Dairy Market News

Most Dairy Products Have Higher June Production Levels Compared to 2007

Brian Gould — Tue, 05 Aug 2008 07:26:00 -0500

Total cheese production for June was 803.3 mil. lbs. an increase of 1.3% vs. 2007.
Butter production was 119.8 mil. lbs., an increase of 9.0%. NDM/SMP production was 166.1 mil. lbs., an increase of 23.4%. June Dry whey production decreased 2.3% to 92.5 million lbs.

July Class III is $18.24

Brian Gould — Fri, 01 Aug 2008 11:29:00 -0500

The July Announced Class III price is $18.24. This represents a $2.01 drop from the June price and a $3.14 drop from July ‘07.

Class III and IV Make Allowance Changes to Take Effect Sept. 1

Brian Gould — Thu, 31 Jul 2008 04:44:00 -0500

The USDA issued an interim final rule updating the manufacturing make-allowance. This decision amends the manufacturing allowances for cheese, nonfat dry milk, and dry whey. This also will increase the butterfat yield factor.

CME Spot Barrel Prices Post a Record 1-Day Decline

Brian Gould — Thu, 31 Jul 2008 04:33:00 -0500

Barrel cheese price fell 28¢, closing at $1.65 with 12 loads sold. This is the largest one-day price decline in history, pushing price to the lowest level since May 16, 2007. Blocks lost 11.25¢ and closed at $1.97.

As a result of the cheese price decline the SEP-JAN milk futures contracts closed down the 75¢ daily limit. Futures contracts in 2009 averaged $18.51 on the close, dropping 47¢ from Tuesday. The 12-mo. average price for 2009 declined $2.08 since June 18.

Block-Barrel Spread Increases to $0.1475

Brian Gould — Wed, 23 Jul 2008 16:23:00 -0500

Since July 17^th the CME block barrel spread increased from $0.0300 to $0.1475 today.

June End-of_month Butter Stocks Decreases for the First Time Since 1999

Brian Gould — Wed, 23 Jul 2008 15:59:00 -0500

End of June commercial butter stocks dropped 13.3 million lbs., the first June contraction since 1999. End of June butter stocks were 256.1 mil. lbs.

Cheese Stockes Exceed 900 Mil. Lbs. for the First Time Since 1986

Brian Gould — Wed, 23 Jul 2008 15:43:00 -0500

Total June commercial natural cheese stocks exceeded 900 mil. lbs. for the 1^st time since 1986. Total cheese stocks at the end of June were 905.1 million lbs. an increase of 23.8 mil. lbs. from the prior month.

U.S. June Milk Production Increases 3.4%

Brian Gould — Fri, 18 Jul 2008 15:59:00 -0500

June Milk production in the 23 major States was 14.7 bil. lbs., up 3.4% from June 2007. June production per cow in the 23 major States averaged 1,737 lbs, 25 pounds above June 2007. The number of milk cows on farms in the 23 major States was 8.46 million head, 158,000 head more than June 2007, and 1,000 head more than May 2008.

CWT Accepts Herd Retirement Bids Accounting for Nearly a Half a Billion Lbs. of Milk

Brian Gould — Fri, 18 Jul 2008 09:23:00 -0500

Cooperatives Working Together announced on July 17^th that it has tentatively accepted 209 bids in its herd retirement program, representing 25,474 cows and 440 million pounds of milk.

Starting next week, CWT field auditors will begin visiting the 209 farms whose bids were accepted, checking their milk production records, inspecting their herds, and tagging each cow for processing. All farmers will be notified no later than August 12^th as to whether their bid was among those accepted in this fifth herd retirement round.

The August Class I Mover Declines to $18.47

Brian Gould — Fri, 18 Jul 2008 09:13:00 -0500

The Advance Class I mover for August is $18.47. This represents a $2.31 decline from July and a $2.98 drop from Aug. ‘07