Milk production during January increased in Wisconsin by 3.4 percent and by 2 percent for the nation as a whole compared to January of 2014, according to the monthly update issued late last week by the National Agricultural Statistics Service.
The Wisconsin total of 2.397 billion pounds for the month was 34 million pounds more than in December (the last month with 31 days) and 79 million pounds more in January of 2014. The percentage of increase for this January is relatively high because the January 2014 production was a decrease of 57 million pounds from January of 2013. The 22-million pound increase in the state from January 2013 to January 2015 was less than 1 percent.
An average increase of 55 pounds of milk per cow to 1,880 pounds in the January 2014 to January 2015 comparisons also boosted the percentage gain. Both the milk production total and average milk per cow were record highs for a January in Wisconsin.
The dairy cow count of 1.275 million in Wisconsin for January was an increase of 5,000 head from a year ago. According to another report, those cows were on a average of 10,290 licensed dairy farms in the state during 2014 — a decline of 570 from 2013 and of 5,280 from 2004.
During January, several of the lowest production states among the top 23 posted the highest percentage increases compared to a year ago while several of the top production states did not match the 2-percent increase for the nation as a whole for the month.
Those increases included 8.7 percent in South Dakota, 6.9 in Utah, 6.2 in both Colorado and Indiana, 5.1 in Kansas, and 4.9 in Iowa. Other major production increases were Michigan’s 9.6 percent to 854 million pounds for January, 4.4 percent to 895 million pounds in Texas, and 4.4 percent to 474 million pounds in Ohio.
With a 2.6-percent cutback to 3.531 billion pounds, California exerted a downward pull on the national increase for January. New Mexico’s production was down by 1.9 percent to 669 million pounds.
In the January comparisons, cow numbers in the top 23 states were up 103,000 head to a total of 8.619 million. Average milk production per cow for the month was up by 17 pounds to 1,918 pounds.
Another report indicated there were an average of 45,344 dairy farms in the United States licensed to ship milk to the commercial market during 2014. This was a decrease of 1,631 such herds from 2013 and of 21,481 since 2004. That report also noted that dairy cow numbers in 2014 were up by 45,000 from 2004 and by 54,000 from 2009.
Dairy commodity trading in the spot market on the Chicago Mercantile Exchange (CME) was fairly active early this week before slowing on Wednesday except for Grade A non-fat dry milk. Seven carloads of it were traded on Wednesday, bringing the week’s total to 14. Even with a price gain of 1.75 cents on Wednesday, the day’s closing price of $1.10 per pound was 10 cents below that of a week earlier.
The same price pattern held for AA butter. After 13 carloads were sold earlier in the week, there was no activity on Wednesday. The standing spot market price of $1.6425 per pound was down by 7.75 cents from a week earlier.
In the Cheddar cheese spot market, prices have changed very little in the past two weeks. On Wednesday of this week, Cheddar blocks held at $1.5450 per pound as one carload was sold to put the week’s total at 7.
With no activity, the Cheddar barrel price remained at $1.4825 per pound on Wednesday. Three carloads were sold earlier in the week.
The CME prices did not respond to the rises in the latest Global Dairy Trade auction which was held last week in Auckland, New Zealand. Among the 7 commodities in the auction, Cheddar cheese prices jumped by 16.8 percent, whole milk powder by 13.7 percent, and skim milk powder by 5.7 percent compared to the previous auction held two weeks earlier. Overall prices were up by an average of 10.1 percent.
After setbacks for nearby months late last week, the Class III milk futures market had minimal price changes on Wednesday of this week. In one of its final trading days, the February price stood at $15.50 per hundred, followed by $15.38 for March, $15.26 for April, and $15.61 for May before beginning a gradual rise to $16.37 for June and $17.02 for July.
The prices then stabilize in the $17s per hundred through the remainder of 2015. They then drop back to the mid-$16s for all of 2016.
Dry whey futures were closing at 52 cents per pound for February and then slipping to 48.5 cents for March and 45 cents for April. Following a recovery from earlier lows, they are now above 40 cents per pound all months from May 2015 through December of 2016.
The Class I fluid milk national base price for March is $15.56 per hundred. This is a decrease of 68 cents from the February price and $8.08 per hundred from the March 2015 Class I base price.
On Monday of this week, Cooperatives Working Together announced the receipt of 11 bids from Bongard’s Creamery of Minnesota, Dairy Farmers of America, the Northwest Dairy Association of Washington, and Tillamook Country Creamery of Oregon for financial assistance on the export of 2.59 million pounds of Cheddar, Gouda, and Monterey Jack cheese. Deliveries are scheduled to countries in Asia, Central America, North Africa, and the Middle East through August.
By Ray Mueller
Source: Wisconsin State Farmer
