Archive for Dairy Markets – Page 2

Fonterra Globaldairytrade Turns South for 5th Time in 6 Auctions

The Global Dairy Trade auction index in New Zealand turned back to the negative side, largely reversing a previous lift, and dragged down by rising supply. Sliding for the fifth time in the past six auctions amid an increase of volume on offer. , the lone product that didn’t trade softer was sweet whey powder as it wasn’t offered for trade. Products to note included butter falling 5.5% to $1.8425 per lb., cheddar declined 2% to $1.74 per lb, skim milk powder dropped 1.6% to $1.125 while whole milk powder closed at $1.3775, down 1.7% for the session. Three other products took hard falls in lactose losing 11% of value, anhydrous milk fat 5.1% and butter milk powder dropped 5.6%.

“This is fairly normal at this time of year as NZ milk supplies start to come online,” said Robert Gibson, dairy analyst at NZX.

Demand was particularly strong from North Asia. However analysts warned that the trade conflict between the United States and China was likely to weigh on the Chinese currency, posing a risk to dairy prices for the rest of the year.

“We have warned that Chinese demand is a key swing factor in the outlook for dairy prices over the coming year….recent developments suggest the outlook for Chinese consumer demand and global growth has deteriorated,” said Anne Boniface, senior economist at Westpac Bank.

The auction results can affect the New Zealand dollar as the dairy sector generates more than 7% of the nation’s gross domestic product.

The currency fell overnight from around $0.6550 to around $0.6525.

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

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

Despite Negative Global Trade Milk Prices Mover Higher in Chicago Tuesday

On the Chicago Mercantile Exchange milk futures were higher Tuesday supported by cash markets. Class III milk prices turned in a solid round of trade on Tuesday. 2019 prices settled 6-13 cents higher while 202 prices grew in single digit values out through October. Class IV saw little change as September lost 6 cents and February was up 2. 

Dry whey unchanged at $0.34. Blocks up $0.0075 at $1.8675. Two trades were made at $1.86 and $1.8625. Barrels up $0.02 at $1.71. Six trades were made ranging from $1.70 to $1.71. Butter up $0.0025 at $2.35. Four trades were made ranging from $2.3450 to $2.3550. Nonfat dry milk up $0.0050 at $1.0225. Four trades were made ranging from $1.02 to $1.0225.

CWT assists with 1.4 pounds of cheese, whole milk powder export sales

Cooperatives Working Together (CWT) member cooperatives accepted 6 offers of export assistance from CWT that helped them capture sales contracts for 507,063 pounds (230 metric tons) of Cheddar cheese, and 881,849 pounds (400 metric tons) of whole milk powder. The product is going to customers in Asia, the Middle East and South America. The products will be delivered during the period from August through November 2019.

These contracts bring the year-to-date dairy product totals to 36.3 million pounds of American-type and Swiss cheeses, 189,598 pounds of anhydrous milkfat, 4.2 million pounds of butter (82% milkfat), 3.6 million pounds of cream cheese and 37.5 million pounds of whole milk powder. The products are going to 26 countries in six regions and are the milk equivalent of 737.5 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program positively affects all U.S. dairy farmers and 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.

The Cooperatives Working Together (CWT) Export Assistance program is funded by voluntary contributions from dairy cooperatives and individual dairy farmers. The money raised by their investment is being used to strengthen and stabilize the dairy farmers’ milk prices and margins. For more information about CWT, visit http://www.cwt.coop/

 

Class III Milk Price Highest in Almost 4 Years Up $3.45 since last year

This week, the USDA announced that the July Federal Order Class III price reached $17.55 per hundredweight. That is the first time since early 2015, the Class III milk price has exceeded the $17.00 mark.  It is $1.28 more than June’s price and $3.45 higher than July 2018. So far, the Class III price has averaged $15.58 during 2019. The Class IV component price was seven-cents higher than last month at $16.90, and $2.76 more than last year.
 

Dairy Markets Riding Roller Coaster after China Announces they would Halt US Imports

On the Chicago Mercantile Exchange milk futures started the week mostly higher in the face of bearish trade news. Then a rollercoaster day started Monday following the announcement from China that they would be halting all imports of U.S. ag products as a response to the most recently announced U.S. tariffs on Chinese goods. Grains, dairy, and livestock markets fell sharply overnight, but rebounded mid-morning as buyers returned to the market.

Class III milk started the day trading lower with most of the markets, falling as much as 14 cents in August, but turned during the CME spot market. Finishing the day with August 15 cents higher to $17.44 per cwt. September gained 2 cents to $17.81 and we see the July – December 2019 average at $17.53 per cwt. Early 2020 saw slight gains of 1-2 cents with and average at $16.63 per cwt.

For cash dairy, dry whey was unchanged at $0.34. Blocks up $0.04 at $1.86. Five trades were made, ranging from $1.82 to $1.86. Barrels down $0.0025 at $1.69. Two trades were made at that price. Butter closed $0.0275 higher at $2.3475. 12 trades were made, ranging from $2.31 to $2.3525. Nonfat dry milk down $0.0025 at $1.0175. Four trades, ranging from $1.0150 to $1.02.

Grain markets were down overnight but rebounded. December corn gained strength into the close to finish 5 ¼ cents higher to $4.14 ¾ per bushel. November soybeans only gained a quarter of a cent to $8.68 ¾ and August soybean meal gained $2.50 to $294.90 per ton. 

 

Markets Continue to Slide Lower in Chicago Thursday

On the Chicago Mercantile Exchange milk futures continued this week’s trend lower Thursday, while cash markets were mixed and lightly traded. Class III milk prices lost 3 to 7 cents in 2019 with the exception of September closing unchanged. 2020 prices also fell ranging from 5-15 cents softer January through July 2020. Class IV milk watched the five remaining months decline 7-17 cents per cwt. 

CME spot product markets had Dry whey unchanged at $0.34. One trade was made at that price. Blocks unchanged at $1.82. Barrels down $0.0050 at $1.6925. Eight trades were made ranging from $1.6925 to $1.70. Butter unchanged at $2.3450. Nonfat dry milk down $0.0150 at $1.02. Two trades were made at that price.

Milk Markets Sell Off to End of July in Chicago

On the Chicago Mercantile Exchange milk futures closed lower again Wednesday, while cash markets were mixed.  Class III milk fell sharply Wednesday. August fell 22 to $17.25 per cwt, September fell 12 to $17.68 and the August – December average at $17.42. 2020 also saw a dip, losing 3-8 cents in first quarter and January – March 2020 averages at $16.64 per cwt. Class IV milk followed the gain in butter, August gained 5 cents to $16.76, September gained 4 to $17.04 and the August – December average is at $17.09 per cwt.

Dry whey unchanged at $0.34. Blocks unchanged at $1.82. Barrels down $0.0250 at $1.6975. Six trades were made ranging from $1.6975 to $1.7150. Butter up $0.0175 at $2.3450. One trade was made at $2.35. Nonfat dry milk down $0.0025 at $1.0350.

Feed prices improved as sell signals fed a bearish market. December corn fell 11 cents to $4.10, November soybeans fell 15 ¼ to $8.81 ½, and August soybean meal fell back below $300 per ton, losing $2.10 to $298.20 per ton.

Australian dairy price up but ag produce devaluation continues

Stuart Armitage, Queensland Farmers’ Federation president

Last week major supermarkets Aldi, Woolworths and Coles announced they were increasing the price on all varieties of their branded fresh milk with 1L bottles now selling for $1.29, 2L at $2.39 and 3L at $3.59. After removing the $1 litre milk retail price cap earlier this year, this is another positive step for dairy farmers across Queensland, who have endured eight years of unsustainable milk prices while key input costs including electricity, water and feed have risen significantly.

These constant price wars between our major supermarkets, while a fundamental tenet of capitalism, devalue food in the consumers’ minds as it gives people a false sense of what it cost to produce it at the standard they are used to. Price ceilings and heavily discounted agricultural produce have set an unrealistic price bias in consumers’ minds, and according to recent analysis by market researchers Ibis World, has led to “untenably low margins” for these same retailers.

Supermarkets are now bolstering their bottom lines by “shifting away from discounting and towards profit” with competition becoming more “rational” in the grocery sector and specials down by 17 per cent, which should only lead to one thing: higher prices.

Farmers in this country are among the world’s best at growing food, fibre and amenity to the highest quality and ethical standards. As a major link to consumers, supermarkets have a key role to play in educating them of this fact and ensuring they are not misled into thinking that cheap imported products come with the same credentials, when often they do not.

Cost of living pressures are rising for everyone, but consider that Australia remains one of only eight countries in the world to spend less than 10pc of household income on food each year. While most consumers say they’ll buy Australian-made products they vote with their wallets and don’t follow through. It is incumbent upon supermarkets to make sure consumers know what they are purchasing when reaching for non-Australian grown and made products.

 

Source: Queensland Country Life

Milk Markets See Double Digit Losses in Chicago Tuesday

On the Chicago Mercantile Exchange milk futures closed lower again Tuesday on technical selling, while cash markets were mixed. Class III milk markets witnessed double digit losses between August 2019 through March 2020. April 2020 through August 2020 ranged from 3 to 8 cents lower. Class IV markets were also lower. 2019 months were even to 8 cents softer. 

The spot product market watched blocks down $0.0050 at $1.82. Three trades were made ranging from $1.82 to $1.8325. Barrels up $0.0025 at $1.7225. Eight trades were made ranging from $1.7225 to $1.74. Butter down $0.0225 at $2.3275. One trade was made at that price. Nonfat dry milk up $0.0025 at $1.0375. Dry whey unchanged at $0.34.

Milk Markets Start Week Lower in Chicago

On the Chicago Mercantile Exchange milk futures closed lower Monday, while cash markets were mixed.  Class III milk was off a penny in July to $17.47 per cwt, down 5 in Aug to $17.61 and the rest of the second half months were down 3-5 cents and show an average at $17.67 per cwt. 2020 also lost a bit, falling 5-7 cents in Jan- March and averages at $16.81 per cwt. Class IV milk also was weaker on Monday. July was unchanged at $16.90, August fell 6 to $16.77 and the second half average came in at $17.07 per cwt.

Dry whey down $0.0125 at $0.34. One trade was made at that price. Blocks unchanged at $1.8250. Barrels unchanged at $1.72. Two trades were made at that price. Butter down $0.02 at $2.35. Four trades were made ranging from $2.3475 to $2.3650. Nonfat dry milk up $0.0050 at $1.0350. Six trades were made ranging from $1.03 to $1.0350.

The grain and feed markets continue their range-bound trade but were up slightly Monday. December Corn gained 2 ½ cents to $4.27 per bu., November soybeans gained 3 ¼ to $9.04 ¼, Dec Chicago wheat gained 4 ¼ to $5.08 ½ and August Soybean meal gained $1.10 to $304.20 per ton.

Milk prices are up, but feed too

At the supermarket shoppers are now paying more for dairy products like milk, yogurt, and cheese. And after a year of low prices, dairy farmers are finally getting more money, more than a dollar more per hundred-weight.
 

“So last year we were getting maybe $14.50 per hundred-weight, sometimes $15.00. This year class three has come up to $17.40,” said Darren Tabor a dairy farmer our of Shoshone.

 
In fact, Dairy analysts say the price of milk could go up another 60-cents a gallon next month. “Finally! It’s nice to see that prices are breaking upwards, shattering the ceiling that’s kept prices down. We just hope that we can continue on because inputs are going up too,” said Mike Garner of Heglar Creek Farms out of Raft River.
 
One of the main reasons for the higher prices is due to fewer cows producing milk, not only in Idaho but across the nation and farmers, are barely meeting demand. When the cost of feed went up last year, farmers cut back on their cows. The rise in milk prices may have a ripple effect on other dairy products, including yogurt, cheese, and ice cream. While the cost of milk is good news for dairy farmers, the cost of feed is also going up.
 
“While hay is $160 a ton delivered, that’s good, but I’m also a hay producer,” said Tabor. “Hay will go up later in the season but we could be short on supply. Feed corn is a concern, we had a killing frost on the 21st of June, so I had 400 acres of corn that went backward and I don’t know how that will play out, but it’s not going to be good.”
 
 

Dairy Margin Coverage (DMC) Weekly Report on Enrollment, Production and Payments Now Available

The U.S. Department of Agriculture’s Farm Service Agency (FSA) opened enrollment for the Dairy Margin Coverage (DMC) program on June 17 and began issuing program payments to producers on July 11. Weekly DMC program enrollment, production and payment updates will be posted every Monday at 2:00 PM Eastern. To obtain the latest in program DMC delivery data, click here.

Authorized by the 2018 Farm Bill, DMC replaces the Margin Protection Program for Dairy (MPP-Dairy). The program offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

DMC provides coverage retroactive to January 1, 2019. To date, 2019 income over feed cost margins have triggered DMC payment for January, February, March, April and May.

Enrollment for DMC ends on Sept. 20, 2019. For more information, visit farmers.gov DMC webpage.

 

Milk Markets Mostly Lower Thursday in Chicago

On the Chicago Mercantile Exchange milk futures closed mostly lower Thursday, taking back earlier week gains while cash markets were mixed.  Class III milk was mixed during Thursdays trade. July finished up 5 cents to $17.46, August lost 2 cents to $17.69, and September fell 6 to $17.96. We continue to have a hard time holding prices above $18. The Second half average is at $17.70/cwt. First quarter of 2020 was down 7-8 cents and averaged at $16.86/cwt. Class IV milk saw gains of 3-8 cents with July unchanged at $16.90, and the second half average for Class IV milk at $17.12/cwt.

he CME spot product trade was quiet, Dry whey down $0.0025 at $0.3550.  Two trades were made at that price.    Blocks down $0.0025 at $1.83.  Five trades were made ranging from $1.8275 to $1.83. Barrels up $0.0025 at $1.72.  Six trades were made at that price.  Butter unchanged at $2.36.  Nonfat dry milk up $0.0125 at $1.03.  Ten trades were made ranging from $1.02 to $1.0325. 

Milk Futures Pass $18 Mark in Chicago Wednesday

On the Chicago Mercantile Exchange milk futures finally edged passed the $18 market while cash markets, declining stocks, and production provide strength. July through December 2019 added 1-7 cents and moved the second half average up to $17.70/cwt. The first half of 2020 ranged from even to 9 cents higher. First half 202 settled Wednesday at $16.96/cwt. Class IV milk was mixed in 2019 ranging from 4 lower to 4 higher. The second half of 2019 closed with an average of $17.08/cwt. 

CME spot product markets on Wednesday saw Dry whey up $0.0125 at $0.3575. One trade was made at $0.3475. Blocks up $0.0025 at $1.8325. Barrels unchanged at $1.7175. Two trades were made at $1.71 to $1.7125. Butter unchanged at $2.36. Nonfat dry milk up $0.0075 at $1.0175. Four trades were made ranging from $1.0125 to $1.0175.

The grain markets were mixed on Wednesday. Despite coming into this morning’s session 5 cents higher, the corn market reversed course and closed a penny lower at $4.3075 per bu. Soybeans traded 5 cents stronger to end with a new crop price of $9.08 per bu. The wheat complex was up 8 cent sin Chicago, 6 in Kansas City, and gained a penny in Minneapolis.

CWT-assisted dairy product export sales hit 4.2 million pounds

Cooperatives Working Together (CWT) member cooperatives accepted 17 offers of export assistance from CWT that helped them capture sales contracts for 1.6 million pounds (724 metric tons) of Cheddar and Monterey Jack cheese, 396,832 pounds (180 metric tons) of cream cheese and 2.2 million pounds (1,000 metric tons) of whole milk powder. The product is going to customers in Asia, Oceania, and South America. The product will be delivered during the period from July through November 2019.

These contracts bring the year-to-date dairy product totals to 35.6 million pounds of American-type and Swiss cheeses, 189,598 pounds of anhydrous milkfat, 4.2 million pounds of butter (82% milkfat), 3.6 million pounds of cream cheese and 37.6 million pounds of whole milk powder. The products are going to 26 countries in six regions and are the milk equivalent of 731.1 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: Hoard’s Dairyman

CWT-assisted dairy product export sales reach 4.8 million pounds

Cooperatives Working Together (CWT) member cooperatives accepted 21 offers of export assistance from CWT that helped them capture sales contracts for 3 million pounds (1,377 metric tons) of Cheddar, 35,274 pounds (16 metric tons) of anhydrous milkfat (AMF), 108,027 pounds (49 metric tons) of cream cheese and 2.585 million pounds (719 metric tons) of whole milk powder. The product is going to customers in Asia, Central and South America, the Middle East and North Africa. The product will be delivered during the period from July through December 2019.

These contracts bring the year-to-date dairy product totals to 33.989 million pounds of American-type and Swiss cheeses, 189,598 pounds of anhydrous milkfat, 4.213 million pounds of butter (82% milkfat), 3.247 million pounds of cream cheese and 35.360 million pounds of whole milk powder. The products are going to 26 countries in six regions and are the milk equivalent of 697.2 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

Australian milk prices need to rise, dairy judge says

INDUSTRY IN NEED: Queensland Dairy Showcase judge Greg English, Eachamvale, Malanda in Gatton last week. He says that milk prices need to rise to help keep farmers in the industry.

If you ask dairy farmer Greg English what is needed help the dairy industry, his answer is pretty straight forward.

“The price that people pay in supermarkets for milk has to go up and that price has to come to the people who produce the milk,” he said.

“You only have to look at the number of people who are exiting the industry all around Australia to know that things are tough.” 

Mr English, Eachamvale, Malanda was down in Gatton to judge the supreme awards in the Queensland Dairy Showcase

“I judged at the first Queensland Dairy Showcase here 10 years ago so it was an honour to be invited back 10 years later to judge the supremes,” he said.

“The quality particularly within the Illawarras and the Jerseys was outstanding but the overall quality of everything was very high.”

Mr English said given the tough times challenging the dairy industry, events such as the showcase were important to highlight the work of the dairy farmers.

“All of Australia needs to know where their food comes from, they need to know that in Australia we produce top quality food and we need to be paid more for it,” he said.

“I think people just need to realise they need to pay more for quality food. Whenever the price of milk goes up there’s always a public outcry but a lot of things go up in price at the same time and nobody bats an eyelid.

“When milk goes up in price even by one or two cents, people think the world’s going to come to an end but it won’t.”

Mr English said skyrocketing input costs were putting dairy farmers in a tough spot across the entire country.

“Last year our cotton seed cost us $290 per tonne, this year it’s costing us $590 per tonne. So basically it’s doubled in price but the price we get for our milk hasn’t shifted at all.”

 

Source: Queensland Country Life

 

Milk Markets Mixed Tuesday in Chicago

Class III milk futures were mixed, mostly steady on the Chicago Mercantile Exchange.  July fell a penny to $17.40, August fell 3 cents to $17.66, but September – November were unchanged and December- February of 2020 actually saw a move 1-5 cents higher. Overall the mixed day gave us a second half average for 2019 at $17.66/cwt and first quarter of 2020 is averaging $16.86. Class IV milk was unchanged in July to 16.90, fell 6 cents in August to $16.84 and has a second half average at $17.07/cwt.

Cheese had large gains on Tuesday as cash cheese blocks were $.0375 higher at $1.83. Seven loads were sold, including six at the closing prices. The last unfilled bid was for one load at $1.8225 and the last uncovered offer was on two loads at $1.83. Barrels were a $.005 higher at $1.7175. Five loads were sold at that price. The last unfilled bid was for one load at $1.7125 and the last uncovered offer was on one load at $1.76. Nonfat dry milk was up $.0025 at $1.01. Three loads were sold at $1.01. The last unfilled bid was for one load at $1.01 and the last uncovered offer was on one load at $1.0125. Butter was down $.015 at $2.36 with one load sold at that price. The last unfilled bid was for one load at $2.30 and the last uncovered offer was on one load at $2.38. Dry whey was $.0025 higher at $.3450 with one load sold. The last unfilled bid was for one load at $.3425.

A mixed day in the grain and feed markets. December corn gained 4 ¾ to 4.31 ½ cents, November Soybeans fell 2 cents to $9.03 per bu., and August soybean meal fell $2 to $306.40/ton.

Milk Futures Lower in Chicago Monday

On the Chicago Mercantile Exchange milk futures closed mostly lower Monday while cash trade was mixed. Class III milk market results were mixed to begin the week. Prices ranged from 6 cents higher to 6 cents lower July 2019 through June 202. First half 2020 prices even traded as high as $17 per cwt on it’s average. Class IV milk dropped 4-11 cents August through January 2020.

Dry whey up $0.0025 at $0.3425. One trade was made at that price. Blocks up $0.0125 at $1.7925. Barrels up $0.0075 at $1.7125. Two trades were made at $1.71 to $1.7125. Butter down $0.0225 at $2.3750. Eight trades were made ranging from $2.3750 to $2.3850. Nonfat dry milk unchanged at $1.0075.

Markets Rally in Chicago Thursday

On the Chicago Mercantile Exchange milk futures continued their rally and closed mostly higher Thursday while cash trade was mixed. Class III milk markets closed Thursday slightly higher. July added 11 cents while August through November gained 2-3 cents and December declined 2 cents. 2020 prices added 2-10 cents out through October. Class IV markets were 3-8 cents higher September 2019 through February 2020. 

Dry whey up $0.01 at $0.3350. Two trades were made at $0.3275 and $0.3350. Blocks up $0.0050 at $1.78. Barrels up $0.0150 at $1.7050. Two trades were made at $1.70 and $1.7050. Butter down $0.0050 at $2.41. Eighteen trades were made ranging from $2.4050 to $2.4225. Nonfat dry milk unchanged at $1.0275.

Grain prices continued to slide on Thursday following a cooler and wetter forecast change. The corn market lost 11.25 cents and settled at $4.2975 per bu. Soybeans declined a penny and a half to $8.99 per bu. The wheat complex softened 12 cents in Chicago, 9 cents in Kansas City and 3 cents in Minneapolis.

Class III Milk Makes a Come Back Thanks to Global Markets Wednesday

On the Chicago Mercantile Exchange milk futures closed mostly higher Wednesday as strength from global markets continues while cash trade was mixed. July finished unchanged at $17.31 but the remaining months saw double digit gains. August up 17 cents to $17.67, September also gained 17 to $17.89 and the second half averaged at $17.61/cwt. First quarter of 2020 also saw gains of 16-18 cents and averages at $16.75. Class IV milk was not as robust. July fell 1 cent to $16.90, August gained 2 cents to 17.10 and the second half finished the day averaging $17.18/cwt

Dry whey up $0.0025 at $0.3250. One trade was made at that price. Blocks unchanged at $1.7750. Barrels unchanged at $1.69. Butter down $0.02 at $2.4150. Ten trades were made ranging from $2.41 to $2.4350. Nonfat dry milk down $0.0075 $1.0275.

Grain and Feed prices were mixed on Wednesday December corn gained a quarter of a cent to $4.41 ¾, November Soybeans fell 5 ½ to $9.00 ½ /bu, and Aug Soybean meal finished the day down $0.90 to $307.50/ton.

Global dairy prices jump 2.7%, ending two-month losing streak

Global dairy prices rose, ending a two-month falling streak, in an auction held early on Wednesday, supported by strong demand for milk powder from Asia and the Middle East.

The GDT Price Index climbed 2.7%, with an average selling price of $3,412 per tonne, at the fortnightly auction. The index had fallen 0.4% at the previous sale. Gains were led by a boost in prices for milk powders, with whole milk powder, the most widely traded item, gaining 3.6% and skim milk powder jumping 3.8%.

“Milk powder prices strengthened in response to stronger demand from south east Asian countries and (the) Middle East,” said Robert Gibson, dairy analyst at NZX.

Global milk supply was expected to remain relatively subdued throughout the rest of the year, pointing to further price gains, especially if demand held up in China, according to analysts.

“One crucial development we will be keeping a close eye on is how Chinese demand evolves in the coming months,” said Anne Boniface, senior economist at Westpac Bank. “Demand for dairy products in China seems to be holding up well, despite growing headwinds for the Chinese economy and trade tensions.”

A total of 25,000 tonnes was sold at the latest auction, an increase of 1.2% from the previous one, the auction platform said on its website.

The auction results can affect the New Zealand dollar as the dairy sector generates more than 7% of the nation’s gross domestic product.

However the kiwi currency was trading down 0.3% at around $0.6695 on Wednesday morning, in response to a stronger U.S. dollar.

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

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

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

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

Source: af.reuters.com

Global Markets Drive Milk Markets Higher in Chicago Tuesday

On the Chicago Mercantile Exchange milk futures closed mostly higher Tuesday picking up some strength in global markets while cash trade was mixed.  Class III milk prices results had July futures down two cents while August – December months gained 6-14 cents. The 2nd half of 2019 is offering $17.47 per cwt. Class IV milk was also up to the effect of 3-7 cents August through November. Grain prices had a weak performance on Tuesday as corn dropped 5 ¾ cents, soybeans were down 14 cents, and the wheat complex lost 1-3 cents. 

The CME spot product market followed GDT with mixed results.  Dry whey up $0.0025 at $0.3225. One trade was made at that price. Blocks up $0.0125 at $1.7750. Barrels down $0.0225 at $1.69. Nine trades were made ranging from $1.69 to $1.71. Butter up $0.0050 at $2.4350. Four trades were made ranging from $2.43 to $2.45. Nonfat dry milk down $0.0025 $1.0250.

Milk Futures Continue to Fall

On the Chicago Mercantile Exchange Milk futures closed lower Monday along with cash trade as the market continue to price correct. Class III milk continue to fall. July finished down 2 to $17.33, August was down 12 to $17.43 and September fell 10 to $17.62. The second half averaged at $17.40/cwt. Class IV milk was unchanged in July at $16.91, fell 4 cents in Aug to $17.02 and Class IV averaged $17.12/cwt

Dry whey down $0.0025 at $0.32. One trade was made at that price. Blocks down $0.0250 at $1.7625. Barrels down $0.0275 at $1.7125. Six trades were made ranging from $1.7125 to $1.7375. Butter up $0.0175 at $2.43. Five trades were made ranging from $2.4525 to $2.4375. Nonfat dry milk unchanged $1.0275. Two trades were made at $1.0250 and $1.0275.

Low Activity and Lower Markets in Chicago Thursday

On the Chicago Mercantile Exchange milk futures closed lower Thursday while cash trade was mostly inactive. Class III milk gave back some of its recent gains. July fell 2 cents to 17.35, Aug down 6 to 17.69 and our second half months saw losses of 2-6 cents with an average at $17.63/cwt.

The CME spot product trade was much quieter.  Dry whey unchanged at $0.3225.  One trade was made at that price. Blocks unchanged at $1.83. Barrels unchanged at $1.7675.   Butter up $0.0025 at $2.41.  One trade was made at that price. Nonfat dry milk down $0.0075 at $1.03.  Two trades were made at $1.03.

Milk Futures and Cash Dairy Remain Directionless

On the Chicago Mercantile Exchange milk futures closed mixed at midweek along with cash trade as most traders remain directionless. Class III milk futures closed slightly lower in 2019 but higher 2020. July, September and October each fell a penny while August declined 5 cents. 2020 months ranged from even in February to 10 cents higher in November 2019. Class IV milk closed even in July and November and dropped as much as 9 cents in December. 2020 prices were softer as well with the 2nd quarter losing 24028 cents per cwt. 

CME spot product markets saw mixed trade.  Dry whey up $0.0025 at $0.3225. Two trades were made at $0.32 and $0.3225. Blocks down $0.01 at $1.83. Three trades were made ranging from $1.83 to $1.8325. Barrels up $0.0075 at $1.7675. Two trades were made at $1.77 and $1.78. Butter up $0.0125 at $2.4075. Two trades were made at $2.4075 and $2.41. Nonfat dry milk unchanged at $1.0375. Two trades were made at $1.0350 and $1.0375.

Grain markets on Wednesday began the day lower but reversed course and closed higher in all 3 complexes. Corn settled 2.5 cents higher on new crop to $4.395. Soybeans added 8.5 cents to $9.1275 per bu. The wheat complex added 2 cents in Chicago, Kansas City and Minneapolis.

Mixed Milk Markets Tuesday in Chicago

On the Chicago Mercantile Exchange milk futures closed mixed Tuesday with mostly lower cash trade.  This saw a fairly flat/mixed day in Class III milk. July gained 5 cents to $17.38, August and September were softer as the day traded and finished  down 3 in Aug at 17.80 and September gained 1 to 17.96. First Quarter of 2020 was mixed as well ranging from 4 cents lower to 2 cents higher and  averaged $16.73/cwt. Class IV milk gained back some of yesterday’s losses. July was unchanged at $16.91, August gained 5 to $17.14 and September gained 13 cents to finish at $17.36/cwt.

The CME spot product trade saw Butter gain a quarter of a cent to $2.39 1/2/lb with 2 trades, 7 bids and 2 offers.  Dry whey down $0.0050 at $0.32.  Two trades were made at that price.  Blocks unchanged at $1.84.  Six trades were made ranging from $1.8325 to $1.84. Barrels down $0.01 at $1.76.  Fifteen trades were made ranging from $1.76 to $1.77. Nonfat dry milk down $0.0025 at $1.0375.  One trade was made at that price. 

Grain markets had a mixed day. July corn fell 6 ¾ cent to $4.31 ¾, July Soybeans gained 7 ½ cents to $8.82 ¾ which pulled July Soybean meal $3.70 higher to $307.90/ton.  July Chicago Wheat fell 7 cents to $5.09 3/4.

Markets start the week on the decline in Chicago

On the Chicago Mercantile Exchange Milk futures closed lower Monday as grain prices recover, and cash trade turns negative.  Class III milk markets followed suit declining 5-8 cents per cwt in the 3rd and 1-3 cents in the 4th quarter. The 2nd half of the year is now offering producers $17.69 cents per cwt. First half 2020 ranged from even to 3 cents lower. Class IV milk markets were down much harder. July closed even while August dropped 8 cents, September 13 cents, and October 14 cents. November and December traded 26 and 21 cents lower, respectively, while the 1stquarter of 2020 weakened 9-14 cents.

The CME spot product market began this week in a lower fashion. Dry whey down $0.0025 at $0.3250.  Blocks down $0.0075 at $1.84.  Eleven trades were made ranging from $1.82 to $1.8450. Barrels down $0.01 at $1.77.  Eight trades were made ranging from $1.7475 to $1.76. Butter down $0.0125 at $2.3975.  Three trades were made ranging from $2.3975 to $2.4075. Nonfat dry milk unchanged at $1.04. 

Grain prices were higher in corn and beans on Monday but lower in the wheat complex. Corn added a penny while soybeans were up 3 cents. Wheat lost 4 cents in Chicago, 4 and a half cents in Kansas City and 1 cent in Minneapolis. The crop progress report was released Monday afternoon as well. Th corn crop in good to excellent condition totaled 57%, up 1% from last week while soybeans were 96% planted and had 53% of the crop rated good to excellent, down 1% from the week prior.

Milk Futures and Cash Dairy Lower Wednesday in Chicago

On the Chicago Mercantile Exchange milk futures closed lower at midweek pressured by declining world prices and limited cash trade. July milk futures down six cents at $17.31. August down eight cents at $17.82. September down seven cents at $17.91. October seven cents lower at $17.92. November through February contracts one to seven cents lower.

Dry whey down $0.0025 at $0.3275. Blocks down $0.01 at $1.85. Three trades were made ranging from $1.8425 to $1.85. Barrels unchanged at $1.78. Three trades were made at that price. Butter up $0.0050 at $2.4050. Two trades were made at that price. Nonfat dry milk down $0.0025 at $1.0450.

Global dairy prices fall for fourth consecutive trading

Dairy product prices continued to drop for fourth consecutive trading at the Global Dairy Trade (GDT) auction on Wednesday, as whole milk powder price continued to fall.

The GDT price index fell 0.4 percent from the previous auction two weeks ago. The average price was 3,302 U.S. dollars per tonne and 24,711 tonnes of products were sold, 472 tonnes more than the volume traded two weeks ago.

Whole milk powder dropped 2,969 U.S. dollars per tonne, but its price index has not changed.

“Although the index was unchanged, this was the seventh consecutive decrease in average prices since March 2019,” NZX dairy analysts Robert Gibson and Amy Castleton said in a note.

“Total offer volumes were up leading into the event, with the softer average price likely a reflection of a lift in volumes sold and reduced buyer activity out of North Asia,” they said.

At the latest GDT auction, the price declined in all commodities except skim milk powder, which saw its price increased 3.2 percent to 2,430 U.S. dollars.

Buttermilk powder had the largest retreat in price, plunging 11.9 percent to 2,500 U.S. dollars per tonne. Butter decreased 4.8 percent to 4,339 U.S. dollars per tonne, while Rennet Casein fell 3.9 percent to 7,221 U.S. dollars per tonne.

Meanwhile, cheddar slid down 1.5 percent to 3,756 U.S. dollars per tonne, while anhydrous milk fat and lactose retreated 1.9 percent and 1.1 percent to 5,433 U.S. dollars and 866 U.S. dollars per tonne respectively.

Price of sweet whey powder is not available at the latest auction.

Source: Xinhua

Fonterra announce milk price step-up

Fonterra Australia has increased its 2019/20 average milk price to $6.80/kg of milk solids and also increased its 2018/19 average price.

‘‘We are increasing our farm-gate milk price for the 2019/20 season by 20 cents per kg MS, which brings our average farm-gate milk price to $6.80/kg MS,’’ Fonterra Australia’s managing director René Dedoncker said.

‘‘You will have the option to take this step-up upfront rather than receiving it through the season.’’

The company is now in line with rival company Saputo for the 2019/20 season.

Fonterra has also increased its average price for the 2018/19 season by 10 cents to $6.15/kg MS, which is also in line with Saputo.

 

Source: Country News

Milk Markets Rise While Cash Dairy Down Tuesday in Chicago

On the Chicago Mercantile Exchange Tuesday milk futures were mostly up and cash dairy prices were mostly down, while the Global Dairy Index fell again.   July Class III milk was down $.10 at $17.37  August was unchanged at $17.90. September was up $.03 to $17.98.  October was up $.06 at $17.99. The milk futures from November through next June ranged from two to eleven cents higher.

Dry whey was unchanged at $.33 cents per pound.  No sales were recorded. Forty-pound blocks were down $.0050 at $1.86 per pound.  Eight sales were recorded from $1.8425 to $1.86. Barrels were unchanged at $1.78 per pound.  Seven sales were recorded at that price. Grade AA Butter was down $.01 at $2.40 per pound.  No sales were recorded. Nonfat dry milk was down $.0025 at $1.0475 per pound.  No sales were recorded.

Milk Markets Start Week with Big Bang in Chicago

On the Chicago Mercantile Exchange milk futures started the week with strong positive trade as lower grain prices leave traders optimistic on milk prices. July added 18 cents while August led the pack moving 31 cents higher to $17.90 per cwt. September through November grew 14-17 cents while December was up 5 cents. The second half of 2019 ended Monday with an average price of $17.70 per cwt. 2020 priced traded 5-10 cents higher as well. First half 2020 prices closed at $16.75 per cwt. average. Class IV markets traded slightly lower. September dropped 7 cents while all other months settled even to 3 cents softer. CME spot product markets had the cheddar barrel market down a penny following 2 trades at $1.78 per lb. Blocks gained three-quarters of a cent to $1.86 and a half on three loads moving from seller to buyer. 

Dry whey down $0.0050 at $0.33. One trade was made at that price. Blocks up $0.0075 at $1.8650. Three trades were made ranging from $1.8550 to $1.8650. Barrels down $0.01 at $1.78. Two trades were made at that price. Butter unchanged at $2.41. Nonfat dry milk unchanged at $1.05.

Milk Futures Up Cash Dairy Mixed in Chicago Thursday

On the Chicago Mercantile Exchange Thursday milk futures were mostly up and cash dairy prices were mixed. Class III milk futures markets were mainly higher on Thursday. June lost 5 cents while July added 10 cents and August through December ranged from a penny lower to four higher. Class IV markets were higher as August through December jumped 10-12 cents while 2020 added 6-10 cents in the first half of the year. 

Dry whey was down $.0125 at $.3425 cents per pound. Four sales were recorded from $.3425 to $.3500. Forty-pound blocks were down $.0050 at $1.8375 per pound. Eight sales were recorded from $1.82 to $1.84. Barrels were up $.0450 to $1.7650 per pound. Eight sales were recorded from $1.72 and $1.76. Grade AA Butter was down $.01 at $2.41 per pound. Twenty-three sales were recorded between $2.3850 and $2.42. Nonfat dry milk was up $.0050 at $1.05 per pound. No sales were recorded.

Grain prices were softer in corn and soybeans ahead of the USDA’s much anticipated planted acreage and quarterly grain stocks reports that will be released Friday at 11 a.m. central. Corn declined 3.5 cents in the new crop price to $4.51 while soybeans dropped 6 cents to $9.1225 per bu. The wheat complex traded a quarter cent higher in Chicago, a half cent lower in Kansas City and 2 cents stronger in Minneapolis.

Dairy Markets Mixed in Chicago Wednesday

On the Chicago Mercantile Exchange milk futures were mixed at midweek with a mostly inactive cash trade.  Class III milk had a mixed day. June gained a penny to $16.32, July gained 4 to $17.08/cwt and the second half months varied from down a penny to 4 higher. The average finishing the day at $17.42. January- March of 2020 saw small gains of 1-3 cents and average in at $16.63/cwt. Class IV milk saw more movement in fall months. Nearby was unchanged with June at $16.86 and July at $17.06/cwt. Second half average came in at $17.42/cwt.

We saw a CME spot product trade on Wednesday without many fireworks.  Dry whey unchanged at $0.3550. Blocks down $0.0025 at $1.8425. One trade was made at that price. Barrels unchanged at $1.72. Two trades were made at that price. Butter up $0.0025 at $2.42. Eight trades were made ranging from $2.42. to $2.43. Nonfat dry milk up $0.01 at $1.0450. One trade was made at that price.

Grain markets were softer. July Corn fell 4 ¼ to $4.43 ¼, July soybeans lost 9 ¼ to $8.94 ¼ and July soybean meal was down $2.30 to $313.40/ton. The grain and feed trades will keep a close eye on the planted acres report being released Friday by the USDA.

Cropp predicts that milk prices could see $4 jump before end of the year

University of Wisconsin’s Bob Cropp says the last week of USDA reports confirms that farmers are keeping herd sizes low to improve prices.

“With production like this, I think $18 milk is surely there” state Cropp. 

 Other countries are also experiencing low milk production because of drought which is good for world prices.

“With U.S. milk production growth under one percent, you have to look at stronger prices worldwide.”  

He says less production is also leading to reduced dairy products in cold storage compared to a year ago.

“The cheese markets in just the last week or so has had quite a rebound-both for barrels and blocks.”

Butter and powder prices have also been improving which Cropp says is spilling over into the futures market.  Class III prices were less than $14 per hundredweight in January.

 

Milk Markets Mixed Bag Tuesday in Chicago

On the Chicago Mercantile Exchange milk futures were mixed Tuesday following the direction of cash trade. Class III markets ranged from 5 cents lower to 6 cents higher. The second half of 2019 settled with an average price of $17.40 per cwt. 2020 markets declined 2-13 cents per cwt. Class IV markets for 2019 ranged from 6 lower to 8 higher. The 2nd half for Class IV closed at $17.34 per cwt. 

CME spot product markets watched butter add 1.5 cents to finish at $2.4175 per lb.  Barrels unchanged at $1.72. Six trades were made ranging from 1.7175 to $1.72.  Blocks up $0.0050 at $1.8250. One trade was made at that price. Dry whey up $0.0025 at $0.3550. Seven trades were made ranging from $0.3550 to $0.3575. Nonfat dry milk down $0.0050 at $1.0350. Five trades were made ranging from $1.0325 to $1.0375.

Grain markets watched choppy trade all day Tuesday following USDA’s crop progress report on Monday afternoon. Corn gapped higher overnight and traded as high as $4.53 on the July contract but closed a penny off the lows at $4.475 per bu. Corn had 96% planted with 56% of the crop rated good-to-excellent, down 2% from the previous week. Soybeans were 85% planted with 54% of the crop rated good-to-excellent. Soybeans lost 6 cents on the day and were 15 cents off the highs.

Milk Markets Continue Last Weeks Steady Climb in Chicago Monday

On the Chicago Mercantile Exchange Monday milk futures were mostly up and cash dairy prices were mixed.  Class III milk was flat in nearby months but continued a steady climb for late 2019. June and July were unchanged at $16.30 and $17.08/cwt, but August gained 9 cents to $17.44 as did September to finish at $17.64/cwt. October- December gained 1-4 cents and they average $17.41/cwt. January – March of 2020 gained 3-4 cents to $16.63/cwt. Class IV milk was also unchanged for June and July, finished at $16.86 in June and $17.10 for July. Second half average for Class IV milk is at $17.36/cwt.

The CME spot product trade showed some gains on limited volumes.  Dry whey was up $.01 at $.3525 cents per pound. Two sales were recorded at $.3425 and $.3575. Forty-pound blocks were up $.0150 at $1.84 per pound. Ten sales were recorded from $1.8250 to $1.8425. Barrels were down $.0175 to $1.72 per pound. Two sales were recorded at $1.71 and $1.7375. Grade AA Butter was up $.0125 at $2.4025 per pound. Three sales were recorded at $2.38 and $2.4025. Nonfat dry milk was down $.0050 at $1.04 per pound. One sale was recorded at that price.

Grain and feed prices rebounded Monday after some softening at the end of last week. July corn gained 4 ½ cents to $4.46 ¾, July Soybeans gained 6 ¼ cents to $9.09 even, and July soybean meal gained $2 to $317.60/ton.

Strong global fundamentals back $7.15 farm-gate price

Rabobank is holding its farm-gate milk price forecast of $7.15 for the 2019-20 season amid strong global market fundamentals.

In its latest quarterly global dairy report, the bank said those fundamentals had remained well-balanced through the first half of 2019, with stagnant milk supply growth, reduced stocks and price stability continuing to be the key themes permeating across the sector.

Milk production across the “big seven” exporters – the EU, United States, New Zealand, Australia, Uruguay, Argentina and Brazil – in 2019 was below the prior year, allowing markets to find support.

A sharp finish to the milk production seasons in both New Zealand and Australia, coupled with robust China imports, supported Oceania-origin dairy product prices, Rabobank dairy analyst Emma Higgins said.

The outlook through the second half of 2019 pointed to an ongoing challenge to “turn the milk production tap on” across key exporting regions.

“Milk production across the export engine has stuttered along in the first half of 2019 with negative growth of 0.3% and this has created tension in the global market.

“However, the milk supply tap is slowly being turned on, and in quarter three we expect to see the return of milk supply growth for the big seven exporters, with this led by the northern hemisphere producers.”

Importantly for New Zealand producers, the bank’s forecast suggested less milk volumes would be available from the southern hemisphere export countries over the second half of 2019.

On the demand side, the report said the landscape in import markets remained a “mixed bag”.

Chinese import appetite was stronger than expected through the first four months of 2019 and some buyers were likely to have adequate coverage.

Chinese demand was expected to remain firm but lower than in the first half of 2019 which might “place a ceiling” on price increases, Ms Higgins said.

The US economy was heading for a sizeable slowdown in 2020 while the Eurozone economy had been underperforming since 2018, she said.

Trade tensions and the worsening African swine fever outbreak shaped as key watch factors in the second half of 2019, the report said.

 

Source: Otago Daily Times

Dairy Australia Situation and Outlook June 2019

As farmers prepare for the season ahead, the Situation and Outlook report ensures farmers and the industry have access to current market insights and future projections to inform farm business decisions.

High costs have pressured Australian dairy farmers, resulting in lower milk production and low farmer confidence. Well-balanced global markets, exchange rates, competition among processors and autumn rainfall are all in dairy farmers’ favour. As dairy farmers look to take advantage of some of the highest farm-gate prices in recent years, grain, hay and water prices will be the key to profit.

Access episode six of Dairy Australia’s podcast to hear Dairy Australia Trade and Strategy group manager Charlie McElhone discuss key insights from the report with senior analyst John Droppert.

 
 

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