Dairy prices see ups and downs

Dairy prices saw ups and downs the second week of 2017, with the anticipation of Super Bowl demand and the after-effects of rains in California not seen in a decade. By Lee Mielke
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CME block cheddar climbed to $1.75 per pound by Thursday but was offered lower Friday the 13th to close at $1.7250, up 5 1/2-cents on the week and 23 cents above a year ago.
The barrels closed at $1.64, up 6 1/2-cents on the week and 11 1/2-cents above a year ago.
The markets were closed Monday for Martin Luther King Day but the blocks lost 2 cents Tuesday, falling to $1.7050, while the barrels inched a quarter-cent lower, to $1.6375.
Abundant milk is flowing from bottling plants to cheese vats as colleges and universities return from the holiday break, according to Dairy Market News.
Spot butter started last week with an 8-cent jump Monday, hitting $2.30 per pound, but lost ground from there, and closed Friday at $2.2250, a half-cent above the previous week, but 2 1/2-cents below a year ago. The butter gained a penny and a half Tuesday, climbing back to $2.24 per pound.
DMN reports that the reopening of educational institutions resulted in plentiful cream from bottlers across the Central region but contacts also reported a slight uptick in cream demand from Class II producers aiming to ramp up ice cream production.
Cash Grade A nonfat dry milk finished the week at $1.0325 per pound, down 2 cents but 29 cents above a year ago and was unchanged Tuesday.
GDT inches up
The Jan. 17 Global Dairy Trade auction reversed its direction of the previous two events. The weighted average for all products offered inched up 0.6 percent, following a drop of 3.9 percent on Jan. 3 and 0.5 percent on Dec. 20.
Buttermilk powder led the declines, down 10.1 percent. Skim milk powder was down 1.6 percent and whole milk power was off 0.1 percent.
Rennet casein was up 4.9 percent, anhydrous milkfat was up 3.7 percent, butter was up 1.6 percent, and cheddar cheese was up 1.3 percent.
FC Stone equated the average GDT butter price to $2.0098 per pound U.S., first time topping $2 since Feb. 4, 2014. CME butter closed Tuesday at $2.24. GDT cheddar cheese equated to $1.7872 per pound U.S., topping Tuesday’s CME block cheddar at $1.7050. GDT skim milk powder averaged $1.1848 per pound U.S. and whole milk powder averaged $1.4890 per pound U.S. The CME Grade A nonfat dry milk price closed Tuesday at $1.0325 per pound.
Milk forecasts raised
The USDA raised its 2016 milk production forecast from a month ago due to a slightly higher milk cow estimate in its latest World Agricultural Supply and Demand Estimates report. The 2017 estimate was also raised based on improved returns supporting increases in cow numbers and milk per cow.
2017 production and marketings were projected at 217.1 billion and 216.1 billion pounds, respectively, up 300 million pounds on production and up 200 million pounds on marketings from last month. If realized, 2017 production would be up 4.6 billion pounds or 2.2 percent from 2016.
Look for the 2017 Class III milk price to average $16.35-$17.15 per cwt., up 50 cents from last month’s report, and compares to $22.34 in 2014, $15.80 in 2015 and $14.87 in 2016.
The 2017 Class IV price was forecast at $15.25-$16.15 per cwt., up $1.05 from last month’s projection and compares to $22.09 in 2014, $14.35 in 2015, and $13.77 in 2016.
Calif. Class I down
California’s Class I milk prices lost more ground. The February Class I price is $18.13 per cwt. for the north and $18.40 for the south. Both are down 64 cents from January but are $3.15 above February 2016.
The two-month average is at $18.45 for the north, up from $16.43 at this time a year ago and compares to $18.29 in 2015. The southern two-month average is at $18.72, up from $16.70 a year ago and $18.56 in 2015.
Fluid sales higher
Fluid milk consumption crept a little higher, following a 3.5 percent slide. November packaged fluid milk sales totaled 4.18 billion pounds, up 0.4 percent from November 2015, according to USDA.
Conventional product sales totaled 3.96 billion pounds, down 0.2 percent from a year ago; organic products, at 222 million pounds, were up 11.6 percent. Organic represented about 5.3 percent of total sales for the month.
Total packaged fluid milk sales for the 11 months of 2016 totaled 44.8 billion pounds, down 0.7 percent from a year ago.
Year-to-date sales of conventional products, at 42.5 billion pounds, were down 1.0 percent; organic products, at 2.4 billion pounds, were up 6 percent. Organic represented about 5.3 percent of total fluid milk sales thus far in 2016.
Source: CapitalPress
Link: http://www.capitalpress.com/Dairy/20170117/dairy-prices-see-ups-and-downs

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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