Overview of Holstein Association Herd Reduction Plan Available
Mon, 18 May 2009 12:26:00 GMT
The Holstein Association has made available a summary of their supply management proposal. Click here to download this proposal.
CWT Buyouts Do Not Translate Into Higher Class III Futures Prices
Fri, 15 May 2009 11:05:00 GMT
After Wednesday’s CWT based rally, milk futures dropped back yesterday. June through October ‘09 all declined at least 20¢, giving back most of the gains.
Latest WASDE Report Show High Feed Costs to Continue
Thu, 14 May 2009 13:15:00 GMT
The USDA said Tuesday in its first official projections of this year’s crops that it expects a season-average price of corn to be harvested in the fall of $4.10 a bushel, give or take 40 cents a bushel. While that price is far less than the $7.50 that corn briefly neared last June, it is just a dime less than the record season-average price for the 2007 crop.
Likewise, the USDA expects the season-average price of the 2009 soybean crop to fluctuate around $9.45 a bushel, give or take a dollar, a midpoint that is just 4% less than the price of the crop harvested last fall.
For the complete WASDE report click here.
CWT to remove over 100,000 cows, 2 Bil. lbs of milk in its latest herd retirement effort
Wed, 13 May 2009 19:37:00 GMT
The CWT announced today that it has tentatively accepted 388 bids representing 102,898 cows and 2 bil. lbs. of milk production capacity in the first of a series of herd retirements planned over the next twelve months. The number of cows and pounds of milk represent the largest single herd retirement carried out in the six year history of CWT. For more detail concerning this rounds of herd reduction, click here.
Big Drop in 2009 1st Quarter Export Sales
Wed, 13 May 2009 12:59:00 GMT
Data concerning March U.S. export and import sales values were released yesterday by USDA. They show a 39.6% drop in 1st quarter value of dairy exports and a 7.6% increase in 1st quarter value of dairy imports.
USDA Releases Initial 2010 Dairy Forecasts
Wed, 13 May 2009 12:14:00 GMT
Yesterday the USDA issued its 2010 dairy market projections in its May WASDE report, forecasting continued declines in milk production and higher milk and dairy product prices. The department projects milk prod. to decrease 0.5% in 2010, to 186.6 bil. lbs. This year’s output is projected to decrease by 0.9% to 187.7 billion lbs.
The July '09 - Mar '10 Class III Futures Have Double Digit Declines
Thu, 07 May 2009 12:51:00 GMT
The settle prices at the end of business on May 6th represent double digit declines for Class III futures contracts for the months of July ‘09 - Mar ‘10. The May ‘09 futures settled at a new contract low.
CME Spot Price for Barrels Are 4¢ Below Support
Thu, 07 May 2009 12:41:00 GMT
At the end of business yesterday (May 6th) the CME spot price for cheddar barrels were 4¢ below support price. Cheddar blocks are at their lowest level since January.
March Dairy Product Production Data Released Today
Mon, 04 May 2009 19:43:00 GMT
According to today’s Dairy Products report, total cheese output was 871 mil. lbs, 4.3% March 2008. U.S. butter production was 145 mil. lbs., 4.4% below March 2008.
Cost-of-Production Based Milk Price System Proposed
Fri, 01 May 2009 14:34:00 GMT
The latest proposal from Sens. Arlen Specter and Robert P. Casey Jr., Democrats of Pennsylvania, would require the USDA to base the Class III price upon the national average cost of production. In practice, the bill would fundamentally revamp the way the government dictates minimum prices that food companies must pay farmers for milk. But the bill’s ambitious reach appears to be its stumbling block; lobbying groups for farmer-owned cooperatives and the companies that buy their milk both oppose it.
