The block Cheddar, after dropping 4 cents last Tuesday, regained the ground and closed Friday at $2.14 per pound, unchanged on the week, but 23 3/4-cents above a year ago. They were unchanged Monday but jumped 3 cents this Tuesday, closing at $2.17 per pound.
The Cheddar barrels reversed five weeks of decline and closed Friday at $2.11, up 18 3/4-cents on the week, 24 cents above a year ago, and restored a more typical 3 cent spread. The barrels were unchanged Monday and Tuesday, but the spread widened to 6 cents. Six cars of block traded hands last week and none of barrel.
Cash butter, last Tuesday, dipped to the lowest level since Feb. 19 but rallied Wednesday and Thursday and closed Friday at $1.89, up 8 cents on the week, 35 3/4-cents above a year ago, and reversed five weeks of decline. It jumped 4 cents Monday and 9 cents this Tuesday, hitting $2.02 per pound. Twenty cars were sold last week in the cash market.
Cash Grade A nonfat dry milk closed Friday at $1.2425 per pound, down a quarter-cent on the week, and the lowest since July 11, 2012. The powder was also unchanged this Monday and Tuesday.
Milk-feed ratio highest in 7 years
The preliminary October milk-feed price ratio was up from the revised September level, according to the Agriculture Department’s latest Ag Prices report. The October milk-feed price ratio is at 3.07, up from 2.97 in September, the highest level in seven years, and compares to 2.10 in October 2013.
The index is based on the current milk price in relationship to feed prices for a ration of 51 percent corn, 8 percent soybeans and 41 percent alfalfa hay, in other words, 1 pound of milk today can purchase 3.07 pounds of dairy feed containing that blend.
The October U.S. average all-milk price was $25.30 per hundredweight, down from $25.70 per cwt. in September, and compares to $20.90 per cwt. in October 2013.
October corn, at $3.28 per bushel, was down 20 cents from September and $1.35 less than October 2013. Soybeans averaged $9.64 per bushel, down $1.26 from September, and $2.86 per bushel below October 2013. Alfalfa hay averaged $194 per ton, down $3 from September, but $1 per ton more than October 2013.
Looking at the cow side of the ledger, the report shows the preliminary October cull price for beef and dairy combined averaged $117.00 per cwt., down $1 per cwt. from September, but $35.80 per cwt. above October 2013, and compares to the 2011 average of $71.60 per cwt.
Prices received for milk cows was $2,120 per head. The September number was not available but compares to an October 2013 average of $1,410, and a 2011 average of $1,420 per head.
California milk prices slip
The California Department of Food and Agriculture announced the October 4b cheese milk price Monday at $20.94 per hundredweight, down $1.45 from September but $4.12 above October 2013. That pulls the 2014 4b average to $20.57, up from $16.17 at this time a year ago and $15.16 in 2012.
The 4a butter-powder milk price is $21.51, down $1.21from September but $1.51 above a year ago. The 4a average is now at $22.93, up from $18.44 a year ago and $15.18 in 2012.
Global Dairy Trade auction slips
Tuesday’s Global Dairy Trade auction saw the weighted average for all products slip 0.3 percent, after inching up 1.4 percent in the Oct. 15 event, the first uptick since the short-lived gain on June 17. The price index has pretty much seen declines since reaching its high on Feb. 4.
The dip Tuesday was led by a 9.2 percent drop in Cheddar cheese, which was down 1 percent in the last event. Buttermilk powder was next, down 6.9 percent, following a drop of 3.8 percent last time. Butter followed, dropping 4.1 percent after jumping 3.9 percent last time. Rennet casein was off 2.2 percent, following a 5.3 percent decline last time. Anhydrous milkfat was down 1.6 percent, which was up 7.4 percent last time, and skim milk powder was down 1.2 percent, following a 3.6 percent decline last time.
Sweet whey powder, which was up 4.3 percent last time, was today listed “NP” not published which, according to GDT’s new rule, means today’s winning price was equal to the product’s starting price. Lactose was listed as “NPO,” meaning no product was offered.
Only one product registered an increase. Whole milk powder was up 1.6 percent after gaining 3.1 percent last time.
FC Stone reports the average GDT butter price equated to about $1.1364 per pound U.S., down from $1.1856 in the October 15 event ($1.1087/lb. on 80 percent butterfat, down from $1.1567/lb.). Contrast that to CME butter which closed Tuesday at $2.02/lb. The GDT Cheddar cheese average was $1.2375 per pound U.S., down from $1.3639. The U.S. block Cheddar CME price closed Tuesday at $2.17/lb. GDT skim milk powder, at $1.1005 per pound U.S., is down from $1.1169, and the whole milk powder average at $1.1439 U.S., is up from $1.1354 in the last event. The CME Grade A nonfat dry milk price closed Tuesday at $1.2425/lb.
FC Stone’s Mary Ecklund said: “The key takeaway from today’s GDT auction event is there is no nervousness on behalf of buyers. Volumes dropped off but buyers are able to pick away at lower levels as they desire without having to put up much of a fight against competitive bids. The larger trend lower remains intact.”
Source: Capital Press