DairyBusiness

An (almost) daily recap of dairy information:

Nov. 17, 2009

Dairy outlook brightens

Today’s monthly USDA Dairy Outlook report largely echoes last week}s World Ag Supply & Demand Estimates report, forecasting that rising world demand for dairy products and lower than expected milk production, both internationally and in the United States, lead to tightening stocks and rising milk prices for the remainder of 2009 and into 2010. Dairy cow numbers are expected to continue to decline throughout 2010. The U.S. dairy cow herd is expected to average about 2% smaller in 2010 than 2009; this contraction comes on the heels of an expected 3% herd reduction in 2009 compared with 2008.  For more information, visit  http://dairywebmall.com/dbcpress/?p=4853.

Milk crate thefts

Five people were indicted in Maryland last week for stealing nearly $400,000 worth of plastic pallets and crates normally used to carry soft drinks, bakery goods and dairy products. The indictments grew out of a collaborative effort by several area businesses and organizations, including Cloverland Dairy and International Dairy Foods Association, to investigate thefts over a seven-month period and provide evidence to state and local law enforcement.

USDA, DOJ schedule ‘ag competition’ workshops

The Department of Justice and USDA announced dates and locations of joint public workshops to explore competition and regulatory issues in the agriculture industry. The session dedicated to concentration, marketplace transparency and vertical integration in the dairy industry will be held June 7, 2010, in Madison, Wis. For more information, visit http://dairywebmall.com/dbcpress/?p=4856.

Tuesday’s CME cash dairy product prices:

Cheddar blocks: unchanged, at $1.5825/lb.

Cheddar barrels: unchanged, at $1.4425/lb.

Butter – unchanged, at $1.5250/lb.

Extra Grade nonfat dry milk – unchanged, at $1.40/lb.

Grade A nonfat dry milk – up 2¢, to $1.40/lb.

Class III milk futures were mostly steady, in a very narrow range.

Corn futures prices were lower; soybean and soybean meal futures prices were higher.

For today’s market activities on the Chicago Mercantile Exchange and Chicago Board of Trade, visit http://www.dairybusiness.com/dairybusiness_markets.php.

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