Dairy Profit Monday, July 26
An (almost) daily recap of dairy information:
July 26, 2010
CWT expands export assistance program product list
Cooperatives Working Together (CWT) added U.S. butter and anhydrous milkfat (AMF) to those dairy products currently eligible for assistance under the CWT Export Assistance program.
In the past month, the butter price at the Chicago Mercantile Exchange (CME) has moved up to more than 13¢/lb. As a result, U.S. prices of butter and AMF have moved above world prices. Providing export assistance on these two products will allow its members to maintain market share in light of the increase in the U.S. prices, CWT said.
Reaction mixed to GIPSA comment period extension
USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) extended the comment period, until Nov. 22, on proposed changes covering livestock contracts and marketing arrangements. The extension was praised by the National Cattlemen’s Beef Association; criticized by The National Farmers Union.
By the numbers: Dairy Consumer Price Index
Overall June 2010 retail dairy product prices were +0.1% compared to May 2010 and +1.9% compared to June 2009, increasing slightly more than the index for all food at home, according to Consumer Price Index (CPI) data released by the Bureau of Labor Statistics.
Checking out individual products (June 2010 vs. May 2010 and June 2009, respectively): fluid milk: +1.8%; +6.0% [whole milk: +3.0%; +8.1%; other milk: +0.8%; +4.8%]; cheese: -0.7%; +0.8%; butter: +0.5%; +5.8%; ice cream: -0.2%; +0.2%%; and “other” dairy products: -1.2%; -1.8%.
MARKETS:
Class III futures up
Closing on Monday, July 26:
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 – unchanged, at $1.21/lb.
Class III milk futures – monthly Class III contract prices were higher through June 2011.
INDUSTRY NEWS
DeLaval hosts ‘profound productivity’ tour in Pennsylvania
Vincel named GM for Select Sire Power, Inc.
New Zealand travel scholarships offered to young Jersey breeders
NEW PRODUCTS
New heavy-duty Kuhn power tillers
Dairyland Seed expands hybrid alfalfa line
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