Archive for Dairy Markets – Page 2

Cropp Bullish for $18 Milk

University of Wisconsin’s Bob Cropp says milk prices could approach $18 by the fall, a more than $4 per hundredweight increase since the beginning of 2019. Cropp says dairy product production is down, stocks are tightening, and everything is indicating stronger prices for the fourth quarter.

“I’m saying in June we’re going to be in the $17s and keep increasing to at least the high $17s for the fourth quarter.  If things really tighten and the feed situation plays out, exports improve, $18 is not out of the possibilities.”    

Since January, Wisconsin has lost more than 300 dairy farms and Cropp says that’s a trend that’s expected to continue nationwide, keeping cow numbers down. He also sees improvements in exports to Mexico by the end of the year with the removal of retaliatory tariffs on cheese.

 

Milk Markets Slightly Higher, Cash Dairy Lower in Chicago Wednesday

On the Chicago Mercantile Exchange milk futures closed higher with little to no movement on the cash market. Class III milk futures had June a penny lower and the second half 6-14 cents higher. The 2nd half average closed at $16.82 per cwt. Class IV milk lost 4-10 cents per cwt June through September. 

Dry whey unchanged at $0.3525. Blocks unchanged at $1.6825. Barrels unchanged at $1.5425. Butter down $0.0350 at $2.3725. Eight trades were made ranging from $2.3725 to $2.39255. Nonfat dry milk unchanged at $1.0450. One trade was made at that price.

Weekly European dairy prices are mostly lower on the week and the year with continued gains in skimmed milk powder. Butter prices continue to post the most losses.

In Oceania milk production reported last week, year over year, April production fell 10% to 4.2 billion pounds. Australia has been hampered by drought all year long and is the main culprit of their drawdown to 1.23 billion pounds. New Zealand production totaled 3 billion pounds in April as rainfalls slowed down as well and pastures dried up.

 

Class III milk drops lower, cash dairy mixed Tuesday in Chicago

On the Chicago Mercantile Exchange Milk futures closed Tuesday lower with a weekend holiday haze over the markets while cash prices remained mixed. Class III milk fell sharply losing 23 cents in June to $16.08 and 12 in July to 16.40. May continues to hold unchanged at $16.38 as we wind down the month of trading. Second half months saw losses of 5-12 cents and finished with an average at $16.70, 30 cents off our peak average of $17 we witnessed last week.

Dry whey down $0.0075 at $0.3525. Two trades were made at $0.3535 and $0.36. Blocks unchanged at $1.6825. Barrels down $0.0375 at $1.5425. Nine trades were made ranging from $1.54 to $1.58. Butter up $0.02 at $2.4075. Two trades were made at $2.4050 and $2.4075. Nonfat dry milk unchanged at $1.0450. Four trades were made at that price.

MFP Payments Helps Drive Milk Futures Higher in Chicago Thursday

On the Chicago Mercantile Exchange milk futures traded mostly higher Thursday as a second Market Facilitation Program payment and increasing dairy cattle slaughter brings optimism to the market. Class III milk was up strongly through June of 2020. Gaining 5 cents in May to $16.38, 10 cents in June to 16.44 and July – Dec months gained 8-12 cents to average $16.87/cwt.

Dry whey down $0.0075 at $0.3575. Two trades were made at $0.3575 and $0.36. Blocks unchanged at $1.6825. Barrels up $0.0125 at $1.6150. Eleven trades were made ranging from $1.6075 to $1.6150. Butter up $0.0475 at $2.3875. Five trades were made ranging from $2.37 to $2.3875. Nonfat dry milk up $0.0050 at $1.0525. Eight trades were made ranging from $1.05 to $1.0525.

USDA announcements of MFP payments also caused Corn, Soybeans, and wheat to drop sharply. Though many details are still unknown, it appears payments will be made to corn, soy, and wheat growers as well as dairy producers. It was not announced what amount each will see. 

CWT-assisted dairy product export sales total 1 million pounds

Cooperatives Working Together (CWT) member cooperatives accepted 6 offers of export assistance from CWT that helped them capture sales contracts for 335,103 pounds (152 metric tons) of cream cheese and 599,657 pounds (272 metric tons) of whole milk powder. The product is going to customers in Asia and South America. The product will be delivered during the period from May through September 2019.

These contracts bring the year-to-date dairy product totals to 26.696 million pounds of American-type and Swiss cheeses, 3.962 million pounds of butter (82% milkfat), 2.308 million pounds of cream cheese and 26.511 million pounds of whole milk powder. The products are going to 24 countries in six regions and are the milk equivalent of 547.1 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, www.cwt.coop

 

Source: CWT

Milk Futures Continue Downward Spiral in Chicago Wednesday

On the Chicago Mercantile Exchange milk futures continued mostly lower at midweek. Class III milk markets lost 9-13 cents per cwt in June-December. The Second half of 2019 closed with an average of $16.77 per cwt. Class IV milk closed mixed ranging from 3 cents lower to 6 cents higher. 

Dry whey down $0.0050 at $0.3650. Three trades were made ranging from $0.3650 to $0.37. Blocks up $0.0025 at $1.6825. Barrels unchanged at $1.6025. Butter up $0.0125 at $2.34. Nonfat dry milk unchanged at $1.0475. Two trades were made at $1.0450 and $1.0475.

Global Dairy Trade Auction Sees First Decline Since November, Ending record gaining streak

The Global Dairy Trade auction index in New Zealand declined for the first time since November. The index declined 1.2 percent from the last event at $3,417 per ton. It was a lightly traded session with declines reported in butter, whole milk powder and anhydrous milk fat. But it wasn’t all doom and gloom. Cheddar cheese shot up 15.2% to $2.20/lb. Skim milk powder (SMP) was up 0.5% to 1.15/lb.  Butter, however, did slide back to $2.40/lb, a drop of 3.2%. Whole milk powder also declined 2.1% to $1.44/lb.

“Demand from China looks to have remained reasonably firm over the last month,” Westpac economists said in a research note. “Ongoing firm demand from China will be key in determining whether dairy prices are able to remain near these levels”.

Prices have been rising due to weak supply from New Zealand, combined with strong demand, particularly from Asia.

The Global Dairy Trade auction is operated by U.S.-listed CRA International Inc. GDT Events is owned by New Zealand’s Fonterra Co-operative Group Ltd, which controls nearly a third of the world dairy trade, but operates independently from the dairy giant.

A total of 15,510 tonnes was sold at the latest auction, up 0.9 percent from the previous sale, the auction platform said on its website.

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 was largely flat on Wednesday, trading just above $0.6500 and lingering near seven-month lows, largely on the back of global trade concerns and this month’s central bank rate cut.

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

The auctions are held twice a month, with the next one scheduled for June 4.

Milk Futures Give Back Some of Last Weeks Gains in Chicago on Tuesday

On the Chicago Mercantile Exchange milk futures closed lower Tuesday pressured by declining world prices.  Class III milk gave back some of its gains from late last week. May was even at $16.29/cwt, but June fell 7 cents to $16.44. The second half months lost 12-17 cents to fall off our $17 average to $16.88. $17 continues to be a strong resistance to rallying milk prices. Class IV milk was unchanged in May to 16.28, July fell 10 cents ot 16.94 and August fell 14 cents to $17.08/cwt.

The CME spot product trade had a similarly mixed day. Dry whey up $0.02 at $0.37. Blocks up $0.0075 at $1.68. One trade was made at that price. Barrels down $0.0225 at $1.6025. Nine trades were made ranging from $1.6225 to $1.6275. Butter down $0.0125 at $2.3275. One trade was made at that price. Nonfat dry milk up $0.0025 at $1.0475. Three trades were made ranging from $1.0425 to $1.0475.

Milk Futures Cross $17 mark for 2nd half of 2019

Milk futures on the Chicago Mercantile Exchange started the week mostly higher while cash markets remain quiet.

May Class III milk down a penny at $16.29. The second half of 2019 ended at $17.00 per cwt. even. CME spot product markets were nearly unchanged across the board. The only settlements were Grade A nonfat dry milk. Dry milk declined a quarter cent following 7 trades, 7 uncovered bids and 10 offers. 

Dry whey up $0.01 at $0.35. Two trades were made at$0.34 and $0.35. Blocks unchanged at $1.6725. Barrels unchanged at $1.6250. Three trades were made ranging from $1.6250 to $1.6275. Butter unchanged at $2.34. One trade was made at that price. Nonfat dry milk down $0.0025 at $1.0450. Seven trades were made ranging from $1.0425 to $1.05.

Milk Markets Flat in Chicago Thursday

On the Chicago Mercantile Exchange milk futures traded mixed Thursday with little to no direction from the cash market. Class III milk markets witnessed very little trade and change Thursday. Months ranged from a penny lower to six cents higher.  The second half 2019 average closed today at $16.73 per cwt. Class IV activity was limited as well. May added 8 cents while the remaining moths were minimally higher. The second half of Class IV for 2019 is averaging $17.36 per cwt. Outside of the dairy complex we saw broad based buying once again. 

CME spot product markets were mainly unchanged on Thursday. Cheddar blocks, barrels, Grad A nonfat dry milk and dry whey each ended even on the day. Blocks closed at $1.65 and three-quarters respectively. Dry milk finished at $1.05 and dry whey at 34 cents per lb.

Mixed Markets on Mercantile Exchange Wednesday

On the Chicago Mercantile Exchange milk futures traded mostly higher Wednesday while cash markets were mixed. Class III milk showed some strength in Wednesday’s trading. May moved lower late in the day falling  2 cents to $16.27/cwt, June gained 5 cents to $16.24 and July gained 10 cents to 16.41. Second half months gained as many as 13 cents to finish with an average of $16.68/cwt

Butter led the market again on Wednesday in the CME spot dairy product trade. Gaining 2 ¼ cent on 8 trades to finish at $2.37 ¼.  Dry whey unchanged at $0.34.  Blocks down $0.0025 at $1.6575.  One trade was made at that price. Barrels up $0.0125 at $1.61.  Four trades were made ranging from $1.61 to $1.6125. Nonfat dry milk down $0.0075 at $1.05.  One trade was made at that price.

Grain markets were up strong early following yesterday’s gains, however, lost some momentum as we closed trading. May corn was up ¾ cent to 3.69 ½, May Soybeans finished up 4 to 8.35 ½ and July Soybean meal gain $1.80 to $299.80/ton.

Milk Markets Lower in Chicago Tuesday

On the Chicago Mercantile Exchange milk futures traded higher Tuesday while cash markets were under pressure.  Class III milk markets ranged from 3 cents lower in May and 7 cents higher in both August and September. June up three cents at $16.19.  July three cents higher at $16.31.  August up six cents at $16.62.  September through January contracts were four to seven cents higher.

Dry whey unchanged at $0.34.  Blocks down $0.0075 at $1.66.  Five trades were made ranging from $1.66 to $1.6625. Barrels down $0.0375 at $1.60.  Ten trades were made ranging from $1.60 to $1.63. Butter down $0.01 at $2.35.  Five trade was made ranging from $2.3325 to $2.35. Nonfat dry milk down $0.0025 at $1.0575.  One trade was made at $1.06.

CWT assists in sales of 1.6 million pounds of whole milk powder`

Cooperatives Working Together (CWT) member cooperatives accepted 4 offers of export assistance from CWT that helped them capture sales contracts for 1.627 million pounds (738 metric tons) of whole milk powder. The product is going to customers in Asia and South America. The product will be delivered during the period from May through July 2019.

These contracts bring the year-to-date dairy product totals to 27.137 million pounds of American-type and Swiss cheeses, 3.962 million pounds of butter (82% milkfat), 1.973 million pounds of cream cheese and 25.911 million pounds of whole milk powder. The products are going to 24 countries in six regions and are the milk equivalent of 544.2 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 are verified by the required documentation.

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

 

Source: CWT

Milk Markets Mostly Lower Monday in Chicago

On the Chicago Mercantile Exchange Monday except for butter which had a strong day, milk futures and cash dairy prices fell, especially block cheese. Class III milk fell 3 cents in May to 16.30, June fell 15 cents to $16.16 Second half months traded 3-10 cents lower with an average at 16.53/cwt. Dry whey was down $.0075 at  $.34 cents per pound. Two sales were recorded at that price. Forty-pound blocks were down $.0125 at $1.6675 per pound.  One sale was recorded at that price. Barrels were down $.0725 to $1.6375 per pound.  Seven sales were recorded from $1.6375 to $1.67.50. Grade AA Butter was up $.02 at $2.36 per pound.  Four sales were recorded from $2.35 to $2.36. Nonfat dry milk was down $.0075 at $1.06 per pound.  One sale were recorded at that price.

Dairy Markets Down Thursday in Chicago

On the Chicago Mercantile Exchange milk futures and cash dairy prices were mostly down Thursday. Class III milk fell 6 cents in May to 16.35/cwt and 8 cents in June to 16.35. Second half months fell 9-16 cents finishing Thursday with an average of 16.64/cwt.  The milk futures from September through next April ranged from zero to fifteen cents lower.

Dry whey was unchanged at $.3475 cents per pound. No sales sales were recorded. Forty-pound blocks were down $.0050 at $1.6975 per pound. One sale were recorded at that price. Barrels were down $.0125 to $1.7250 per pound. Two sales were recorded at that price. Grade AA Butter was up $.0250 at $2.31 per pound. One sale was recorded at that price. Nonfat dry milk was down $.0050 at $1.0675 per pound. No sales were recorded.

Speculation over opening forecasts for new dairy season

Speculation is building as opening forecasts for the 2019-20 dairy season are due to be announced over coming weeks.

In Rabobank’s latest Agribusiness Monthly, dairy analyst Emma Higgins said processors might choose to be more bullish than in previous years, given the supply and demand fundamentals at play.

Rabobank was expecting a milk price of $7.15kgms for the new season which begins on June 1.

Commodity prices remained elevated as the “supply crunch” continued.

United States milk supplies were 0.4 per cent lower for March year-on-year.

Germany, France and the Netherlands continued to act as a handbrake on European milk production, with February milk flows lower by 0.2 per cent year-on-year.

Australian supply was expected to plummet 8 per cent year-on-year to a two-decade low.

In New Zealand, milk flows had pared back and March production was behind 8 per cent compared to the same time last year.

That pulled season-to-date milk collections lower to 3.2 per cent.

In light of the sharp decline in milk flows for March, Rabobank now expected full-season production to land closer to 2 per cent year-on-year by the close of the season, Higgins said.

New Zealand shipments of dairy products to China reached new levels for March with the highest volumes shipped for the month ever.

Rabobank expected a slowdown in import growth before mid-year as the supply chain digested the strong import activity.

In ASB’s latest Commodities Weekly, economists saw upside risks to next season’s $7 forecast, although cautioned again the season was not yet under way and unexpected movements could happen.

Its prediction came with “a large margin of error” and the bank would be watching production numbers in the coming months for signals on the supply-side drivers of the milk price.

Westpac senior economist Anne Boniface also saw some upside risk to Westpac’s $7 forecast for the new season, saying it looked likely it would start “on a firmer footing”.

The ANZ world commodity price index pushed up 2.5 per cent in April, following a revised 4.1 per cent rise in March. That put the index 2.1 per cent ahead of this time last year.

The NZD index lifted 4.2 per cent in March month-on-month as commodity returns in local currency terms also benefited further from the lower New Zealand dollar.

Dairy prices gained 4.4 per cent in April, having moderated from the strong lift recorded the previous month, ANZ agriculture economist Susan Kilsby said.

Markets continued to be supported by tighter global supply which should underpin milk powder and butter prices in the coming months.

Volumes traded in the next month or two would be seasonally low, but as higher volumes of new season product were offered to the market, prices typically tended to come under some pressure.

This season low global supply should help underpin the market which should see prices at least hold near current levels, she said.

 

Source: NZ Herald

Milk Futures Plunge in Chicago Wednesday

On the Chicago Mercantile Exchange milk futures continued lower Wednesday as cash markets and trade tensions with China weigh on markets.  May closed 4 cents lower at $16.41 per cwt. and June lost 12 cents to settle out at $16.43. The second half of 2019 was sold off even more. July through December marks declined 14-18 cents per cwt and closed with a second-half average of $16.76. First quarter 2020 declined 4-11 cents as well. Class IV trade was much more lackadaisical. 2019 prices ranged from a penning higher to 3 cents lower.  The second half 2019 class IV average closed at $17.35 per cwt. CME spot product markets mainly struggled on Wednesday. Butter dropped a penny to $2.28 and a half cents following three trades and one uncovered offer. Blocks fell a half-cent also on three trades and one offer. The block price ended at $1.70 and a quarter cents per lb. 

Dry whey remained unchanged at $0.3475. Blocks down $0.0050 at $1.7025. Three trades were made ranging from $1.7025 to $1.7075. Barrels down $0.0025 at $1.7375. Three trades were made ranging from $1.7375 to $1.74. Butter down $0.01 at $2.2850. Three trade was made ranging from $2.2850 to $2.2925. Nonfat dry milk up $0.0125 at $1.0725. Two trades were made at $1.07 and $1.0725.

Global Dairy Markets Up Slightly while Milk Futures Closed Lower Tuesday in Chicago

For the 11 consecutive twice monthly auction, the Global Dairy Trade (GDT) event in New Zealand reached plus territory today.   The index increased 0.4 percent from the last event at $3,490 per ton. Volume was also low, with just 15,375 metric tons of dairy products changing hands.  Gains by rennet casein, up 3.1 percent, skim milk powder, up 2.8 percent, and anhydrous milk fat, up 1.4 percent offset declines in other categories including butter milk powder, down 10.3 percent.

On the Chicago Mercantile Exchange milk futures closed lower Tuesday despite strength in the cash prices as trade tensions with China weigh on markets. May Class III milk down a nickel at $16.45. June down seven cents at $16.55. July 11 cents lower at $16.69. August down a dime at $16.99. September through January contracts were one to eight cents lower.

Dry whey unchanged at $0.3475. Blocks up $0.0075 at $1.7075. Seven trades were made ranging from $1.6975 to $1.7075. Barrels up $0.04 at $1.74. Two trades were made ranging from $1.7275 to $1.74. Butter up $0.0125 at $2.2950. One trade was made at that price. Nonfat dry milk up $0.0075 at $1.06

CWT-assisted dairy product export sales total 1.4 million pounds

Cooperatives Working Together (CWT) member cooperatives accepted 10 offers of export assistance from CWT that helped them capture sales contracts for 544,542 pounds (247 metric tons) of Cheddar and Colby Jack cheese, 846,575 pounds (384 metric tons) of whole milk powder, and 33,069 pounds (15 metric tons) of cream cheese. These products are going to customers in Asia, North Africa, and South America. The product will be delivered during the period from May through October 2019.

These contracts bring the year-to-date dairy product totals to 27.137 million pounds of American-type and Swiss cheeses, 3.962 million pounds of butter (82% milkfat), 1.973 million pounds of cream cheese and 24.284 million pounds of whole milk powder. The products are going to 24 countries in six regions and are the milk equivalent of 532.3 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.

 

Source: CWT

Milk Prices Start the Week Higher in Chicago

On the Chicago Mercantile Exchange milk futures and cash dairy prices were mostly up Monday.  Class III milk prices were 13 cents higher in May, 1-4 cents higher in June-September and 1-3 lower in the fourth quarter.  Class IV markets were 2 cents lower to 8 cents higher. While milk prices were steady Monday, political news that broke continue to show how vulnerable this market could be moving forward. 

Dry whey was unchanged at $.3475 cents per pound. No sales sales were recorded. Forty-pound blocks were up $.0250 at $1.70 per pound. Five sales were recorded from $1.68 to $1.70. Barrels were up $.0375 at $1.70 per pound. No sales were recorded. Grade AA Butter was up $.01 at $2.2825 per pound. No sales were recorded. Nonfat dry milk was unchanged at $1.0525 per pound. No sales were recorded.

Milk Futures Bounce Back Up Thursday in Chicago

On the Chicago Mercantile Exchange milk futures ended higher Thursday while cash movement was mixed. Class III Milk added 5 cents in May and 9 cents in June, respectively. July through December months jumped 9-12 cents as well. The second half of 2019 average closed Thursday at an average of $16.78 per cwt. Class IV markets were unchanged all the way through 2019. 

Dry whey unchanged at $0.3475. Blocks down $0.0075 at $1.6550. One trade was made at that price. Barrels remained unchanged at $1.63. Seven trades were made at that price. Butter up $0.0050 at $2.2725. Seven trades were made ranging from $2.2675 to $2.2725. Nonfat dry milk up $0.0025 at $1.03. Five trades were made on a range of $1.0250 to $1.03.

Milk Markets Mixed to Start May in Chicago

On the Chicago Mercantile Exchange milk futures ended mixed at midweek following the direction of the cash market. Class III markets removed only a few cents in either direction with summer months being up three to five cents and fall months being down two to three. The average price for the second half of the year now stands at $16.64. Unchanged from Tuesday’s finish, Class four markets saw very little trade but in months that did, prices were lower. The average price in the second half of 2019 now stands at $17.20, down a penny from Tuesday.

Weekly European dairy prices are up on the week and the year.

Dry whey up $0.0075 at $0.3475. Six trades were made ranging from $0.3550 to $0.3475. Blocks down $0.01 at $1.6625. One trade was made at that price. Barrels unchanged at $1.63. Five trades were made ranging from $1.6275 to $1.63. Butter unchanged at $2.2675. Six trades were made ranging from $2.2650 to $2.27. Nonfat dry milk unchanged at $1.04.

Class III milk continues to give back recent gains in Chicago Tuesday

On the Chicago Mercantile Exchange Tuesday milk futures, butter, and powder were down. Class III milk market lost some of the recent gains on Tuesday following the trends we saw Monday in light trading on the CME Spot Product Trade. Class III milk finish out April trading down 1 cent to $15.96/cwt. May fell 13 cents to $16.08, and June was off 16 cents to $16.21. Second half lost 10-15 cents and finished at an average at 16.64/cwt.

Dry whey was unchanged at $.34 cents per pound. No sales were recorded. Forty-pound blocks were unchanged at $1.6725 per pound. No sales were recorded. Barrels were unchanged at $1.63 per pound. No sales were recorded. Grade AA Butter was down $0125 at $2.2675 per pound. Six sales were recorded from $2.2675 to $2.2775. Nonfat dry milk was down $.0050 at $1.0350 per pound. Two sales were recorded at that price.

Class III milk gives back some of last weeks gain in Chicago Monday

On the Chicago Mercantile Exchange milk futures ended modestly lower Monday, scaling back on gains seen last week.  May dropped 11 cents while June was down 2 cents and July down a penny. August through December ranged from 2 cents lower to 5 cents higher.  The second half Class III average at the close now stands at $16.76 per cwt. Class IV changes were mainly non-existent. The 4thquarter watched as 1-4 cents came out of it. The second half Class IV average now stands at $17.22 per cwt. 

Dry whey up $0.0125 at $0.34. Four trades were made ranging from $0.3275 to $0.3375. Blocks down $0.0125 at $1.6725. One trade was made at $1.6750. Barrels remained unchanged at $1.63. Five trades were made at that price. Butter up $0.01 at $2.28. Six trades were made ranging from $2.2675 to $2.28. Nonfat dry milk unchanged at $1.04.

Dairy Markets Climb Higher Thursday in Chicago

On the Chicago Mercantile Exchange Milk futures closed significantly higher Thursday as traders got to business in the futures and cash markets.   May Class III was our market leader gaining as many as 47 cents during trading to settle 45 cents higher at 16.29/cwt. April gained 7 cents to 15.98 and June gained 32 cents to $16.37. Second half months moved 8-20 cents higher to finish with an average of 16.72/cwt. Class IV milk was more mixed May up 3 cent to 16.30/cwt and June down 4 cents to 16.63.

Dry whey unchanged at $0.33. Four trades were made ranging from $0.3275 to $0.33. Blocks up $0.02 at $1.69. Twelve trades were made ranging from $1.68 to $1.69. Barrels up $0.03 at $1.63. Eleven trades were made ranging from $1.61 to $1.63. Butter up $0.0050 at $2.26. Seven trades were made ranging from $2.2550 to $2.26. Nonfat dry milk up $0.01 at $1.03. One trade was made at that price.

Fonterra Australia offers fixed price milk contracts for 2019-20

FONTERRA Australia suppliers have two weeks to decide whether to take up the company’s fixed based milk price option for next season.

Dairy farmers can lock in up to 70 per cent of their annual milk production at a price they want to achieve.

They have until May 7 to lodge their expected price and how much milk they want to contract.

Fonterra Australia’s Farm Source general manager Matt Watt said the dairy processor had customers willing to lock in products at certain prices.

Mr Watt said those purchase prices were worked back to an average milk price.

He said dairy farmers who tendered prices at or below the purchasers’ average price would be contracted.

“They all get the same price,” he said.

If farmers’ tendered prices were above the purchasers’ average price, those tenders would not end up with contracts.

Fonterra said the fixed base milk price was a risk management tool.

Mr Watt said the system gave farmers an opportunity to reduce market volatility and allow them to gain a price they were comfortable with and falls within their budgets.

He said farmers would need to have a good understanding of the costs of their operation.

He said milk suppliers might submit a range of tenders of different volumes at a variety of prices.

The fixed price would be announced in mid-May after matching the supply and demand between farmers and customers.

Mr Watt said the fixed price system accounted for up to 10 per cent of Fonterra’s milk intake.

“What we tend to have is repeat users,” he said. “Farmers who have used it before typically go back and use it again.”

Tasmanian milk suppliers were the biggest users of the system.

Gippsland dairy farmer Stuart Griffin said he had used the fixed base price system since it had been offered by Fonterra from 2014.

The Westbury dairy farmer said certainty of price was the driving factor.

“It allows us to plan better for the season,” Mr Griffin said. “It also gives us downside protection on a proportion of our milk.

“The other benefit is that you get that (contracted) price from day one.”

Mr Griffin said his family’s operation was sometimes successful in gaining a contract while missing out in some years because their tender price was too high.

“We make a calculated decision on what we will tender and what price we’re happy to lock in at,” he said.

 

Source: The Weekly Times

China crisis will have positive impact on US Dairy exports to favorite Asian region

According to recently US government trade data, American exports to Southeast Asia reached a historical high last year, increasing 28% over 2017 to 441,000 tonnes.

At the same time, the country saw 9% growth in overall shipments worldwide in a bumper year for the dairy export trade there.

The supply is abundant all over and competition is definitely here in Southeast Asia. Dairy ingredients and products need a home to go to​,” said Dali Ghazalay, regional director of the US Dairy Export Council (USDEC), who is based in Singapore.

There are some factors these days that no one can control, like barriers and so forth, and Southeast Asia is definitely the best location due to the diverse needs of the market​.”

Shift in focus

The most famous barrier since the Great Wall of China, erected by presidents Trump and Xi, has led many American exporters to shift their focus towards the Asean countries.

The US-China trade war will bring more options to the region in terms products and ingredients from an increasing number of American suppliers interested in entering a market of nearing 650m consumers.

The region may also be used as a stepping stone for ingredients that its manufacturers can process and sell on to the Chinese market, Dali continued.

Directly from the China trade war, we see more eyes on SE Asia​. This is the time for exporters to think about innovating or increasing their product lines with product extensions and new launches​.

Market forces move in mysterious ways. This region is friendly with China, so I’m very sure that importers and manufacturers are looking at ways to work with our US exporters to penetrate the Chinese market. I wouldn’t be surprised, I’m sure it’s happening now​.”

Southeast Asia is now ahead of China and behind only Mexico as the second-biggest export destination for American dairy exports, both in terms of tonnage and value.

Trends emerging

Shipments to the region grew by nearly 100,000 tonnes last year over 2017 thanks to strong orders for whey ingredients, milk powder and cheese, which all reached new all-time records. In contrast, exports to China started off strong but slowed mid-year following strong headwinds amidst retaliatory tariffs.

Though still small compared to North Asian neighbors, cheese exports to Southeast Asia followed a similar uptrend, posting a 15% increase last year to 19,000 tonnes.

Also impressive has been growth in demand for ingredients in regional giants Indonesia and the Philippines. Dairy beverages is also a segment particularly worth watching, especially in Thailand and Malaysia.

An unusual trend has also been emerging whereby more startups and smaller companies have been dominating new beverage product launches.

I see quite increased interest and more product launches in the beverage category. And what is interesting is these players are newcomers, not necessarily the traditional beverage companies we know of. It’s not the big guys, it’s the up-and-coming ones, which makes it a segment to watch​,” said Dali.

Our main focus is on ingredients, though, just from the sheer volume. Infant formula is another important market for us. When it comes to that category, they see our major markets demand higher value dairy ingredients​.”

Regional presence

Increasing numbers of American dairy exporters are investing more in growing their presence in Southeast Asia by setting up offices in the region, especially in Singapore and Indonesia, Dali explains. This has spurred groups like USDEC to increase their support of these companies by laying on more provisions.

Last year’s deal for USDEC to back an innovation center at Singapore Polytechnic has prompted more local application work and research to understand the needs of the region’s end-users.

The agreement allows the council and American dairy suppliers to work with the Food Innovation and Resource Centre at the university to develop innovative products for the local market and provide consumers in the region with more options suited to their specific tastes.

The center was formed in 2007 to provide food companies with technical expertise in new product and process development. It is part of the government’s vision to position Singapore as a leading food and nutrition hub in Asia.

We expect the dairy knowledge and spirit of innovation brought by USDEC and its members will advance progress toward our goal to leverage science and technology to develop food innovations and capture new markets​,” said Loong Mann Na, the century’s director, on signing the agreement.

There is also a need to demonstrate that US dairy ingredients are versatile enough for fast-evolving local applications, Dali says.

That’s one of the reasons for the partnerships we’ve got with the Food Innovation Resource Centre at Singapore Polytechnic. And also with the World Gourmet Summit. It’s about showing, it’s about proving that US Dairy ingredients have got craftsmanship, versatility, variety and innovation that end-users are looking for​.

There’s been a lot of work we’ve been doing in terms of expanding the use of US dairy ingredients and products in various applications. US dairy companies have ramped up a number of activities in Southeast Asia​.”

Source: dairyreporter.com

Milk Futures Reverse Trend and Finish Lower in Chicago Wednesday

Milk futures on the Chicago Mercantile closed lower at midweek as traders gave back some overbought positions. Class III milk was mixed with the 2nd quarter trading 1-4 cents higher while the 2nd half ranged from even to 6 cents lower. The second half of the year is averaging $16.57 per cwt. Class IV was all over the board with markets 7 cents lower in August to 5 higher in July and December.

Dry whey down $0.0050 at $0.33. One trade was made at that price. Blocks down $0.0025 at $1.67. Five trades were made at that price. Barrels up $0.0250 at $1.60. Seven trades were made ranging from $1.5750 to $1.60. Butter down $0.0075 at $2.2550. Four trades were made ranging from $2.25 to $2.2550. Nonfat dry milk up $0.0075 at $1.02. Two trades were made at $1.0175 to $1.02.

Milk Markets Continued Higher Tuesday in Chicago

On the Chicago Mercantile Exchange milk futures continued higher Tuesday supported by improving stocks, exports, and a bullish milk production report.  Class III markets were green across the board trading anywhere from 1 to 5 cents higher. The second quarter average is at $15.95 and the second half average is at $16.60. 2020 Class III markets also moved higher trading anywhere from 5 to 17 cents higher in months January through October. Class IV markets moved higher as well trading 2 to 8 cents higher in months June to November.

Dry whey down $0.0025 at $0.3350. Four trades were made ranging from $0.3350 to $0.3375. Blocks down $0.0025 at $1.6725. Barrels unchanged at $1.5750. Butter down $0.0075 at $2.2625. Seven trades were made ranging from $2.2550 to $2.2650. Nonfat dry milk up $0.0125 at $1.0125. Seven trades were made ranging from $1.0050 to $1.0125.

Milk futures Higher Ahead of Bullish Milk Production Report Monday in Chicago

On the Chicago Mercantile Milk futures were higher Monday ahead of a bullish milk production report.  April was unchanged at $15.92, however May was .13 higher to $15.84 and June up 9 cents to 16.04/cwt. Second half months traded up 5-7 cents and finished the day averaging 16.55/cwt. Class IV milk also showed gains in Monday’s trade. May up 1 cent to 16.26/cwt and June up 7 to $16.68.

Dry whey down $0.0025 at $0.3375. Seven trades were made ranging from $0.3375 to $0.34. Blocks up $0.0075 at $1.6750. One trade was made at that price. Barrels up $0.06 at $1.5750. One trade was made at that price. Butter down $0.0125 at $2.27. One trade was made at that price. Nonfat dry milk unchanged at $1.00.

Dairy Markets Hop Into Easter on a High Note

On the Chicago Mercantile milk futures closed early for the week supported by strong exports.  April and May milk both closed unchanged despite May trading 18 cents higher at its peak. June through December 2019 added 4-8 cents. May is offering producers $15.69 per cwt. June ended at $15.95, while the second half of the year settled with at $16.48 average. The first quarter of 2019 also rose 3-5 cents per cwt. to a $16.08 average. Class IV markets were slightly higher as well. June through December added 1-6 cents per cwt. May settled at $16.25, June at $16.61, and the second half of the year closed with its average at $17.00 per cwt.

Dry whey down $0.0025 at $0.34.  Seven trades were made ranging from $0.34 to $0.3450. Blocks down $0.0050 at $1.6675.  Two trades were made at $1.6675 and $1.6725. Barrels down $0.0750 at $1.5150.  Three trades were made ranging from $1.5150 to $1.5350. Butter up $0.0025 at $2.2825.  Six trades were made ranging from $2.28 to $2.2825. Nonfat dry milk up $0.0050 at $1.00.  Three trades were made at that price. 

Global Markets: 10th straight rise as volumes fall more than 9 percent

The average price was up 0.5 percent to $US3447 a tonne, the 10th consecutive price gain which followed a nearly 1 percent rise in the previous auction.

Volumes fell nearly 9.5 percent on the last auction.

Dairy prices have been rising since late November when they hit a two-year low because of an oversupply on world markets.

The price for whole milk powder, which has a key influence on farmer payouts, fell by 0.7 percent to $US3269 a tonne.

Prices for butter, anhydrous milk fat and cheddar rose, while lactose fell.

Source: RNZ

Class III Milk Futures Continue to Rise in Chicago Wednesday

On the Chicago Mercantile milk futures ended Wednesday mostly higher while European dairy prices were up on the week. Class 3 markets also showed positive results during the session trading anywhere from 9 to 16 cents higher. the front months traded at 15.95 in April, 15.77 in may and 15.95 in June. The second quarter average is now at 15.89. The second half average is now at. 16.49. The 2020 Class 3 markets also saw upward movement trading anywhere from 4 to 18 cents higher in months January through September. Class 4 market moved higher as well trading anywhere from 3 to 10 cents higher in months may to December.

Dry whey down $0.0050 at $0.3425.  Eight trades were made ranging from $0.3425 to $0.3475. Blocks up $0.0150 at $1.6725.  Five trades were made ranging from $1.66 to $1.6725. Barrels down $0.0075 at $1.59.  Three trades were made ranging from $1.59 to $1.5925. Butter up $0.01 at $2.28.  Three trades were made ranging from $2.27 to $2.2825. Nonfat dry milk up $0.0075 at $0.9950. 

CWT Assists with 1.1 Million Pounds of Dairy Product Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted four offers of export assistance from CWT that helped them capture sales contracts for 253,532 pounds (115 metric tons) of Cheddar cheese, 661,387 pounds (300 metric tons) of butter, and 220,462 pounds (100 metric tons) of whole milk powder. These products are going to customers in Asia and the Middle East. The product will be delivered during the period from May through August 2019.

CWT-assisted member cooperative 2019 export sales total 25.668 million pounds of American-type cheeses, 3.466 million pounds of butter (82% milkfat) and 22.397 million pounds of whole milk powder to 22 countries in six regions. These sales are equal to 478.4 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, www.cwt.coop.

 

Milk Markets Lower Monday in Chicago

On the Chicago Mercantile milk futures ended Monday mostly lower while cash markets became more active.   Class III milk futures begun Monday’s trade on a higher note before reversing course lower. April milk fell 3 cents to $15.89, May lost 13 cents to $15.65 per cwt. and June declined 9 cents to $15.74. The second half of 2019 ranged from 7 cents lower in July to 5 cents higher in December. Class IV milk added 3-7 cents per cwt. May through September. Tomorrow, Global Dairy Trade event 234 will be released. We shall see how products fare with that if milk prices can find support to further this $1.60 rally in the April contract that began mid-February. April Class III milk down three cents at $15.89. May down 13 cents at $15.65. June down nine cents at $15.74. July down seven cents at $16.05. August through December contracts were two cents lower to a nickel higher.

Dry whey down $0.01 at $0.3475. Two trades were made at $0.3475 and $0.35. Blocks up $0.0050 at $1.65. Four trades were made ranging from $1.6350 to $1.65. Barrels down $0.02 at $1.5975. Four trades were made at that price. Butter remained unchanged at $2.2575. Nonfat dry milk remained unchanged at $0.9875.

Grain markets on Monday saw corn add 2 cents, soybeans traded 3 and a half cents higher and wheat lost 5-7 cents per bu.

 

Rabobank’s Dairy Quarterly report good news for farmers

Rabobank’s latest Dairy Quarterly Report will give farmers something to smile about says Emma Higgins.

Rabobank’s dairy analyst told The Country’s Jamie Mackay that stalling world production combined with increased demand is a good news double.

“We called it at the end of last year, we said things are going to improve”.

With global supply being tight, there is less product available to export and now New Zealand’s season has joined this trend said Higgins.

Listen below:

“That’s going to really help underpin the commodity price improvement that we’ve seen already, since basically the end of 2018.”

Another factor aiding commodity prices is an “exceptionally robust” demand from China said Higgins, although she did have a couple of warnings about this development.

“We think that stock levels in China are now replenished and we think we’re going to see a lull in terms of Chinese buying over the next couple of months.”

Higgins’ second warning was – winter is coming.

“The IMF today just reforecast their numbers around economic growth. So we’ve seen that come back from 3.5 per cent to 3.3 per cent for 2019.

“The impact of that economic slow down and what effect that might have on consumption for the products that we export needs to be monitored.” 

Despite the risks, Higgins said she remained hopeful for a possible $7.15 forecast Farmgate Milk Price for the 2019/20 season.

 

Source: NZ Herald

Milk Futures Lose Gains From Earlier in Week Thursday in Chicago

On the Chicago Mercantile Exchange Milk futures closed lower Thursday backing away from gains made earlier in the week. Class III Markets fell on Thursday trading anywhere from 5 to 14 cents lower. April fell 6 cents to $15.91, May lost 14 cents to $15.78 and June fell 13 cents to $15.83. 2020 Class III milk also saw losses in months January through April trading 1 to 3 cents lower. Class IV markets fell 2 to 5 cents in the front months with most contracts unchanged.

Dry whey up $0.0025 at $0.3550. Five trades were made ranging from $.03525 to $0.3550. Blocks down $0.01 at $1.6450. One trade was made at that price. Barrels unchanged at $1.5950. Three trades were made ranging from $1.5950 to $1.5975. Butter remained unchanged at $2.2575. Nonfat dry milk remained unchanged at $0.9875.

Class III Milk Reaches $16 in Chicago Wednesday

On the Chicago Mercantile Exchange milk futures inched higher Wednesday while cash markets sat mostly on the sidelines.  Class III milk saw positive moves across 2019 months, April gained 2 cents to $15.97. May gained 7 cents to hit 15.925/cwt and the second half of the year averaged $16.43/cwt.

These followed a terribly quiet day in the CME Spot Dairy Product trade.  Weekly EU prices were higher for butter and whole milk powder and lower for whey powder and cheese. Dry whey remained unchanged at $0.3525. Blocks unchanged at $1.6550. Barrels up $0.0025 at $1.5950. Butter unchanged at $2.2575. Nonfat dry milk remained unchanged at $0.9875.

Milk Futures Mostly Higher Cash Markets Mixed Tuesday in Chicago

On the Chicago Mercantile milk futures closed mostly higher Tuesday after USDA raised the all milk price forecast for the year.  Class 3 markets were mixed trading anywhere from a loss of 3 cents to a gain of 13. April rose 9 cents to 15.95. may was up 13 cents to 15.85 and June rose 12 cents to 15.93. The remainder of the 1st half average is now at 15.91. The second half is now offering an average of 16.40. Class 4 milk was unchanged in April at 15.92 and lost 3 to 14 cents from May to August.

Dry whey unchanged at $0.3525.  Four trades were made on a range of $0.35 to $0.3525. Blocks up $0.01 at $1.6550.  Seven trades were made ranging from $1.6359 to $1.6550. Barrels up $0.0150 at $1.5925.  Six trades were made ranging from $1.5775 to $1.5925. Butter down $0.0125 at $2.2575.  One trade was made at that price.  Nonfat dry milk remained unchanged at $0.9875.  Nine trades were made ranging from $0.9875 to $0.9950.

Milk Futures Start Week Lower Cash Markets Mixed

On the Chicago Mercantile milk futures started the week mostly lower while cash markets were mixed. Class III milk markets were slightly lower Monday. April gained a penny to $15.86 per cwt while May through December fell 1 to 6 cents. The second quarter 2019 average now stands at $15.79 and the second half is offering $16.39 per cwt. Class IV milk saw little to no change.

Dry whey up $0.0075 at $0.3525. Six trades were made on a range of $0.3475 to $0.3525. Blocks down $0.0150 at $1.6450. One trade was made at that price. Barrels up $0.0025 at $1.5775. Ten trades were made at that price. Butter unchanged at at $2.27. Nonfat dry milk remained unchanged at $0.9875. Two trades were made at $0.9875 and $0.99.

Grain markets were mainly lower ahead of Tuesday’s USDA supply and demand report. Corn prices dropped 2 1/2 cents at $3.60 per bushel. Beans weakened 1/2 cents at $9.32 1/4 on new crop while bean meal added $1 per ton. Wheat fell 2 1/2 in Chicago, added a penny in Kansas City and was mixed in Minneapolis.

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