DairyBusiness

An (almost) daily recap of dairy information:

Nov. 20, 2009

Class I base

The December federal order Class I base price is $13.99/cwt., up $1.13 from November and the highest since January 2009, but $1.44 less than December 2008. The 2009 average is $11.48/cwt., down from $18.00/cwt. in 2008 and $18.14/cwt. in 2007. There will be no December Milk Income Loss Contract program payment.

Cull cow slaughter

USDA’s National Ag Statistics Service (NASS) estimated 226,800 culled dairy cows were slaughtered under federal inspection in October, down about 9,700 head from September 2009 and 9,400 less than October 2008.  January-October 2009 cull cow slaughter under federal inspection totaled about 2.375 million head, up about 221,000 head from January-October 2008.

October Cold Storage report

USDA’s latest Cold Storage report was released late Friday, Nov. 20.

• October butter stocks totaled 195.1 million lbs., down 14% from September, but 31% more than October 2008. September butter stocks were revised down 2.3 million lbs..

• American cheese inventory, at 579.6 million lbs., was down 3% from September, but 7% more than a year ago. September stocks were revised down 10.9 million lbs..

• Total cheese stocks were estimated at 968.4 million lbs., down 2% from September, but 17% more than a year ago. September stocks were revised up 13.4 million lbs..

This week’s markets

The cash dairy markets showed little reaction to the bullish Milk Production report issued this week – at least until Friday,  according to DairyLine Radio’s Lee Mielke.

• Block cheese closed the third Friday of November at $1.60/lb., up 2.5¢ on the week, but still 17¢ less than a year ago. Cheddar barrels closed at $1.50/lb., up 5.75¢ on the week, but 24¢ less than a year ago.  Seven cars of blocks traded hands on the week; three of barresl.

• Butter closed the week unchanged at $1.5250/lb., 6.5¢ less than a year ago. Thirteen cars were sold on the week.

• Both cash Grade A and Extra Grade nonfat dry milk closed Friday at $1.40/lb./lb. Grade A was up 2¢ on the week.

Friday’s CME cash dairy product prices:

Cheddar blocks: up 1.75¢, to $1.60/lb.

Cheddar barrels: up 5.75¢, to $1.50/lb.

Butter – unchanged, at $1.5250/lb.

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

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

Class III milk futures prices took big jumps after cheese posted gains.

Corn and soybean meal futures prices were lower; soybean 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.

Monday on DairyLine Radio

Monday’s “DMI Update” starts a three-part series with Joe Bavido, of Dairy Management Inc., reporting on the recent joint annual meeting  of the National Dairy Board, United Dairy Industry Association and National Milk Producers Federation.

“The little bit of light at the end of the tunnel that is showing now is giving them some hope,” Bavido said of the 1,000 dairy producers and industry representatives attending the meeting. The industry has a roadmap to increase dairy product sales, Bavido said. For more details, and to listen to the conversation with DairyLine’s Lee Mielke, visit 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