DairyBusiness

An (almost) daily recap of dairy information:

July 29, 2009

What took so long?

Dozens of members of the House of Representatives announced, July 29, that they will reform and reactivate the Congressional Dairy Farmer Caucus. The bipartisan caucus will work with dairy industry leaders to reach “common sense” solutions to address both the current dairy crisis, as well as other issues of concern to the dairy producer community. For more information, visit http://dairywebmall.com/dbcpress/?p=3714.

‘Make allowances’ clear court hurdle

The U.S. Court of Appeals for the District of Columbia upheld a USDA decision to increase manufacturer’s or “make” allowances for processors of Class III and Class IV milk. The lawsuit, filed by a group of dairy cooperatives, challenged the USDA tentative partial final decision, issued in July 2008, that amended the Class III and Class IV product price formulas in all federal milk marketing orders.

Wednesday’s markets

CME cash cheese markets moved higher, with blocks and barrels both up 1¢/lb.; butter declined 0.5¢/lb. Higher cheese prices weren’t enough to protect CME Class III milk futures, however, with last-quarter 2009 prices suffering the greatest declines, and all months from August 2009-December 2010 posting decreases.

CBOT corn, soybean and soybean meal futures prices were mostly lower. For today’s market activities on the Chicago Mercantile Exchange and Chicago Board of Trade, visit http://www.dairybusiness.com/dairybusiness_markets.php. 

According to CME Daily Dairy Report editor Alan Levitt, it was one year today the last time the cheese market was above $2.00/lb. On July 29, 2008, blocks settled at $2.0825/lb., falling 11.25¢ the next day to $1.9700/lb., and they haven’t been back to $2.00 since. From that point to the end of 2008, blocks still averaged $1.74/lb.. So far in 2009, blocks have averaged $1.17/lb., the lowest average for that time period since 2000, Levitt said.

Thursday on DairyLine Radio

National Milk Producers Federation (NMPF) provided input to House members of the reactivated Congressional Dairy Farmer Caucus, and is recruiting other members. According to NMPF’s Chris Galen, at least 50 House members are on board, even members who may not represent rural areas because, “They realize a lot of people have a stake in dairy farming, not just farmers, but ultimately consumers who want to have affordable and locally-produced foods. They have a stake in dairy policy as well.”  Read more details or listen to the conversation with DairyLine’s Lee Mielke at www.dairyline.com.

Supply management poll

DairyLine Radio’s ongoing poll results: Do you favor a national supply management program?

52% – Yes; 36% – No; 12% – Maybe

Read more details or participate in the poll at www.dairyline.com.

For a sample copy of Dairy Profit Weekly, or subscription information, visit www.dairyprofit.com or phone: 800-334-1904, ext. 244.

Dave Natzke, Editor