Dairy Profit Monday
An (almost) daily recap of dairy information:
Dec. 21, 2009
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Fluid sales
Dairy Market News reported about 4.9 billion lbs. of packaged fluid milk products were estimated to have been sold in the United States in October 2009, 0.8% more than October 2008. After adjusting for calendar composition, October 2009 sales were 0.2% higher than October 2008. On an individual product basis, after adjusting for calendar composition, sales of regular 2%, 1% and buttermilk were up from October 2008, while sales of regular, flavored and organic whole milk, regular skim, flavored 2% and organic 2% milk decreased from a year earlier.
Correction: January 2010 Class I base
The January 2010 federal order Class I base price is $15.03/cwt. (not $15.01 as indicated here on Friday), up $1.04 from December 2009, but still 71¢ less than January 2009.
Seed technology agreement
BASF Plant Science and Monsanto signed an agreement to develop and commercialize new corn hybrids combining the two companies’ genetic traits. The new hybrids will contain BASF’s NutriDense traits – higher levels of essential amino acids and energy, greater phosphorous availability and enhanced digestibility – with Monsanto’s Roundup Ready Genuity VT Triple PRO and Genuity SmartStax corn. Once launched, seed companies will market the new hybrids through licensing agreements.
Monday’s CME cash dairy product prices
Monday’s CME cash dairy markets didn’t react much to last Friday’s milk production data. The block cheese price inched
0.25¢/lb. lower lower, while the barrels lost 1¢/lb. and widened the spread to 27¢. Butter was unchanged.
Cheddar blocks: down 0.25¢, to $1.70/lb.
Cheddar barrels: down 1¢, to $1.43/lb.
Butter – unchanged, at $1.3250/lb.
Extra Grade nonfat dry milk – unchanged, at $1.40/lb.
Grade A nonfat dry milk – unchanged, at $1.37/lb.
Class III milk futures prices were mixed.
Corn futures prices were higher; soybean and soybean meal futures were lower.
For today’s market activities on the Chicago Mercantile Exchange and Chicago Board of Trade, visit http://www.dairybusiness.com/dairybusiness_markets.php.
Tuesday on DairyLine Radio
Market analyst and CME Daily Dairy Report editor Alan Levitt said the cheese market appears to be under pressure. Last week saw a lot of product sold below the market, price before final transactions pushed the price back up. He warned that more milk will be moving to manufacturing – due to less fluid demand because of school breaks for the Christmas and year-end holidays – and more milk will move into the block vat, away from the barrels. The block price may slip, according to Levitt, and “the short term outlook isn’t as bullish as we’d like.” Butter has lost 20¢ in the month, but medium and longer term, “there’s reason to be positive,” Levitt 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