining stronger relative to demand, which has driven a downward trend on the GlobalDairyTrade index since May, Fonterra said then.

The co-op has maintained its collections forecast at 1,550 million kgMS for 2018/19 and has said an abnormal El Nino weather pattern over summer this could still impact on production.

 

Source: Otago Daily Times

CME: Futures Market Points to Optimism in Feeder Cattle Demand in Q1

Feeder cattle cash prices have been falling for the last several weeks in major feeder cattle markets for 700 to 800-pound steers, reports Steiner Consulting Group, DLR Division, Inc.

In the month of December, most markets have lost ground, continuing a longer term slide that started near the end of October.

In the last month, Washington prices have slipped $5.55 per cwt, one of the largest losses noted from various markets.

Nebraska 700 to 800- pound feeders fared only slightly better and have dropped $4.87 per cwt this month since the first week.

Montana auction prices are down $2.69 per cwt, while Georgia feeders are $1.19 lower.

South Dakota saw a boost mid-month but in the latest week of data were closer with the first week of December, down $0.43 per cwt.

Feeders in the same weight group declined $1.44 in the combined Southern Plains auction this month.

Quite the opposite has been true for the feeder cattle futures market in the month of December.

January, March, and April’s feeder cattle contracts closed last week on a high note, ending the week with the highest daily close values seen in the month of December.

Since the Cattle on Feed report was released on 20 December, the nearby feeder futures contract has climbed $2.88 per cwt.

Similarly, March and April contracts closed Friday $2.60 and $2.40 per cwt higher than the 19 December close values.

The futures market points to optimism in the demand for feeder cattle in the first quarter.

However, feedlots placed fewer cattle in the last three months than compared to a year earlier, and larger calf crops in 2017 and 2018 suggest there should be plenty of cattle available for placement in the first quarter.

Feedlots had a tough year in 2018, which could also limit willingness to pay in 2019 for feeders.

 

Source: The Cattle Site

Strong Global Trade Starts New Year in Positive Note in Chicago

At the CME, Milk futures started the new year in positive territory supported by increasing global markets. Class III markets were mixed in their performance with the average price covering the first half of the year finishing at $15,24.  January class III milk futures closed down a penny at $14.30. February up three cents at $14.75. March up four cents at $15.07. April unchanged at $15.48. May through September ranged from a nickel lower to unchanged. Class IV markets saw stronger performance with the average for the first six months of the year coming in at up 7 cents over Monday.

Dry whey unchanged at $0.48 cents. Blocks down $0.0125 at $1.4175. Two trades were made at $1.41 and $1.4175. Barrels up $0.0125 at $1.3025. Four trades were made ranging from $1.2850 to $1.3025. Butter unchanged at $2.2175. Nonfat dry milk up $0.0125 at $0.95. Two trades were made at $0.95 and $0.9550.

Milk Futures Mixed on Last Day of 2018 in Chicago

Milk futures lightly traded in Chicago on the last day of the year while cash markets saw minimal activity. December Class III milk futures were unchanged at $13.83. January down nine cents at $14.32. February up a nickel at $14.72. March up two cents at $15.03. The milk futures from April through next July ranged from a penny lower to three cents higher.

Dry whey unchanged at $0.48 cents. Blocks unchanged at $1.43. Barrels unchanged at $1.29. Butter unchanged at $2.2175. Three trades were made ranging from $2.2025 to $2.2150. Nonfat dry milk unchanged at $0.9375.

Milk Markets Climb Higher in Chicago Thursday

At the Chicago Mercantile Exchange Class III milk futures closed higher Thursday with traders optimistic about the farm bill and stronger global prices for skim milk powder and butter.  After products finished their trade, Class III markets climbed to higher ground with the average for the first half of 2019 rising 11 cents to $15.14 per cwt. December closed unchanged at $13.84. January 12 cents higher at $14.30. February up eight cents at $14.52. March up nine cents at $14.87. April through November contracts were four to 14 cents higher. The Class IV market saw similar activity rising a dime in its average for the first six months of 2019. It stands at $15.71 per cwt.

Barrels were unchanged at $1.3150. Blocks remained unchanged at $1.41. Dry whey was up $0.0175 at $0.49. One trade was made at that price. Butter was up $0.02 at $2.20. Four sales were made ranging from $2.1925 to $2.20. Nonfat dry milk was up $0.0025 at $0.9375.

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