Dairy Profit Friday, July 23
An (almost) daily recap of dairy information:
July 23, 2010
Mid-year dairy cow and heifer count
July cow numbers are up, but heifer numbers are substantially lower, according to USDA’s mid-year estimate.
As of July 1, 2010, there were 9.10 million cows in U.S. herds, about 19,000 more than Jan. 1, 2010, but 100,000 less than July 1, 2009, according to USDA’s semiannual cattle estimate.
Dairy replacement heifers (weighing more than 500 lbs.) were estimated at 4.05 million on July 1, 2010, down 466,000 head from Jan. 1, 2010, but 100,000 more than July 1, 2009.
Based on these estimates, there were 44.5 replacements (>500 lbs.) for every 100 cows in U.S. herds on July 1, 2010. That compares with 49.7 replacements per 100 cows as of Jan. 1, 2010 and 42.9 replacements per 100 cows on July 1, 2009.
USDA’s mid-year cattle estimate is less extensive than the Jan. 1 report, and does not include individual state information. Historically, as illustrated by Table 1, the mid-year estimate also reports fewer heifers as a percentage of cows than the Jan. 1 estimate.
Dairy proposal economic analysis release to be delayed
Julie Walker, AgriVoice Enterprises, reported a dairy coalition meeting was held July 20-21, in Chicago, to review economic models of various “dairy stabilization” proposals. The grade: incomplete. The group will schedule another meeting in early September for a final review, and then release results.
By the numbers
The August 2010 federal order Class I base milk price is $15.77/cwt., up 11¢ from June 2010 and $5.73 more than August 2009. USDA’s National Ag Statistics Service estimated 214,200 culled dairy cows were slaughtered under federal inspection in June 2010, up about 5,100 head from May 2010, but 41,800 head less than June 2009.
MARKETS:
(Fairly) steady as she goes
Closing on Friday, July 23:
Cheddar barrels – unchanged, at $1.56/lb.
Cheddar blocks – unchanged, at $1.6025/lb.
Butter – unchanged, at $1.80/lb.
Extra Grade nonfat dry milk – unchanged, at $1.2250/lb.
Grade A nonfat dry milk – down 0.75¢, to $1.21/lb.
Class III milk futures – monthly Class III contract prices were slightly higher through June 2011.
The week in review
All eyes waited to see how cash dairy markets would react to the bearish June milk production report, according to DairyLine Radio’s Lee Mielke. The response:
• Cheese prices continued to move higher for a sixth consecutive week. CME cheddar blocks closed Friday at $1.6025/lb., up 2.75¢ on the week and 40.25¢ more than the corresponding week a year ago. CME cheddar barrels closed at $1.56/lb., up 3.5¢ on the week and 39¢ more than a year ago. Six cars of blocks traded hands on the week; eight of barrels.
• Cash butter closed Friday at $1.80/lb., up 2.5¢ on the week and 54¢ more than the corresponding week a year ago. Butter has also increased for six weeks in a row. Only one car was sold all week.
• Cash Grade A nonfat dry milk closed Friday at $1.21/lb., down 0.75¢ on the week; Extra Grade held all week at $1.2250/lb.
DAIRYLINE RADIO:
Monday: DMI Update
America loves cheeseburgers, and dairy farmers have impacted the value chain, according to Jim Montel, executive vice president of strategic initiatives for Dairy Management Inc. He talks about the dairy checkoff’s partnership with McDonalds in Monday’s “DMI Update,” noting the restaurant chain’s introduction of cheesy Angus burgers has spurred competition at Burger King and Wendy’s.
To read Montel’s remarks, visit www.dairyline.com under “Today’s Dairy News.” Or, listen to the conversation with DairyLine’s Lee Mielke by clicking on “DairyLine Daily Broadcast.”
Check for daily DPW news updates at www.dairybusiness.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