Dairy Profit Thursday, March 11
An (almost) daily recap of dairy information:
March 11, 2010
Rabobank dairy outlook: Australia and New Zealand
Rabobank’s monthly dairy outlook indicates global dairy prices have shown signs of stabilizing in recent weeks, following a period of modest decline. However, it is pertinent to note that current pricing is probably being set on low trade volumes, as the market drifts through the lull between a weak Southern Hemisphere season and the forthcoming peak of the Northern Hemisphere spring. Coming months will reveal whether global demand is strong enough to soak up the traditional surpluses generated in the EU spring without damaging product value in international trade.Current data trends suggest it probably is, though buyers and sellers alike will be holding their breath given the predominance of uncertainties.
Dairy Cares coalition launches statewide animal care initiative
A coalition of California dairy groups announced the launch of a statewide program to promote and verify responsible animal care on the state’s 1,750 family dairy farms. Known as the National Dairy FARM Program: Farmers Assuring Responsible Management, the new program is designed to assist farmers in demonstrating their ethical treatment of dairy livestock animals and create consistency of dairy animal care practices across the country. California dairy farmers are among the first in the nation to adopt the effort.
For more information on the Dairy Cares Five-Point Plan visit www.DairyCares.com.
For more information on the National Dairy FARM Program visit www.NationalDairyFARM.com.
Sanofi-aventis/Merck joint venture
Sanofi-aventis and Merck & Co., Inc. announced that sanofi-aventis has exercised its option to combine Merial with Intervet/Schering-Plough, Merck’s Animal Health business. The new joint venture will be equally-owned by Merck and sanofi-aventis. The formation of this new animal health joint venture is subject to execution of final agreements, antitrust review in the United States, Europe and other countries and other customary closing conditions. The completion of the transaction is expected to occur in approximately the next 12 months.
Closing on Thursday, March 11:
Cheddar blocks – down 0.75¢, to $1.2675/lb.
Cheddar barrels – up 1¢, to $1.2600/lb.
Butter – down 2¢, to $1.4650/lb.
Extra Grade nonfat dry milk – unchanged, at $1.12/lb.
Grade A nonfat dry milk – unchanged at $1.11/lb.
Class III milk futures prices were steady to higher through June 2011.
DAIRYLINE RADIO: Friday
The 2010 planting season is getting near, but we haven’t closed the books on the 2009 harvest season quite yet. Dairy Profit Weekly editor Dave Natzke reported Friday that last fall’s weather-delayed harvest forced USDA to re-survey some Great Lakes and Southeast U.S. crop growers in February, and this week’s crop production report lowered 2009 estimates for both corn and soybeans, although just slightly.
Corn production was lowered 20 million bushels, Natzke reported, but the revised estimate of 13.1 billion bushels is still a record high. Combined with lower expected exports due to large foreign supplies, dairy producers buying feed should see slightly lower corn prices, he said, with the middle of the projected range at the farm sales level about $3.60 per bushel.
The news is somewhat different for soybeans however, with 2009’s production revised at 3.36 billion bushels, down about 2 million bushels from the January estimate. Ending stocks were reduced thanks to increased activity in the export market, and this week’s Senate passage of a biodiesel tax credit could mean more soybeans will be used for fuel production. USDA put the mid-range season-average soybean price at the farm level at $9.45 per bushel, and a soybean meal price at $295 per ton. Listen to the conversation with DairyLine’s Lee Mielke.
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