Class III milk futures at the Chicago Mercantile Exchange were lower on demand concerns and another round of follow through selling. August was $.02 lower at $16.51, September was down $.05 at $16.67, October was $.10 lower at $16.53, and November was down $.11 at $16.48.
Read more: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were mostly lower, with the most active months down on demand concerns and follow through selling. August was up $.01 at $16.53, while September was down $.20 at $16.72, October was $.16 lower at $16.63, and November was down $.09 at $16.59.
Read more: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were mostly lower on spread trade, follow through selling, and demand uncertainties. August was up $.02 at $16.53, most active September was down $.06 at $17.13, October was $.11 lower at $17.00, and November was down $.08 at $16.90.
Read more: Brownfield Ag News
Further increases in milk prices could be on the cards as global dairy markets remain strong.
Local industry sources conceded that prices for July supplies are likely to harden further on the back of continuing buoyant international demand.
“Right now there is nothing out there that will radically change matters, so we are looking towards a further improvement in milk prices,” one processor source said.
Although the GDT index fell back 1.6pc last week, the overall tone of international dairy markets remains positive.
Industry analysts point out that milk supply and demand remain in balance, with output in Europe remain static, while supply growth in the US and New Zealand is being absorbed by increased American domestic demand and heightened Chinese buyer activity respectively.
Meanwhile, ICMSA has urged dairies to close the gap that exists between Irish milk processors and their European counterparts.
While most Irish processors are working off of a base of 33-34c/l, Gerald Quain of ICMSA pointed out that Ireland lagged behind the EU average milk price by 1.6c/kg.
The ICMSA representative said there was no justification for the price gap and he rejected what he described as the “carefully cultivated notion” that the lag between Irish and European prices had been closed.
“The Irish milk price is still in 14th place at EU level, a position which – when you consider our investments at processing level and our grass-based natural system of milk production – is very disappointing,” Mr Quain said.
“As of May, the EU average was still 1.6c/kg above our figure. That difference translates to almost €5,000 over a year for a 300,000-litre dairy farmer,” he pointed out.
Source: Independent
Class III milk futures at the Chicago Mercantile Exchange were mixed, with the most active months up on technical buying and spread trade. August was $.02 higher at $16.47, September was up $.21 at $17.05, October was $.10 higher at $17.08, and November was up $.08 at $17.01.
Read more: Brownfield Ag News
On July 27, Fonterra announced to the New Zealand farmers a forecast Farmgate Milk Price for the 2017/2018 season increased by 0.25 New Zealand Dollars, to NZD 6.75 per kilogram of milksolids (kgMS) or about 4.17 €/kgMS. Converted into milk, the price increased roughly from 29.7 to 30.9 €/100kg of milk 4.0% fat and 3.4% protein mass/mass (ref. Germany, current change of reference: 1NZD = 0.618€).
On July 28 the co-operative lifted the milk price for its Australian suppliers by 0.20 Australian Dollars, pushing the average amount paid to AUD 5.50/kgMS. Some agricultural lenders expect the higher income will result in reduction of existing debt, as well as further producer investment into their farms.
The new dairy season in New Zealand started in June with a milk production 21.09% higher than June last year. However, this percentage may be misleading, because June is usually the month with the lowest production in the year.
Class III milk futures at the Chicago Mercantile Exchange were mostly lower, with the most active months down on spread trade and follow through selling. August was down $.08 at $16.25, September was $.06 lower at $16.63, October was down $.05 at $16.87, and November was $.03 lower at $16.95.
Read More: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were supported by another round of positive technical momentum, along with increased demand expectations. August was $.14 higher at $16.73, September was up $.17 at $17.48, October was $.19 higher at $17.53, and November was up $.09 at $17.43.
Read more: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were supported by follow through buying, along with at least some improvement in demand expectations. August was $.03 higher at $16.59, September was up $.15 at $17.31, October was $.08 higher at $17.34, and November was up $.07 at $17.34.
Read more: Brownfield Ag News
New Zealand dairy cooperative Fonterra has welcomed growing confidence in the dairy industry, which prompted a NZD 0.25 ($0.19) increase in its milk price forecast.
The company increased its forecast farm-gate milk price for the 2018 season from NZD 6.50 ($4.89) per kilogram of milk solids to NZD 6.75 ($5.08).
Fonterra chairman John Wilson said the increase reflected ‘growing confidence on-farm’ across New Zealand, with global demand for dairy strengthening. “The signs [suggest] a good start to the season for our farmers and their rural communities, although [it follows] a challenging period of very wet conditions for some of our farmers,” Wilson said.
“The increased farm-gate milk price will be welcome news to farmers as they continue to invest in their businesses off the back of an improved 2016/2017 season, with the usual reminder to budget cautiously especially in the early part of the season.”
Fonterra chief executive Theo Spierings says the cooperative is well positioned to take advantage of improving demand for dairy nutrition across the ingredients, consumer and foodservice markets.
“Increasing numbers of consumers in our global markets prefer dairy for their everyday source of nutrition, and that is converting into strong demand – particularly in consumer and foodservice products.
“Our forecasts are prudent, given that we are still early in the season and we are starting with very low levels of inventory, and we are focused on continuing to demonstrate strong business performance so as to bring greater returns for our farmers.”
The comments will be a welcome vote of confidence, with the global dairy industry otherwise struggling amid falling demand from consumers.
The move away from dairy products has been motivated by the rise in popularity, and availability, of alternative milks like almond milk and coconut milk. Many shoppers are avoiding dairy as a lifestyle choice: recent research from the UK’s Food Standards Agency found that almost a fifth of 16 to 24-year-olds claimed to be intolerant to cow’s milk and dairy products, despite less than a quarter of those having had their intolerance diagnosed by a doctor.
In April, a charity warned consumers against cutting dairy out of their diet altogether, saying it could have a detrimental effect on bone health in later life.
A survey from the National Osteoporosis Society found that nearly a fifth of consumers aged under 25 had sought to reduce the amount of dairy in their diets, leaving consumers more vulnerable to breaks and fractures.
Source: FoodBev Media
Class III milk futures at the Chicago Mercantile Exchange were supported by an oversold bounce. Also, while cheese stocks in cold storage were up, the monthly out movement was larger than average, implying good demand. August was up $.30 at $16.31, September was $.34 higher at $16.73, October was up $.26 at $16.97, and November was $.18 higher at $17.00.
Read more: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were down on follow through selling and position squaring ahead of the USDA’s monthly milk production report. August was $.25 lower at $16.30, September was down $.19 at $16.63, October was $.17 lower at $16.81, and November was down $.09 at $16.90.
Read more: Brownfield Ag News
Global dairy prices inched up at auction, rebounding slightly from a fall at a similar sale earlier in the month, according to Global Trade Events which holds the fortnightly auction.
The Global Dairy Trade (GDT) Price Index edged up 0.2 percent, with an average selling price in the auction of $3,387 per ton.
The index had slipped 0.4 percent at the previous sale, moderating after a strong run earlier in the year.
After two years of declining prices, farmers and analysts had been concerned that a 50 percent rebound during 2016 could be temporary, but prices got back on track in recent months as global supply tightened.
“Dairy prices were largely unchanged overnight,” ASB said in a research note. “Butter prices set a fresh record high … this is the tenth time that butter has set a new record high this year.”
Gains were led by butter, which jumped 3.4 percent, while whole milk powder, the key export for New Zealand was up 0.3 percent.
That was offset by a 3.2 percent fall in skim milk powder and a 1.8 percent decline in lactose.
The auction results can affect the New Zealand dollar as the dairy sector generates more than 7 percent of the country’s gross domestic product.
The New Zealand dollar, however, was little changed on the day at $0.7345.
GDT Events is owned by New Zealand’s Fonterra Co-operative Group Ltd, the world’s largest exporter of dairy, but operates independently from the company.
U.S.-listed CRA International Inc is the trading manager for the twice-monthly Global Dairy Trade auction.
A total of 26,688 tons was sold at the latest auction, falling 6.6 percent from the previous one. The auctions are held twice a month, with the next one scheduled for Aug. 1.
Source: Reuters
Class III milk futures at the Chicago Mercantile Exchange were pressured by technical selling. August was $.10 lower at $16.55, September was down $.09 at $16.82, October was $.12 lower at $16.98, and November was down $.09 at $16.99. Cash cheese blocks were unchanged at $1.71. Two loads were sold at $1.71. The last uncovered offer was for one load at $1.72. Barrels were steady at $1.485. 12 loads were sold, three at $1.485 and nine at $1.4825. The last uncovered offer was for one load at $1.4875.
Read more: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were mostly lower on profit taking and spread trade. August was down $.02 at $16.65, September was $.08 lower at $16.91, October was down $.05 at $17.10, and November was up $.01 at $17.08.
Cash cheese blocks were up $.015 at $1.71. Three loads were sold, including one at $1.71. The last unfilled bid was on one load at $1.7025. The last uncovered offer was for one load at $1.71. Barrels were unchanged at $1.485. 10 loads were sold, three at $1.485 and seven at $1.4825. The last unfilled bid was on one load at $1.44. The last uncovered offer was for one load at $1.485.
Butter was $.03 higher at $2.645. Three loads were sold, one each at $2.6475, $2.65, and $2.6425. The last unfilled bid was on two loads at $2.645. The last uncovered offer was for two loads at $2.65.
Nonfat dry milk was steady at $.8525. Four loads were sold, two at $.8525 and two at $.86. The last unfilled bid was on seven loads at $.8525.
The Global Dairy Trade auction index was 0.2% higher at $3,387 per ton. Butter gained 3.4% and rennet casein was up 2.4%, while skim milk powder was 3.2% lower and lactose was down 1.8%. Butter milk powder was not offered. HighGround Dairy calls the numbers bullish for butter and cheddar, bearish for lactose, and neutral for the other categories. The next event is scheduled for Tuesday, August 1st.
Source: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were mixed, with the most active months up on technical buying and spread trade. August was $.02 higher at $16.67, September was up $.01 at $16.99, October was $.05 higher at $17.15, and November was $.02 at $17.07.
Read more: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were mostly lower on spread trade and follow through selling. July was down $.04 at $15.59, August was up $.05 at $16.55, September was $.03 higher at $16.94, and October was $.02 lower at $17.09.
Cash cheese blocks were up $.02 at $1.65. Four loads were sold, including three at $1.65 and one at $1.6425. The last unfilled bid was on one load at $1.645. The last uncovered offer was for one load at $1.665. Barrels were $.0125 higher at $1.45. One load was sold at $1.45. The last uncovered offer was for three loads, all at $1.45.
Butter was unchanged at $2.585. A total of 16 loads were sold, including three at $2.585. The last unfilled bid was on one load at $2.5825. The last uncovered offer was for four loads at $2.60.
Nonfat dry milk was $.0025 lower at $.8675. Eight loads were sold, including six at $.8675. The last unfilled bid was on two loads at $.86. The last uncovered offer was for one load at $.90.
The USDA has lowered its 2017 U.S. milk production outlook to 216.3 billion pounds, because of slower than expected growth in the per cow production average. The 2017 all milk price was lowered, the current range is $17.65 to $17.95 per hundred weight, with Class III down on projected lower cheese prices and Class IV up on anticipated strong butter demand, which is expected to support cash butter prices. Class III milk prices are seen at $15.85 to $16.15 and Class IV is expected to be between $15.65 to $16.05. Cheese prices currently range from $1.575 to $1.605 per pound and butter is estimated at $2.365 to $2.425. Nonfat dry milk is pegged at $.90 to $.93, $.005 tighter on each end, and dry whey is placed at $.475 to $.495, down $.015.
Source: Brownfield Ag News
The 2017 and 2018 milk production forecasts are lowered from last month. Growth in milk per cow has been slower than expected, and the forecast growth rate is reduced.
Fat basis import forecasts for 2017 and 2018 are unchanged from the previous month. Fat-basis export forecasts for 2017 and 2018 are raised on continued robust exports of cheese.
On a skim-solids basis, imports for 2017 were reduced from the previous month on lower expected purchases of milk protein concentrates (MPC), but the 2018 import forecast remains unchanged. The 2018 skim solids import forecast remains unchanged. Skim-solid exports for 2017 and 2018 are raised as nonfat dry milk (NDM) and cheese shipments are expected to remain strong.
For 2017, cheese and whey price forecasts are reduced from the previous month, while butter prices are forecast higher. The NDM price forecast is unchanged but the range is narrowed. Cheese prices for 2018 are reduced while butter prices are raised on continued strong demand. NDM and whey price forecasts for 2018 are unchanged from last month.
The 2017 and 2018 Class III price forecasts are lowered from last month in line with lower component product prices. The Class IV price forecasts are increased for 2017 and 2018 reflecting higher butter prices. The 2017 all milk price is forecast at $17.65 to $17.95 and the price for 2018 is $18.00 to $19.00 per cwt.
Source: U.S. Department of Agriculture
Class III milk futures at the Chicago Mercantile Exchange were down on profit taking after a couple of days of gains. July was $.02 lower at $15.63, August was down $.07 at $16.50, September was $.08 lower at $16.91, and October was down $.10 at $17.11.
Cash cheese blocks were up $.015 cents at $1.63. Two loads were sold, one at $1.63 and one at $1.62. Barrels were $.02 higher at $1.4375. 16 loads were sold, including eight at $1.4375. The last unfilled bid was on one load at $1.415. The last uncovered offer was for two loads at $1.4425.
Butter was $.0225 lower at $2.585. 21 loads were sold, including one at $2.585, seven at $2.605, and eight at $2.60. The last unfilled bid was on one load at $2.575. The last uncovered offer was for two loads at $2.59.
Nonfat dry milk was down $.0025 at $.87. 10 loads were sold, including five at $.87 and four at $.8725. The last unfilled bid was on one load at $.8675. The last uncovered offer was for one load at $.90.
The USDA says cash butter for the week ending July 8th averaged $2.65 per pound, up $.081 on the week. 40 pound blocks of cheddar came out at $1.61, down $.029. 500 pound barrels averaged $1.42, $.017 lower. Dry whey was pegged at $.458, down $.018. Nonfat dry milk averaged $.902, $.016 lower.
HighGround Dairy reports milk production in the United Kingdom for the week ending July 1st was up 1.4% on the year, while production in France for the week ending July 2nd was down 4.0%.
Source: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were down on follow through selling and demand concerns. July was $.03 lower at $15.55, August was down $.24 at $16.24, September was $.22 lower at $16.54, and October was down $.20 at $16.80.
Cash cheese blocks were $.0025 higher at $1.555. Three loads were sold, including one at $1.555. The last unfilled bid was on two loads at $1.555. The last uncovered offer was for one load at $1.5575. Barrels were up $.01 at $1.385. Eight loads were sold, including one at $1.385 and six and $1.3825. The last uncovered offer was for two loads at $1.385.
Butter was $.03 higher at $2.615. Eight loads were sold, including three at $2.615 and three at $2.6125. The last unfilled bid was on one load at $2.6075s. The last uncovered offer was for one load $2.615.
Nonfat dry milk was up $.005 at $.8725. Two loads were sold, one at $.8725 and one at $.87. The last unfilled bid was on two loads at $.87. The last uncovered offer was for one load at $.8725.
Source: Brownfield Ag News
Global dairy prices dipped slightly at the Global Dairy Trade Auction on Tuesday night.
The GDT price index was down 0.4 per cent.
But the overall result disguised mixed results for different categories.
The key Whole Milk Powder index rose 2.6 per cent and the Butter Milk Powder index rose 10.8 per cent, but other indexes were all down.
The biggest fall was in the skim milk powder index – down 4.5 per cent.
The 0.4 per cent dip meant prices have fallen at consecutive auctions after six consecutive rises.
Prices fell 0.8 per cent at the previous auction two weeks ago.
Butter prices slipped 0.1 per cent but over the past year they have doubled.
New Zealand ASB economist Nathan Penny put the high levels down to a change in sentiment.
“Much of this surge in milk fat prices can be put down to an acknowledgement by the scientific community that fats are no longer as bad for your health as once feared,” he wrote in the ASB’s latest Farmshed Economics.
“In particular, this notion has been embraced in North America. In short, butter is back!”
While the global dairy market outlook remained firm, Mr Penny expected prices to fluctuate around current levels over coming months.
“So far, this calm bodes well for our 2017-18 milk price forecast (for NZ) of $NZ6.75 a kilogram milk solids.”
Production rates in Europe declined 1.6 per cent during the first four months of 2017. New Zealand output is expected to increase during the next 12 months.
AgriHQ said prices for nearer-dated WMP contracts lifted more than prices for later dated ones, suggesting some buyers needed WMP more urgently than others.
Large stocks of SMP still available from Europe were responsible for bringing prices of that product down.
Buyers from North Asia and from the Middle East bought more product than they did at the June 20 event.
A total of 28,574 metric tonnes of product was sold. There were 165 participating bidders, with an average price of US$3303 per tonne.
Source: The Australian Dairy Farmer
Class III milk futures at the Chicago Mercantile Exchange were up on follow through buying and expectations for lower intakes as temperatures rise. July was $.04 higher at $15.72, August was up $.14 at $16.66, September was $.14 higher at $16.88, and October was up $.16 at $17.11.
Cash cheese blocks were $.015 higher at $1.555. One load was sold at $1.5525. The last unfilled bid was on three loads at $1.555. The last uncovered offer was for one load at $1.58. Barrels were $.0025 lower at $1.3675. Nine loads were sold, including two at $1.3675. The last unfilled bid was on five loads at $1.36. The last uncovered offer was for one load at $1.37.
Butter was down $.0725 at $2.5725. 15 loads were sold, including one at $2.5725. The last unfilled bid was on two loads at $2.5525. The last uncovered offer was for one load at $2.5725.
Nonfat dry milk was up $.0125 at $.8625. One load was sold at $.86. The last unfilled bid was on one load at $.8625. The last uncovered offer was for one load at $.87.
The USDA reports cash butter for the week ending July 1st averaged $2.56 per pound, up $.005 on the week. 40 pound blocks of cheddar came out at $1.64, down $.05. 500 pound barrels averaged $1.44, $.054 lower. Dry whey was pegged at $.473, down $.004. Nonfat dry milk averaged $.917, $.005 lower.
HighGround Dairy reports milk production in the United Kingdom for the week ending June 24th was down 0.1% on the year, while production in France for the week ending June 25% dropped 3.3%, with HighGround citing hot temperatures, which have also damaged France’s soft wheat and corn crops.
Source: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were up on an oversold bounce. July was $.01 higher at $15.68, August was up $.05 at $16.52, September was $.07 higher at $16.74, and October was up $.04 at $16.95.
Cash cheese blocks were a $.015 higher at $1.54. Three loads were sold, including at one at $1.54. The last unfilled bid was on one load at $1.53. The last uncovered offer was for one load at $1.60. Barrels were up $.0175 at $1.37. Six loads were sold, including two at $1.37. The last unfilled bid was on one load, also at $1.37. The last uncovered offer was for one load at $1.3725.
Butter was unchanged at $2.645. Seven loads were sold, including four at $2.645. The last unfilled bid was on one load at $2.6275. The last uncovered offer was for one load at $2.65.
Nonfat dry milk was $.01 higher at $.85. Two loads were sold at $.85. The last unfilled bid was on one load, also at $.85. The last uncovered offer was for one load at $.88.
For the second event in a row, the Global Dairy Trade auction index was modestly lower, down 0.4% at an average of $3,303 per ton. Skim milk powder was 4.5% lower and anhydrous milk fat was down 3.5%, while whole milk powder was 2.6% higher and butter milk powder jumped 10.8%. The next event is scheduled for Tuesday, July 18th.
Source: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were mostly lower in fairly thin trade, consolidating ahead of the July 4th break. July was down $.05 at $15.67, August was $.11 lower at $16.47, September was down $.06 at $16.67, and October was down $.02 at $16.91.
Cash cheese blocks were unchanged at $1.525. One load was sold $1.525. The last uncovered offer was for one load at $1.53. Barrels were steady at $1.3525. The last unfilled bid was on two loads at $1.33. The last uncovered offer was for two loads at $1.3525.
Butter was up $.0025 at $2.645. One load was sold at $2.645. The last uncovered offer was for one load at $2.65.
Nonfat dry milk was down $.005 at $.84. 13 loads were sold, including three at $.84, nine at $.845, and one at $.8375. The last unfilled bid was on one load at $.84. The last uncovered offer was for two loads at $.86.
The next Global Dairy Trade event is scheduled for Tuesday, July 4th at 8 AM Eastern/7 AM Central. U.S. markets are closed for Independence Day, with futures and options trade set to reopen at 6 PM Eastern/5 PM Central Tuesday evening.
Source: Brownfield Ag News
Cash cheese prices slipped last week but the spread narrowed a little. The blocks closed Friday at $1.54 per pound, down 7 1/2-cents on the week and the fourth week in a row of decline, but were still 2 3/4-cents above a year ago.
History was made Monday as the cheese moved to the electronic spot call at the CME. The blocks lost a penny and a half but were unchanged Tuesday, holding at $1.5250, the lowest spot price since May 4, 2017.
The barrels rolled to $1.3375 last Tuesday, the lowest price since May 16, 2016, but rallied and finished Friday at $1.37, down just a penny on the week and 16 1/2-cents below a year ago.
Thirteen cars of block traded hands last week at the CME and a whopping 63 of barrel. The last time barrel volume was over 60 loads was in September 2000, according to FC Stone.
The barrels inched a quarter-cent lower Monday and stayed there Tuesday, at $1.3675, a still too-high 15 3/4-cents below the blocks.
More milk will be shifting from the carton to the cheese vat as schools close for the summer but temperatures may, pardon the pun, temper milk output per cow.
Milk continues to be available for cheese producers in the Midwest, according to Dairy Market News.
“However, cheesemakers report the flush milk availability of previous weeks has noticeably decreased,” DMN says. Cheese production has edged back. Some producers are trying to manage heavy inventories, and “some contacts suggest export sales, which are scheduled for future shipment dates, have not been accounted for, thus cheese inventories are not as heavy as widely believed.”
Central cheese producers report varied sales activity but the large block-to-barrel price variance “is at loggerheads with a stable market, according to Central cheese contacts,” says DMN.
Western cheesemakers report continued strong production as milk supplies are readily available. Contacts describe demand as good, but not great. Export inquiries seem to vacillate along with the variance between current U.S. market prices and international prices. Inventories are long.
Cash butter continued to roller coaster last week but closed 3 cents higher, at $2.59 per pound, 24 1/2-cents above a year ago, with 17 cars sold last week.
The spot was up 3 1/2-cents Monday and inched a quarter-cent higher Tuesday, to $2.6250.
“Butter’s performance, in retail and food service, is outperforming previous years,” says DMN, “and continues to keep production facilities busy.” Butter makers are reportedly “attempting to focus production on late summer-early fall expectations, whenever not fulfilling current orders,” but cream supplies are tightening.
The butter market tone is healthy, and some contacts are bullish for the near term. Contacts suggest that “global milkfat demand continues to bolster domestic butter prices.”
“Demand for butterfat continues to be a primary driving force within the dairy industry, and Western butter output is also strong and focused mostly on putting away bulk butter for needs later in the year.
Inventories are “fairly heavy,” but contacts suggest that stocks are “either committed or manufacturers are willing to hold butter supplies until peak butter demand season in the fall and early winter.”
Cash Grade A nonfat dry milk finished Friday at 84 3/4-cents per pound, down 6 1/4-cents on the week and 5 1/4-cents below a year ago, on 11 cars sold.
The powder was down a quarter-cent both Monday and Tuesday, slipping to 84 1/4-cents per pound.
FC Stone reports that the EU Commission sold 100 tons of skim milk powder out of Intervention in their latest tender. That, plus slower exports to Mexico and expected increases in global milk output contributed to the weaker CME price.
Federal Class I up
The July federal order Class I base milk price is $16.59 per hundredweight, up $1.28 from June, $2.89 above July 2016, and equates to $1.43 per gallon, up from $1.32 in May and $1.18 a year ago. It is the highest Class I base since March 2017 and the highest July Class I since 2014.
The 2017 average now stands at $16.32, up from $13.96 at this time a year ago and compares to $16.34 in 2015.
Cows retiring
More dairy cows are retiring from the dairy business. USDA’s latest Livestock Slaughter report shows May culling was up from April and 2016. An estimated 237,200 head were slaughtered under federal inspection, up 9,100 head from April and 22,600 head above May 2016. Culling in the first five months of 2017 totaled 1.26 million head, up 33,000 from a year ago or 2.7 percent.
Lots of stocks
The nation’s coolers are busting at the seams, at least on cheese. May butter stocks hit 313.6 million pounds, up 21.3 million pounds or 7.3 percent from April but 11.4 million pounds or 3.5 percent below a year ago.
American cheese, at 847 million pounds, was up 13.5 million pounds or 1.6 percent from April and 89.5 million pounds or 11.8 percent above a year ago.
The total cheese inventory stood at a record 1.34 billion pounds, up 7.6 million pounds or 0.6 percent from April and 91 million pounds or 7 percent above a year ago.
Source: Capital Press
Class III milk futures at the Chicago Mercantile Exchange were down on follow through selling and supply pressure. July was $.06 lower at $15.82, August was down $.07 at $16.60, September was $.09 lower at $16.78, and October was down $.10 at $16.97.
Cash cheese blocks were $.015 lower at $1.51. 10 loads were sold, nine at $1.505 and one at $1.51. The last uncovered offer was for one load at $1.52. Barrels were $.0025 higher at $1.37. 15 loads were sold, 10 at $1.3675 and two at $1.37. The last unfilled bid was on one load at $1.3675. The last uncovered offer was for one load at $1.3725.
Butter was up $.015 at $2.64. Three loads were sold, including one at $2.64. The last unfilled bid was on two loads at $2.6375. The last uncovered offer was for one load at $2.65.
Nonfat dry milk was $.0025 higher at $.845. The last unfilled bid was on one load at $.845.
HighGround Dairy reports milk production in the United Kingdom for the week ending June 17th was down 0.5% on the year and production in France for the week ending June 18th was 1.4% lower.
The USDA says the Class II price for June 2017 is $16.15 per hundredweight, up $1.31 from May 2017, the Class III price is $16.44, $.87 higher, and the Class IV price is $15.89, an increase of $1.40.
The USDA reports cash butter for the week ending June 24th averaged $2.55 per pound, up $.096 on the week. 40 pound blocks of cheddar came out at $1.70, down $.01. 500 pound barrels averaged $1.50, down $.027. Dry whey was pegged at $.476, a decrease of $.016. Nonfat dry milk averaged $.921, $.001 higher.
Source: Brownfield Ag News
Major milk processor Murray Goulburn has lifted its opening price for the 2017-18 season from $4.70/kg milk solids to $5.20/kg and increased its forecast range of prices for the season.
The company, which has come under sustained criticism from suppliers for the low opening price, has lifted the upper end of the forecast, taking the range to $5.30/kg to $5.50/kg.
In a statement last week the company said the first price was earlier than in previous years in order to try to assist suppliers with budgeting and business planning.
Since then, Murray Goulburn has had the opportunity to review the 2017-18 budget assumptions, which include dairy commodity prices, exchange rates and achieving cost out initiatives, as well as achieving milk intake of about 2.5billion litres.
The company said the updated price has also taken into account improved commodity prices reflecting anticipated market returns, together with additional contracted sales.
‘‘MG recognises that in the current competitive environment it needs to maintain milk supply and provide improved cash flow for suppliers,’’ it said.
‘‘The decision to revise the opening price to $5.20/kg MS is intended to assist in maintaining competitiveness and support the supplier base.’’
Some suppliers have been threatening to leave the company because of the pricing announced this month.
The company also announced the start of a strategic review which will look at all aspects of MG’s strategy and corporate structure, including the profit sharing mechanism and capital structure.
Chief executive officer Ari Mervis has promised an update on the strategic review at the time of MG’s full-year results in August.
UDV president Adam Jenkins said Murray Goulburn had made a sensible decision to step-up its milk price after listening to its supplier base.
‘‘They’ve taken a positive step forward, but many farmers across Victoria are still recovering from last season’s milk price cuts,’’ Mr Jenkins said.
The UDV has urged processors to pass any upward movements in the milk market onto farmers, with many farm businesses expected to remain challenged into the new season.
‘‘We’re encouraging farmers to do their own numbers on their own farms with their own system and processors,’’ Mr Jenkins said.
Source: COUNTRY NEWS
Class III milk futures at the Chicago Mercantile Exchange were down on follow through selling and demand concerns. July was $.01 lower at $15.88, August was down $.10 at $16.67, September was $.10 lower at $16.87, October was down $.05 at $17.07.
Cash cheese blocks were unchanged at $1.525. The last unfilled bid was on one load at $1.51. The last uncovered offer was for on load at $1.525. Barrels were steady at $1.3675. One load was sold at $1.3675. The last unfilled bid was on one load at $1.34. The last uncovered offer was for one load at $1.3675.
Butter was up $.0025 at $2.625. Five loads were sold, including one at $2.625. The last unfilled bid was on one load at $2.6025. The last uncovered offer was for one load at $2.63.
Nonfat dry milk was down $.0025 at $.8525. Five loads were sold, including two at $.8425. The last unfilled bid was on one load at $.8425.
Source: Brownfield Ag News
Class III milk futures at the Chicago Mercantile Exchange were mixed, with the most active months down on demand uncertainties and profit taking after Friday’s gains. July was down $.16 at $15.89, August was $.20 lower at $16.77, September was down $.19 at $16.97, and October was $.08 lower at $17.12.
Read more: Brownfield Ag News
