Washington Dairygrams - January 25, 2011

Washington Dairygrams - January 25, 2011

CASH BUTTER PRICE soared 43 cents a pound in one week to the $2.10 range. Global butter stocks tight. U.S. butter stocks down over 50 percent, although U.S. butter production in November was up nearly 10 percent over 2009.

BLOCK CHEESE CASH PRICE just under $1.40, down from $1.50 in early December. Cheese inventory up 5 percent. November output was up 6 percent.

BENCHMARK CLASS III PRICE for December was $13.83, down $1.61 from November. Class III futures for February through December averaged $15.28.

USDA PROJECTS Class III price to average around $14.70 in 2011, about 30 cents more than 2010. All-Milk Price projection is around $16.30, same as last year.

CHINA’S DEMAND for imports of whole milk powder this year, estimated to be as much as 400,000 tons, could set high floor under world dairy prices. Global dairy trade prices showed strength at most recent internet auction.

WHO WILL FILL NEED? Among major exporters, milk output in New Zealand could be up 10 percent this year. However, no growth expected in EU, and U.S. could be up just 1 percent. Argentina, up 4 percent; Australia, up 3.

EXPECT MILC PAYMENTS to return based on milk and feed futures. Payments for January, February, and March could be in the 50 cent-per-hundred range.

FLUID MILK SALES for August through October were down 2.6 percent compared to a year ago. Year-to-date fluid milk sales were down 1.7 percent from 2009.

WEBSITE PROVIDES recommendations and background materials for Dairy Industry Advisory Committee. Go to http://tinyurl.com/DIAC-Committee.

CHEESE EXPORTS TO MEXICO down 66 percent due to tariffs imposed because of trucking dispute. Mexico accounts for 30 percent of U.S. cheese exports.

BRIEFLY: Dairy cow slaughter was down during 2010, but rate was up sharply during last weeks of the year. Congressional Dairy Caucus vice-chair Tom Rooney (R-Fl) will head House Livestock, Dairy, and Poultry Subcommittee. Ag research funding could come under fire as budget cuts get higher priority on the Hill. Many research projects resulted from “earmarks”. January Class I mover is $15.20, down $1.76 per hundredweight from December. New producer group attracting attention (www.nationaldairyproducers.org)

Back to Dairygrams archives