Dairy Profit Friday, July 30
An (almost) daily recap of dairy information:
July 30, 2010
Federal order class prices announced for July
USDA announced the July federal order Class III price at $13.74/cwt., up 12¢ from June and $3.77 more than July 2009. That pulls the 2010 average to $13.60/cwt., up from $10.16/cwt. a year ago, and compares to $18.25/cwt. for the same period in 2008. The Class IV price is $15.75/cwt., up 30¢ from June and $5.60 more than a year ago. The Class II price is $17.10/cwt. up $1.09 from June and $6.23 more than a year ago.
More numbers
• Milk-feed price ratio: Slightly higher milk prices offset higher corn and soybean prices, resulting in a July 2010 milk-feed price ratio of 2.31, up slightlt from June’s revised estimate of 2.28, according to USDA’s Ag Prices report. It compares to just 1.57 in July 2009.
The July preliminary U.S. all milk price was estimated at $16.00/cwt., up 50¢ from June 2010’s revised estimate of $15.50/cwt., and $4.70 more than July 2009. Corn averaged $3.55/bushel, up 14¢ from June, but 5¢ less than a year ago. The soybean price, at $9.79/bushel, was up 34¢¢ from June, but $1.01 less than July 2009. Alfalfa baled hay was $117 per ton, down $2 from June and $3/ton less than a year ago.
• Cull cow prices. Monthly average cull cow prices inched upward again. July 2010 cull cow prices (beef and dairy combined) averaged $58.40/cwt., up from June’s revised estimate of $57.80/cwt., and $11.00/cwt. higher than July 2009’s average of $47.40, according to USDA’s preliminary Ag Prices report.
• Replacement cow prices. U.S. quarterly average replacement cow prices were steady in July 2010. Based on USDA’s July Ag Prices report, U.S. average prices decreased just $10/head from April 2010, to $1,310/head. The July 2010 average was $40/head more than July 2009, but $670 less than July 2008.
MARKETS:
Butter closes higher
Closing on Friday, July 30:
Cheddar barrels – unchanged, at $1.5575/lb.
Cheddar blocks – unchanged, at $1.6025/lb.
Butter – up 1¢, to $1.8150/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 mixed in a narrow range through November 2011.
The week in review
CME cash dairy product prices remain strong, but cheese may be showing a little weakness, according to DairyLine Radio’s Lee Mielke. CME cheddar blocks closed the last week of July at $1.6025/lb., unchanged on the week following six weeks of gain, and 31.75¢ more than the corresponding week a year ago. Cheddar barrels closed at $1.5575/lb., down 0.25¢t on the week, but 29.75¢ more than a year ago. Six cars of blocks traded hands on the week; eight of barrels.
CME cash butter gained 1.5¢ on the week, closing Friday at $1.8150/lb., up 57¢ from the corresponding week a year ago. Nine cars were sold.
DAIRYLINE RADIO:
Monday: DMI Update
Jim Montel, executive vice president of strategic initiatives for Dairy Management Inc., is back in Monday’s “DMI Update.” He’ll talk about the dairy checkoff partnerships with Domino’s and Pizza Hut. He reported that 25% of U.S. cheese is consumed on pizza, making it the No. 1 usage.
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.”