DAIRY MARKET NEWS WEEK OF APRIL 23 - 27, 2018 VOLUME 85, REPORT 17 DAIRY MARKET NEWS AT A GLANCE TABLE OF CONTENTS Product Highlights/CME/DMN at a Glance 1 Weekly CME Activity/Butter Markets/NDPSR 2 Cheese Markets 3 Fluid Milk and Cream 4 Nonfat Dry Milk/Dry Buttermilk/Dry Whole Milk 5 Dry Whey/WPC 34%/Lactose/Casein 6 U.S. Dairy Cow Slaughter/Class Milk Prices 7 International Dairy Market News 8 CME Dairy Futures 9 March Milk Production 10 March Cold Storage 11 April Retail Prices for Conventional and Organic Milk 12 March Marketing and Utilization Summary 16 Dane County Farmers Market Cheese Price 17 2017 Annual Mailbox Prices 18 Dairy Graphs G1 Dairy Market News Retail Report Dairy Market News Contacts CME GROUP CASH MARKETS (4/27) BUTTER: Grade AA closed at $2.3600. The weekly average for Grade AA is $2.3620 (+.0605). CHEESE: Barrels closed at $1.4875 and 40# blocks at $1.6200. The weekly average for barrels is $1.4860 (+.0045) and blocks, $1.6195 (-.0010). NONFAT DRY MILK: Grade A closed at $.8425. The weekly average for Grade A is $.8300 (+.0555). DRY WHEY: Extra grade dry whey closed at $.3100. The weekly average for dry whey is $.3115 (+.0030). BUTTER HIGHLIGHTS: International butter markets are the topic du jour for butter producers in the U.S. Butter makers are reporting steady to strong sales domestically, but international interest is definitely pushing northerly. Cream supplies are readily available. Western butter producers have suggested that ice cream manufacturers are starting to edge in on the cream pool, but that the effects are yet to be actualized as cream offers remain ubiquitous, and churns run regularly. Cream prices are steady to slightly up week over week. Bulk butter prices ranged from 5 cents under to 8 cents over nationally. The CME Group cash price for Grade AA butter is $2.3600, compared to $2.3150, last Friday’s price. CHEESE HIGHLIGHTS: General interest in U.S. cheese from international buyers has aided the movement of cheese stocks into foreign markets. The domestic cheese market tone is progressive. Cheese demand is steady with strong demand for blocks and barrels. Cheesemakers report consistent restaurant and retail orders nationwide, with sales expected to rise as the summer grilling season nears. Despite the cheery news, some Western contacts report slightly long stocks for barrels and heavy inventories for natural cheese varieties, such as mozzarella and hard Italian. The U.S. cheese production is steady with producers managing heavy milk supplies very well. The spring flush arrived in the Northeast this week as warmer weather moves into the region. Milk prices remain discounted, ranging from $2 to $4 under Class III. The CME Group weekly average for barrels, $1.4860, is up $.0045 from last week’s average. The average for blocks, $1.6195, is down $.0010 from last week’s average. FLUID MILK: With current favorable weather conditions in most regions of the U.S., milk production is steady to increasing in the Northeast, Mid-Atlantic, Midwest, Arizona, Pacific Northwest, and the mountain states of Idaho, Utah, and Colorado. Nonetheless, in the Southeast, California, and New Mexico, outputs have slightly decreased. In the Southeast, the decrease in milk production could be associated with lower milk prices and seasonality effects. In the Mid- Atlantic, some processors says that the loads of milk available for processing activities are less than what is needed. Bottling orders are mainly steady to lower in the whole country, except in New Mexico and the Southeast, where they have augmented. Condensed skim inventories are profuse and selling at discounted prices. Cream is available for all usages in the East and Central, but in the West, availability varies. In some parts of the Midwest, the recent wintery climate is causing the postponement of ice cream production. Cream multiples for all Classes range 1.15-1.25 in the East, 1.17-1.25 in the Midwest, and 1.03-1.24 in the West. DRY PRODUCTS: Prices for low/medium heat nonfat dry milk (NDM) are higher this week. The demand is mixed as some buyers are purchasing at higher prices, and others are willing to wait out this price uptrend. The market undertone is uncertain. High heat NDM prices are steady to a tad higher. Spot market activity is limited as offers from manufacturers are few. The market tone is quiet. Dry buttermilk prices are somewhat mixed. Interest is increasing and the current tone is showing some strength. Dry whole milk prices are unchanged. There have been many requests for spot loads, but availability is getting tight. The market tone is showing signs of -CONTINUED ON PAGE 1A- CME GROUP CASH TRADING COMMODITY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY :: WEEKLY :: WEEKLY APR 23 APR 24 APR 25 APR 26 APR 27 :: CHANGE* :: AVERAGE# CHEESE BARRELS $1.4900 $1.4875 $1.4825 $1.4825 $1.4875 :: :: $1.4860 (-.0100) (-.0025) (-.0050) (N.C.) (+.0050) :: (-.0125) :: (+.0045) 40# BLOCKS $1.6300 $1.6275 $1.6100 $1.6100 $1.6200 :: :: $1.6195 (+.0275) (-.0025) (-.0175) (N.C.) (+.0100) :: (+.0175) :: (-.0010) NONFAT DRY MILK GRADE A $.8325 $.8200 $.8200 $.8350 $.8425 :: :: $.8300 (+.0275) (-.0125) (N.C.) (+.0150) (+.0075) :: (+.0375) :: (+.0555) BUTTER GRADE AA $2.3200 $2.3750 $2.3750 $2.3800 $2.3600 :: :: $2.3620 (+.0050) (+.0550) (N.C.) (+.0050) (-.0200) :: (+.0450) :: (+.0605) DRY WHEY EXTRA GRADE $.3150 $.3150 $.3075 $.3100 $.3100 :: :: $.3115 (N.C.) (N.C.) (-.0075) (+.0025) (N.C.) :: (-.0050) :: (+.0030) CHEESE: carload = 40,000 lbs., BUTTER: carlot = 40,000-43,000 lbs. *Sum of daily changes. # Weekly averages are simple averages of the daily closing prices for the calendar week. Computed by Dairy Market News for international purposes. This data is available on the Internet at WWW.AMS.USDA.GOV/MARKET-NEWS/DAIRY
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DAIRY MARKET NEWS
WEEK OF APRIL 23 - 27, 2018 VOLUME 85, REPORT 17
DAIRY MARKET NEWS AT A GLANCE
TABLE OF CONTENTS Product Highlights/CME/DMN at a Glance 1 Weekly CME Activity/Butter Markets/NDPSR 2 Cheese Markets 3 Fluid Milk and Cream 4 Nonfat Dry Milk/Dry Buttermilk/Dry Whole Milk 5 Dry Whey/WPC 34%/Lactose/Casein 6
U.S. Dairy Cow Slaughter/Class Milk Prices 7 International Dairy Market News 8 CME Dairy Futures 9 March Milk Production 10 March Cold Storage 11 April Retail Prices for Conventional and Organic Milk 12
March Marketing and Utilization Summary 16 Dane County Farmers Market Cheese Price 17 2017 Annual Mailbox Prices 18 Dairy Graphs G1 Dairy Market News Retail Report Dairy Market News Contacts
CME GROUP CASH MARKETS (4/27) BUTTER: Grade AA closed at $2.3600. The weekly average for Grade AA is $2.3620 (+.0605). CHEESE: Barrels closed at $1.4875 and 40# blocks at $1.6200. The weekly average for barrels is $1.4860 (+.0045) and blocks, $1.6195 (-.0010). NONFAT DRY MILK: Grade A closed at $.8425. The weekly average for Grade A is $.8300 (+.0555). DRY WHEY: Extra grade dry whey closed at $.3100. The weekly average for dry whey is $.3115 (+.0030). BUTTER HIGHLIGHTS: International butter markets are the topic du jour for butter producers in the U.S. Butter makers are reporting steady to strong sales domestically, but international interest is definitely pushing northerly. Cream supplies are readily available. Western butter producers have suggested that ice cream manufacturers are starting to edge in on the cream pool, but that the effects are yet to be actualized as cream offers remain ubiquitous, and churns run regularly. Cream prices are steady to slightly up week over week. Bulk butter prices ranged from 5 cents under to 8 cents over nationally. The CME Group cash price for Grade AA butter is $2.3600, compared to $2.3150, last Friday’s price. CHEESE HIGHLIGHTS: General interest in U.S. cheese from international buyers has aided the movement of cheese stocks into foreign markets. The domestic cheese market tone is progressive. Cheese demand is steady with strong demand for blocks and barrels. Cheesemakers report consistent restaurant and retail orders nationwide, with sales expected to rise as the summer grilling season nears. Despite the cheery news, some Western contacts report slightly long stocks for barrels and heavy inventories for natural cheese varieties, such as mozzarella and hard Italian. The U.S. cheese production is steady with producers managing heavy milk supplies very well. The spring flush arrived in the Northeast this week as warmer weather moves into the region. Milk prices remain discounted,
ranging from $2 to $4 under Class III. The CME Group weekly average for barrels, $1.4860, is up $.0045 from last week’s average. The average for blocks, $1.6195, is down $.0010 from last week’s average. FLUID MILK: With current favorable weather conditions in most regions of the U.S., milk production is steady to increasing in the Northeast, Mid-Atlantic, Midwest, Arizona, Pacific Northwest, and the mountain states of Idaho, Utah, and Colorado. Nonetheless, in the Southeast, California, and New Mexico, outputs have slightly decreased. In the Southeast, the decrease in milk production could be associated with lower milk prices and seasonality effects. In the Mid-Atlantic, some processors says that the loads of milk available for processing activities are less than what is needed. Bottling orders are mainly steady to lower in the whole country, except in New Mexico and the Southeast, where they have augmented. Condensed skim inventories are profuse and selling at discounted prices. Cream is available for all usages in the East and Central, but in the West, availability varies. In some parts of the Midwest, the recent wintery climate is causing the postponement of ice cream production. Cream multiples for all Classes range 1.15-1.25 in the East, 1.17-1.25 in the Midwest, and 1.03-1.24 in the West. DRY PRODUCTS: Pr ices for low/medium heat nonfat dry milk (NDM) are higher this week. The demand is mixed as some buyers are purchasing at higher prices, and others are willing to wait out this price uptrend. The market undertone is uncertain. High heat NDM prices are steady to a tad higher. Spot market activity is limited as offers from manufacturers are few. The market tone is quiet. Dry buttermilk prices are somewhat mixed. Interest is increasing and the current tone is showing some strength. Dry whole milk prices are unchanged. There have been many requests for spot loads, but availability is getting tight. The market tone is showing signs of
CHEESE: carload = 40,000 lbs., BUTTER: carlot = 40,000-43,000 lbs. *Sum of daily changes. # Weekly averages are simple averages of the daily closing prices for the calendar week.
Computed by Dairy Market News for international purposes. This data is available on the Internet at WWW.AMS.USDA.GOV/MARKET-NEWS/DAIRY
-CONTINUED FROM PAGE 1- firmness. Dry whey prices are higher this week. Export interest is putting upward pressure on market prices. The tone is fairly stable. Whey protein concentrate 34% prices are somewhat mixed, however manufacturers note an uptick in buyer interest. Lactose prices moved up on both the range and mostly series. Lactose is moving well through contracts and slowly showing firmer market conditions. Rennet casein prices are a tad higher, but acid casein prices are steady. The demand is somewhat quiet as most buyers are not in immediate need to replenish supplies. INTERNATIONAL DAIRY MARKET NEWS (DMN): WESTERN AND EASTERN EUROPE: WESTERN OVERVIEW: In Europe and particularly Germany, milk production is still high, but the frosty period in February and March lowered the growth. In total, there is less milk than dairy processors had planned. This keeps Western European dairy product availability in tighter supply than desirable. That leads to firmer price trends in all markets, but especially in butter and cream. EASTERN OVERVIEW: Milk production in Poland for the twelve months March 2017-February 2018, compared with one year earlier, increased 4.8 percent according to Eurostat. OCEANIA OVERVIEW: AUSTRALIA: In Southern Australia the current season continues to be hot and dry. Many dairy producers have been hoping for an autumn break which has not yet developed. This has led to more late season feed purchases by some producers. NEW ZEALAND: New Zealand dairy processors are pleased by stronger commodity prices. Continuing strength is expected in coming weeks, perhaps months. New Zealand does not have much dairy product left to sell this season. What is available usually exists in a world of strong demand. SOUTH AMERICA OVERVIEW: During the last two weeks, some showers in ARGENTINA and URUGUAY contributed slightly to alleviate some effects of the current drought, increasing soil moisture in lands on pastures and grain crops. However, according to some industry contacts, the actual conditions of the forage, soybeans and corn crops are mostly poor. Contrary to Argentina and Uruguay, the effects of the drought in BRAZIL have been slight. Farm milk production has been reduced in part because some small/medium dairy farmers are closing their operations, mainly due to lower farm prices and higher operating costs. In CHILE, milk volumes are less than adequate to cover all processing needs. Consequently, dairy imports mainly from the United States NATIONAL RETAIL REPORT (DMN): Total conventional dairy retail advertisements decreased by 21 percent from last week to this week. On the organic side, retail ads decreased by 54 percent. Since last week, total conventional milk ads have declined 74 percent, while organic milk ads followed closely with a 78 percent decline. Retail U.S. average conventional one pound butter prices rose this week, up 49 cents this survey period, compared to last week. MARCH MILK PRODUCTION (NASS): Milk production in the 23 major States during March totaled 17.8 billion pounds, up 1.5 percent from March 2017. February revised production at 15.9 billion pounds, was up 1.8 percent from February 2017. The February revision represented a decrease of 12 million pounds or 0.1 percent from last month's preliminary production estimate. Production per cow in the 23 major States averaged 2,038 pounds for March, 22 pounds above March 2017. This is the highest production per cow for the month of March since the 23 State series began in 2003. The number of milk cows on farms in the 23 major States was 8.74 million head, 29,000 head more than March 2017, but 2,000 head less than February 2018.
MARCH COLD STORAGE (NASS): On March 31, U.S. cold storage holdings of butter totaled 273.6 million pounds, 2.9 percent higher than a month ago and 0.4 percent higher than last year. Natural American cheese holdings total 769.3 million pounds, 0.4 percent lower than a month ago, but 0.9 percent higher than a year ago. Total natural cheese stocks totaled 1.33 billion pounds, 0.8 percent higher than a month ago, and 5.2 percent higher than a year ago. RETAIL PRICES FOR CONVENTIONAL AND ORGANIC MILK, APRIL 2018 (FMMO): A survey of retail pr ices conducted by the Federal Milk Market Order administrators found conventional whole milk prices for April 2018 average $3.28 per gallon. April organic whole milk prices average $4.12 per half gallon. In April, conventional reduced fat (2%) milk gallons average $3.20 and organic reduced fat (2%) milk half gallons average $4.12. MARCH MARKETING AND UTILIZATION SUMMARY (USDA): During March, 11.1 billion pounds of milk were received from federally pooled producers. This volume of milk is 9.4 percent lower than the March 2017 volume. Regulated handlers pooled 3.5 billion pounds of producer milk as Class I products, down 2.5 percent when compared to the previous year. Class I utilization decreased from last year in 9 of the 10 Federal Milk Order Marketing areas. The all-market average Class utilization percentages were: Class I = 31 percent, Class II = 15 percent, Class III = 35 percent, and Class IV = 19 percent. The weighted average statistical uniform price was $14.65 per cwt, up $0.31 from last month but down $2.17 from last year. 2017 ANNUAL MAILBOX PRICES (USDA, FMMO & CDFA): For 2017, mailbox milk prices for selected reporting areas in Federal milk orders averaged $15.95 per cwt., $1.36 higher than the all-area average reported for 2016. The component tests of producer milk in 2017 averaged: butterfat, 3.82 percent; protein, 3.14 percent; and other solids, 5.75 percent. On an individual reporting area basis, mailbox prices increased for all Federal order milk reporting areas, and ranged from $18.96 in Florida to $15.24 in New Mexico. The Northwest States reporting area experienced the largest annual increase of $1.78 per cwt, while the New Mexico reporting area experienced the lowest annual increase of $0.81 per cwt.
WEEK OF APRIL 23 - 27, 2018 DAIRY MARKET NEWS VOLUME 85, REPORT 17
NORTHEAST Northeastern butter makers continue to clear cream into churns. Cream multiples are unchanged this week: 1.15 to 1.25 f.o.b. Some contacts report having adequate amounts of butter. However, churns continue to be active a few times a week to provide for regular contracts. Demand for butter is strong. Retail advertisements for print butter trended lower this week. Sales of bulk butter in domestic markets are 4 to 8 cents over the market of the CME Group, with various time periods and averages used. The butter market continues to hold its own as prices moved higher by midweek. According to the DMN National Retail Report-Dairy, April 20-26, 2018, the Northeast weighted average retail price for 1-pound butter was $2.96, 4 cents higher than the national price, but down 86 cents from last week’s regional price. Retail butter markets reported prices ranging $2.49-$3.49 in the Northeast. Prices for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0400 - +0.0800 This week, a cooperative export assistance program accepted requests for export assistance to sell 2.547 million pounds (1,156 metric tons) of butter.
CENTRAL
World markets are cause for conversation amongst butter producers and analysts in the Central U.S. One reason is a top butter exporting country, New Zealand, has experienced milk output declines due to dry weather. Another talking point is milkfat shortages continue worldwide. There is some uncertainty as to how, or if, U.S. producers will attempt to fill that breach. Additionally, cold storage figures have some contacts pointing out another sign of strength, as stocks were unchanged year over year. Undoubtedly, market bulls are aware of the news as CME prices have topped $2.30 since the middle of last week. April has provided the first consecutive runs of plus $2.30 CME daily cash prices since October 2017. Butter interest domestically is fair and meeting expectations. Cream is widely available, although multiples are in a tight range from 1.17 to 1.20 f.o.b. Bulk butter prices vary from flat market to 7 cents over the CME average. DMN National Retail Report-Dairy for April 20-26 noted the national weighted average advertised price for a 1 pound package of butter is $2.92, $0.31 below one week ago, but $0.01 higher than one year ago. The weighted average regional prices in the Midwest and South Central were $2.81 and $2.96, respectively. Prices for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Price Range - 80% Butterfat; $/LB Butterfat: .0000 - .0700
CONTINUED ON PAGE 2A
NATIONAL DAIRY PRODUCTS SALES REPORT U.S. AVERAGES AND TOTAL POUNDS
WEEK ENDING April 21, 2018
BUTTER CHEESE 40# BLOCKS
CHEESE BARRELS 38% MOISTURE
DRY WHEY NDM
2.2778 5,495,656
1.6025 11,937,040
1.5060 12,388,405
0.2587 6,725,662
0.7177 24,428,360
Further data and revisions may be found on the internet at: http://www.ams.usda.gov/rules-regulations/mmr/dmr
In the West, churns are actively running. Ice cream manufacturers are starting to take on a little more cream. However, cream supplies are lavish to meet all butter output obligations. Some processors are focusing more on print butter manufacturing and have reduced the volume of bulk butter they produce. Inventories of butter are building up, but remain manageable. Butter interest has picked up a little bit in the West. Demand from the international market has increased due to favorable U.S. prices. Bulk butter pricing in the West remained at 5 cents below to 6.5 cents above the market, based on the CME Group with various periods and averages used. The DMN National Retail Report–Dairy for the week of April 20-26 found that the U.S. weighted average advertised price of 1 pound butter is $2.92 down $.31 from last week. The U.S. weighted average price was $2.91 one year ago. The weighted average price in the Southwest is $3.09, with a price range of $2.49-$3.99. The weighted average price in the Northwest is $2.86, with a price range of $2.50-$2.99. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: -0.0500 - +0.0650 This week, a cooperative export assistance program accepted requests for 2.547 million pounds (1,156 metric tons) of butter. So far this year, the program has assisted member cooperatives who have contracts to sell 9.556 million pounds of butter (82% milkfat) in export markets. The NASS Cold Storage report noted U.S. butter stocks as of March 31, 2018, were 273.6 million pounds, up 3 percent from last month, and steady from last year. Butter stocks in all warehouses were 272.5 million pounds last year at this time.
Milk is ticking up in the Northeast, as spring flush has arrived and warmer temperatures are making their way into the area. Although increased milk volumes are clearing into manufacturing facilities, cheese processors are managing very well. Manufacturers’ supplies are fairly steady. Regular orders from restaurant and retail sectors are good. Cheddar 40 pound block spot activities are mixed this week, as some markets have been somewhat quiet. Cheese barrel spot trading is pretty steady and there are some reports of more available barrel spot loads than 40 pound block spot loads. The process cheese price shifted higher $0.0100. However, the wholesale price for cheddar and Muen-ster is unchanged. In addition, the Grade A Swiss price is unchanged. National Retail Report-Dairy, for April 20-26, 2018, noted the U.S. weighted average advertised price for 8 ounce cheese block was $2.22, up 16 cents from the previous week and up 3 cents from last year. The U.S. weighted average advertised price of 8 ounce cheese shreds was $2.27, a decrease of 1 cent from last week, but up 8 cents from a year ago. Northeast region’s weighted average advertised price for 8 ounce cheese blocks was $2.44, 22 cents above the U.S. average, with a re-gional price range of $1.50-$3.69. The average price for 8 oz. cheese shreds was $2.29, 2 cents above the national average, with prices rang-ing $1.50-$3.49. In the Southeast region, the average price for 8 oz. cheese blocks was $1.97, 25 cents below the average U.S. price, with a regional price range of $1.67-$2.50. The average price for 8 oz. shreds was $2.27, the same price as the U.S. average, with prices ranging $1.67-$2.50.
WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))
Cheddar 40 pound Block 2.0750-2.3600 Muenster 2.0600-2.4100 Process American 5 pound Sliced 1.6175-2.0975 Swiss 10-14 pound Cuts 3.0025-3.3250 Secondary Sourced Information: This week, a cooperative export assistance program accepted requests for export assistance to sell 881,849 pounds (400 metric tons) of cheese. COLD STORAGE: According to NASS, U.S. stocks of total natural cheese as of March 31, 2018 totaled 1.3 billion pounds, 1 per-cent more than the previous month, and up 5 percent from a year ago. Swiss cheese totaled 29.1 million pounds, 12 percent higher than a year ago, and up 4 percent from last month. In New England, stocks of American cheese totaled 65.9 million pounds, 2 percent lower than March 2017, but 1 percent higher than February 2018.
MIDWEST
Cheese demand reports are generally unchanged. Sales are reported as fair to slightly up week over week. Undoubtedly, as Midwestern weather is beginning to warm and spring snowstorms are recent histo-ry, cheesemakers are expecting sales to move northerly as grilling sea-son is getting its late launch. Although a number of cheese producers are starting to ease off the spot milk market, milk prices remain dis-counted, ranging from $2 to $4 under Class III. Some cheesemakers, who in recent weeks have opted to take in spot milk, are again suggest-ing that they have little to no short term needs. As in-house/contract milk supplies are sufficient and nonfat dry milk fortification ongoing, even discounted spot milk is superfluous for a number of Midwestern cheesemakers. The cheese market tone remains uncertain. The DMN National Retail Report-Dairy shows that April 20-26 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.36, 9 cents above the national average. Midwest prices range from
$1.99-$3.33. One year ago, the national price was $2.19. For 8 ounce blocks, the Midwest average price is $2.18, 4 cents below the national average price. Midwest ads are priced from $1.50-$2.99. Last year, the national price was $2.19. Midwestern wholesale prices are up $.0100 for process, but unchanged for Swiss Cuts and all other types.
Blue 5 pounds 2.2500-3.2375 Cheddar 40 pound Block 1.7100-2.1050 Monterey Jack 10 pounds 1.9575-2.1625 Mozzarella 5-6 pounds 1.7825-2.7225 Muenster 5 pounds 1.9825-2.4075 Process American 5 pound Loaf 1.5725-1.9325 Swiss 6-9 pound Cuts 2.5200-2.6375
Secondary Sourced Information: According to the NASS Cold Storage report, U.S. stocks of cheese (total natural) at the end of March 2018 were 1.328 billion pounds, 1 percent above February 2018 and up 5 percent from March 2017. American stocks were unchanged, other natural stocks were 14 percent more, and Swiss stocks were 12 percent higher than last year. In the East North Central region (Wisconsin, Illinois, Michigan, Indiana and Ohio), American cheese stocks at the end of March 2018 were 2 per-cent higher than last year and up 1 percent from last month. Other cheese stocks in the East North Central region were 19 percent higher than March 2017 and 2 percent higher than last month. In the West North Central region (Minnesota, Iowa, Missouri, Kansas, Nebraska, South Dakota and North Dakota), American cheese stocks at the end of March 2018 were 9 percent lower than last year, but 4 percent higher than last month. Other cheese stocks in the West North Central region were 3 percent higher than March 2017 and 3 percent above February 2018. In CME Group trading Wednesday, barrels closed at $1.4825, compared to $1.4800 last Wednesday. Blocks closed at $1.6100, com-pared to $1.6300 last Wednesday.
WEST
Western cheese makers report there is plenty of milk flowing through cheese vats. General interest from international buyers, looking for favorable price spreads, has aided movement of U.S. cheese into inter-national markets. Strong demand for blocks and solid demand for bar-rels have helped support market prices. However, industry contacts say inventories remain a little long, especially for barrels. Stocks are espe-cially heavy for other natural cheese varieties, mozzarella and hard Italian cheeses. Manufacturers are seemingly holding fast to the ca-thexis that improving spring weather will bring on the grilling season and help generate a pull for cheese, taking some pressure off the whole cheese complex.The DMN National Retail Report-Dairy for the week of April 20-26 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.27, down $.01 from last week. Packs average $2.54 in the Southwest and $2.49 in the Northwest. One year ago, the national price was $2.19. For 8 ounce blocks, the U.S. price is $2.22, up $.16 from last week. Blocks average $2.37 in the Southwest and $2.23 in the Northwest. One year ago, the national price was $2.19. In the West, wholesale prices were up $.0100 for process, and unchanged for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are unchanged from the previous week.
WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))
Cheddar 10 pound Cuts 1.9225-2.1425 Cheddar 40 pound Block 1.7425-2.1875 Monterey Jack 10 pounds 1.9325-2.0925 Process American 5 pound Loaf 1.5600-1.8175 Swiss 6-9 pound Cuts 2.5800-3.0100 Secondary Sourced Information: This week, a cooperative export assistance program accepted requests for export assistance on contracts to sell 881,849 pounds (400 metric tons) of cheese. So far this year, the program has assisted member co-operatives who have contracts to sell 32.730 million pounds of Ameri-can-type cheeses in export markets. According to the NASS Cold Stor-age report, U.S. stocks of cheese (total natural) at the end of March 2018 were 1.33 billion pounds, up 1 percent from February 2018 hold-ings, and up 5 percent from March 2017. American stocks were un-changed, Swiss stocks were up 12 percent, and other natural stocks were up 14 percent compared to last year. Total natural cheese stocks and other natural cheese stocks are at historic high levels for the month of March. In the Mountain Region, American cheese stocks were 3 percent more than one year earlier, but 1 percent less than one month ago. Pacific Region American cheese stocks were 2 percent more than one year earlier, and 1 percent more than the previous month. Also in the Pacific Region, other natural cheese stocks were 20 percent above a year ago, but 7 percent less than a month ago. In CME Group trading Wednesday, barrels closed at $1.4825, up $.0025 from a week ago and blocks closed at $1.6100, down $.0200.
FOREIGN TYPE
Cheese demand from outside and inside the European Union is active. In Germany, the demand for sliced cheese continues to be upward trending. A reduction in cheese prices was noticeable at the consumer level, triggering stronger retail orders. Due to limited cheese availabil-ity, not all spot demand can be fulfilled. Some orders are postponed to later dates, while the quantities delivered for other orders are reduced based on the supplies on hand. Cheese production is mostly tied to con-tractual obligations as producers focus on fulfilling those orders first. In current negotiations, sellers are demanding higher prices. In the United States, the prices for all cheese types are unchanged from the previous week.
WHOLESALE SELLING PRICES: FOB DISTRIBUTORS DOCK DOLLARS PER POUND (1000 - 5000 POUNDS, MIXED LOTS)
Prices represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound.
NONFAT DRY MILK - CENTRAL AND EAST
CENTRAL: Pr ices of low/medium heat nonfat dry milk (NDM) shifted up in all aspects, with the exception of the bottom of the range, which maintained its current value. NDM spot market activity was very active. Spot loads, in some instances, are becoming more difficult to find. There is some suggestion that increasing export activity is leading to the higher price points. A number of buyers have reported they are content to wait out this current price uptrend, as their stocks are currently plentiful. High heat NDM inventories remain limited and production remains based on contracts. High heat prices shifted up on the bottom of the range. The NDM market tone is uncertain. EAST: Low/medium heat nonfat dry milk (NDM) pr ices in the East region continue to show firmness. At this time, price strength is possibly the result of a domestic market push as a few buyers specifically seek the procurement of new NDM production. Good domestic and export market demand supports the firm undertone as some manufacturers hold inventories with confidence. With the progression of the spring flush, low/medium heat NDM drying rates are higher at some processing facilities. For now, there is no indication of burdensome milk supplies in the East. Stocks of low/medium heat NDM are adequate to heavy, depending on the manufacturer and age of the powder. High heat NDM prices are up while available stocks are limited. Regular buyers are able to find loads to meet their processing needs. Prices for: Eastern and Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Nonfat Dry Milk Price Range - Low & Medium Heat; $/LB: .6800 - .8500 Mostly Range - Low & Medium Heat; $/LB: .7300 - .7850 Prices for: Eastern and Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Nonfat Dry Milk Price Range - High Heat; $/LB: .8500 - .9800
NONFAT DRY MILK - WEST F.O.B. spot prices for western low/medium heat nonfat dry milk are higher on both ends of the range and the mostly price series. The market tone shows some ostensible signs of strength. The change in the prices of nonfat dry milk is astonishing to many industry players. According to them, the supplies of nonfat dry milk are overflowing and production is very active; therefore, prices should not be rising that much. Others explain the upsurge in prices by the fact that higher international prices are boosting U.S. export demand. In addition, they stated that certain manufacturers are holding on to some stocks of low/medium heat nonfat dry milk for future sales. As the result, inventories seem lower and prices are increasing. Overall, low/medium heat nonfat dry milk production is lively, while inventories are plentiful. Domestic and international sales are strong. High heat nonfat dry milk prices are steady on the range. Output is in line with contractual requirements. Nonetheless, supplies available for usage in the spot market are limited, but enough to fulfill all requests. Overall, the market undertone is quiet. Prices for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Nonfat Dry Milk Price Range - Low & Medium Heat; $/LB: .7300 - .8500 Mostly Range - Low & Medium Heat; $/LB: .7300 - .8250 Prices for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Nonfat Dry Milk Price Range - High Heat; $/LB: .9000 - 1.0000
CALIFORNIA MANUFACTURING PLANTS - NONFAT DRY MILK
WEEK ENDING PRICE TOTAL SALES April 20 $.7042 17,495,461 April 13 $.7033 15,720,588 Prices are weighted averages for Extra Grade and Grade A Nonfat Dry Milk, f.o.b. California manufacturing plants. Prices for both periods were influenced by effects of long-term contract sales. Compiled by Dairy Marketing Branch, California Department of Food and Agriculture.
DRY BUTTERMILK - CENTRAL AND EAST CENTRAL: Pr ices for Central dry buttermilk slipped on the bottom of the range while holding steady at the top. Spot trading was somewhat active. Buttermilk drying is limited as condensed skim remains readily accessible, but some plants have suggested they are trying to fit more condensed buttermilk into the dryers. As butterfat values increase and nonfat dry milk market prices have shot up, contacts are viewing the buttermilk powder market tone through a bullish lens. EAST: Pr ices for dry buttermilk are mixed on limited trading. Inventories are adequate for regular customers. Manufacturers are managing the volume of their holdings for near term contract customers prior to offering anything more than individual loads in the spot market. Dry buttermilk production is somewhat steady with fairly active churning taking place, but additional loads of cream moving into Class II processing are cutting into churning schedules and consequently dry buttermilk production. Some condensed buttermilk is bypassing the dryers and being sold directly to ice cream interests. Prices for: Eastern and Central U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk Price Range ; $/LB: .6700 - .7900
DRY BUTTERMILK - WEST
Western f.o.b. spot prices for dry buttermilk are steady on the range, but have increased at the bottom of the mostly price series. The market tone has an air of strength in that adequate supplies and steady demand characterize it. Overall, interest in dry buttermilk is increasing. With the summer around the corner, ice cream processors are taking on more loads of dry buttermilk. Some industry participants believe that inventories have tightened up a bit. Dry buttermilk production is active as more butter clears through the churns. Prices for: Western U.S., All First Sales, F.O.B., Conventional, and Edible Buttermilk Price Range ; $/LB: .6800 - .7800 Mostly Range - ; $/LB: .7000 - .7500
DRY WHOLE MILK - NATIONAL
National dry whole milk f.o.b. spot prices are unchanged on very light spot trading. Condensed whole milk drying schedules have been curtailed in several balancing plants across the country, as the priority of production is to clear heavy condensed skim volumes into NDM/SMP.
Prices represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound.
-CONTINUED FROM PAGE 5- Therefore, as noted by several industry participants, dry whole milk availability is getting tight with fair/moderated requests from buyers, but limited offers from manufacturers. In this way, the dry whole milk market is getting firmer with balanced inventories to cover contractual needs, but less than sufficient supplies to meet immediate spot needs.
Prices for: U.S., All First Sales, F.O.B., Conventional, and Edible Dry Whole Milk Price Range - 26% Butterfat; $/LB: 1.4400 - 1.5500
WHEY, WPC 34%, LACTOSE & CASEIN Prices represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound.
DRY WHEY - CENTRAL Central dry whey prices moved up slightly on both ends of the range and the mostly price series. There has been a shift in recent weeks, and a number of contacts have reported that whey seems firmer. Spot market activity was noticeably more active. Export activity is assuredly putting upward pressure on market prices. Domestic demand is fairly quiet. Whey inventories are currently available, although some cheese makers in the Midwest have scaled back production in order to manage growing cheese and whey inventories. Feed whey prices shifted up on a relatively active spot market. Prices for: Central U.S., All First Sales, F.O.B., Conventional, and Edible Dry Whey Price Range - Animal Feed; $/LB: .1800 - .2300 Prices for: Central U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey Price Range - Non-Hygroscopic; $/LB: .2250 - .3500 Mostly Range - Non-Hygroscopic; $/LB: .2250 - .2750
DRY WHEY - NORTHEAST
Whey powder prices in the Northeastern region are steady to a bit higher this week based on many slight upticks in pricing indices. Many traders and end users are purchasing regular spot loads. However, some manufacturers are not able to offer as many spot loads as some market participants are willing to purchase. Dry whey production correlates with strong cheese processing. Supplies are somewhat mixed as there are reports of lower stocks in the East currently. Cheese manufacturers’ report interest in routine contract loads is steady. General market conditions are steady to showing firmness. Prices for: Eastern U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey Price Range - Non-Hygroscopic; $/LB: .2500 - .2925
DRY WHEY - WEST Western dry whey prices moved higher at the top of the price range and both ends of the mostly price series. Industry contacts say dry whey stocks have tightened over the last few weeks. Buyer interest, especially in Southeast Asia, has been solid. Dry whey production is mixed as manufacturers report varying production strategies. In some cases, processors are actively trying to keep up with whey coming from heavy milk volumes and active cheese production. In other cases, processors are adjusting their focus within the whey protein complex to meet commitments to end users. The current market tone is stable. Prices for: Western U.S., All First Sales, F.O.B., Extra Grade & Grade A, Conventional, and Edible Dry Whey Price Range - Non-Hygroscopic; $/LB: .2300 - .3300 Mostly Range - Non-Hygroscopic; $/LB: .2500 - .3100
WHEY PROTEIN CONCENTRATE 34% CENTRAL AND WEST The price range for whey protein concentrate 34% is unchanged. However, the mostly price series narrowed. Aside from brand-driven spot sales, many of the transaction prices are congregated into a smaller spread. Manufacturers note an uptick in buyer interest. However, many suspect the renewed attention has more to do with the run up in nonfat dry milk markets as opposed to fundamental strength in the whey protein complex. Industry contacts report weakness in the WPC80% and WPI markets has prompted a few manufacturers to focus on WPC34% or dry whey production in lieu of the higher protein concentrations. Inventories are adequate for most WPC34%, but tight for those favored brands that continue to get a slew of buyer inquiries.
Prices for: Central and Western U.S., All First Sales, F.O.B., Extra Grade, Conventional, and Edible Whey Protein Concentrate Price Range - 34% Protein; $/LB: .5900 - .9400 Mostly Range - 34% Protein; $/LB: .6800 - .7500
LACTOSE - CENTRAL AND WEST
Lactose prices moved up at the bottom of both the range and mostly prices series. A number of manufacturers report inventories are pretty tight. Aggressive marketing in Q4 of 2017 and Q1 of 2018 has helped clean out some excess lactose stocks. A few processors are now working hard to fill commitments with fresh production. In addition, manufacturers say some buyers are seeking to lock in Q3/Q4 agreements, especially for favorite brands and lactose that meets stringent buyer requirements. Lactose production is generally steady. While lactose is moving well through contracts, and many industry contacts suggest the market tone is slowly firming, some in the industry are also hesitant to get too excited. They view segments in the market to be quieter than they would prefer. Prices for: Central and Western U.S., Spot Sales And Up 3 Month Contracts, F.O.B., Conventional, and Edible Lactose Price Range - Non Pharmaceutical; $/LB: .1900 - .3900 Mostly Range - Non Pharmaceutical; $/LB: .2200 - .2600
CASEIN - NATIONAL Rennet casein prices are slightly higher at the bottom of the price range, but unchanged at the top. Acid casein prices are unchanged. There is little or perhaps no casein production currently occurring in Oceania. Accounts vary. Available milk is destined for other dairy products with contract commitments as seasonal milk production declines. European casein production is contract focused. Markets there are quiet, with most buyers not in immediate need to replenish supplies beyond previous contracting. Prices for: Spot Sales And Up 3 Month Contracts, Free on Board - Warehouse, Non-Restricted, All Mesh Sizes, Conventional, and Edible Casein Acid; Price Range - $/LB: 2.9900-3.2400 Rennet; Price Range - $/LB: 2.6500-2.7600
U.S. Dairy Cow Slaughter (1000 head) under Federal Inspection
2018 WEEKLY 2018 2017 WEEKLY 2017 WEEK ENDING DAIRY COWS CUMULATIVE DAIRY COWS DAIRY COWS CUMULATIVE DAIRY COWS 04/07/2018 61.0 898.8 57.5 855.4 WEBSITE: http://www.ams.usda.gov/mnreports/sj_ls714.txt SOURCE: The slaughter data are gathered and tabulated in a cooperative effort by the Agricultural Marketing Service, The Food Safety and Inspection Service, and the National Agricultural Statistics Service, all of USDA.
CLASS III MILK PRICES (3.5% Butterfat)
YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2013 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95 2014 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82 2015 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 2016 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40 2017 16.77 16.88 15.81 15.22 15.57 16.44 15.45 16.57 16.36 16.69 16.88 15.44
CLASS IV MILK PRCES (3.5% Butterfat)
YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2013 17.63 17.75 17.75 18.10 18.89 18.88 18.90 19.07 19.43 20.17 20.52 21.54 2014 22.29 23.46 23.66 23.34 22.65 23.13 23.78 23.89 22.58 21.35 18.21 16.70 2015 13.23 13.82 13.80 13.51 13.91 13.90 13.15 12.90 15.08 16.43 16.89 15.52 2016 13.31 13.49 12.74 12.68 13.09 13.77 14.84 14.65 14.25 13.66 13.76 14.97 2017 16.19 15.59 14.32 14.01 14.49 15.89 16.60 16.61 15.86 14.85 13.99 13.51
FEDERAL MILK ORDER CLASS PRICES FOR 2018 (3.5% Butterfat)
CLASS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC I 1/ 15.44 14.25 13.36 14.10 14.44 II 14.11 13.44 13.88 III 14.00 13.40 14.22 IV 13.13 12.87 13.04
1/ S3p03ific order differentials to be added to this base price can be found by going to: www.ams.usda.gov/DairyMarketingStatistics; then select “Prices”; and then select “Principal Pricing Points.”
INTERNATIONAL DAIRY MARKET NEWS - EUROPE Information gathered April 16 - 27, 2018
Prices are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds.
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WESTERN OVERVIEW: In Europe and par ticular ly Germany, milk production is still high, but the frosty period in February and March lowered the growth. In total there is less milk than dairy pro-cessors had planned. This keeps Western European dairy product availability in tighter supply than desirable. That leads to firmer price trends in all markets, but especially in butter and cream. Dairy produc-ers benefit because the firmer trend in the product markets stabilize the producer prices. Later on fat prices possibly bring them up again. Milk production in the EU for the twelve months March 2017-February 2018, compared with one year earlier, increased 2.9 percent according to Eurostat. Production volumes and percent changes in top producing EU countries follows: Germany, 32.2 million MT, +1.6 percent; France, 24.7 million MT, +2.0 percent; U.K., 15.2 million MT, +4.6 percent; Netherlands, 14.3 million MT, -0.1 percent; and Italy, 12.1 million MT, +4.8 percent. January-February 2018 EU milk production was up 3.4 percent over one year earlier according to CLAL. Cheese production in the EU for the twelve months March 2017-February 2018, compared with one year earlier, increased 2.7 percent according to Eurostat. Percent changes in top producing EU countries follows: Germany,+2.0 percent; France, -0.3 percent; Italy, +5.3 per-cent; Netherlands, -1.6 percent; and Poland, +5.0 percent. January-February 2018 EU cheese production was up 3.4 percent over one year earlier according to CLAL. BUTTER/BUTTEROIL: Butter pr ices in Western Europe strengthened, remaining higher than strengthening prices in Oceania. Western European prices are the highest this year. The highest prices are noted in Germany with lower prices in France, Netherlands, Italy and Slovak Republic. Butteroil prices are slightly weaker. Demand for packaged butter has firmed in Western Europe, leading to increased ordering. With milk supplies seasonally increasing again, this helps with milk availability for churning. Recent block butter de-mand has lifted prices to fill unexpected “urgent” short term needs. That led to a hectic week of placing and filling orders. That activity has now passed and block butter markets are in a more orderly situa-tion, but with prices still up from the recent heavy demand period. Butter production in the EU for the twelve months March 2017-February 2018, compared with one year earlier, increased 0.6 percent according to Eurostat. Production volumes and percent changes in top producing EU countries are shown on the following graph.
Data: Eurostat Graph: Dairy Market News Western Europe, 82% Butterfat, Free on Board - Port Butter Price Range - $/MT: 6,225 - 7,175 Western Europe, 99% Butterfat, Free on Board - Port Butteroil Price Range - $/MT: 6,500 - 6,825
SKIM MILK POWDER (SMP): Skim milk powder pr ices in West-ern Europe are higher. Prices are highest in Germany, which also rec-orded some sales near the lower end of the price range. Netherlands and France clustered below the highest German prices. A factor in pricing is uneven availability by various manufacturers which can move prices higher in situations where a preferred source is a bit tight on availability. This may occur even when some other manufacturers, not preferred sources for certain customers, have SMP available. Trading for current production has been very heavy this period. This demand is from internal EU customers, as well as from outside the EU. Ordering for deliveries in the third quarter of the year has also noticeably picked up. This convergence of buying interest has helped to create price strength. The strength and buying interest is expected to continue in the near term at least. SMP production in the EU for the twelve months March 2017-February 2018, compared with one year earlier, increased 0.5 percent according to Eurostat. Production volumes and percent changes in top producing EU countries are shown on the following graph.
Data: Eurostat Graph: Dairy Market News Prices for: Europe, All First Sales, Free on Board - Port, Conven-tional, and Edible Skim Milk Powder Price Range - 1.25% Butterfat; $/MT: 1,650 - 1,775 SWEET WHEY POWEDER: Whey pr ices in Europe are very slightly weaker. The price movement is not considered significant, more of a nuanced fluctuation. In fact, the weakness when prices are quoted in dollars is more a reflection of currency valuation than euro pricing. Within Europe, customers working with euros see the whey market as almost stable. Whey availability overall is decent. Among individual sources there is some unevenness. This may lead to some customers checking around to secure supplies, but most do not have to do much checking. Prices for: Western Europe, All First Sales, Free on Board - Port, Conventional, and Edible Dry Whey Price Range - Non-Hygroscopic; $/MT: 900 - 950 WHOLE MILK POWDER: Whole milk powder pr ices are slightly higher in Western Europe. Prices are very similar to the price range in Oceania. This market is quite stable. Recent buying interest has not set any records for orders. However, interest from buyers has recently picked up slightly. That, and the increasing value of dairy fats has helped nudge WMP prices. Buying interest from internal European customers and export customers is at expected levels. Manufacturers expect this market and prices to remain generally near current levels for the near
INTERNATIONAL DAIRY MARKET NEWS - EUROPE Information gathered April 16 - 27, 2018
Prices are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds.
CONTINUED FROM PAGE 8 term. Buyers with a need to restock are not believed to be holding back due to expectations of price movements ahead. WMP production in the EU for the twelve months March 2017-February 2018, compared with one year earlier, increased 4.1 percent according to Eurostat. Production volumes and percent changes in top producing EU countries are shown on the following graph. Data: Eurostat Graph: Dairy Market News
Prices for: Europe, All First Sales, Free on Board - Port, Conven-tional, and Edible Whole Milk Powder Price Range - 26% Butterfat; $/MT: 3,250 - 3,350 EASTERN OVERVIEW: Milk production in Poland for the twelve months March 2017-February 2018, compared with one year earlier, increased 4.8 percent according to Eurostat. January-February 2018 milk production was up 3.3 percent over one year earlier accord-ing to CLAL.
INTERNATIONAL DAIRY MARKET NEWS - OCEANIA Information gathered April 16 - 27, 2018
Prices are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds.
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AUSTRALIA: In Southern Australia the cur rent season continues to be hot and dry. Many dairy producers have been hoping for an au-tumn break which has not yet developed. This has led to more late sea-son feed purchases by some producers. Carryover hay stocks are facing heavy demand, leading to higher sales of new season hay than had been expected. It has also led to a greater need to irrigate. As producers make plans for the coming season, these added cost factors are weighing on decisions as to whether or not to increase herd sizes. In northern Australia recent rains have made pasturing more available, even with hot weather. While hay is generally available now, there are concerns about tight supplies later as the season winds toward an end. The ranked value (AUD) of various top dairy product exports from Australia this season, July 2017-February 2018, according to Dairy Australia, is: Whole milk powder, 545.7 million AUD; skim milk pow-der, 303.1 million AUD; cheddar, 196.4 million AUD; and butter, 51.7 million AUD. 1 Australian dollar converts to $.76 U.S. on April 26, 2018. NEW ZEALAND: New Zealand dairy processors are pleased by stronger commodity prices. Continuing strength is expected in coming weeks, perhaps months. New Zealand does not have much dairy prod-uct left to sell this season. What is available usually exists in a world of strong demand. While there has been some comment about recent stormy weather, the worst of it has been around the upper North island where there is not much dairying in the overall scheme of New Zea-land. March 2018 New Zealand milk production was 1.867 million MT, down 1.5 percent from March 2017 milk production, 1.895 million MT, according to DCANZ. March 2018 milk solids, 174.6 million kg, are down 2.2 percent from March 2017, 178.5 million kg. Secondary Sourced Information: At the April 17 GDT event #210, all contracts prices ranged from 0.9 percent higher to 14.8 percent higher than the prior event across cate-gories. The all contracts price averages (US$ per MT) and percent changes from the previous averages are: anhydrous milk fat, $6,120, +5.3 percent; butter, $5,654, +2.9 percent; buttermilk powder n.a.; cheddar cheese, $3,855, +4.6 percent; lactose, $687, +14.8 percent; rennet casein, $5,792, +3.1 percent; skim milk powder, $1,913, +3.6 percent; and whole milk powder, $3,311, +0.9 percent. BUTTER: Butter pr ices are stronger in Oceania. The strong global demand for dairy fats is helping keep Oceania butter prices firming. With New Zealand in particular the largest butter exporter among ma-jor producing countries, and with New Zealand in the declining period of seasonal milk production, butter price strength in Oceania is widely expected during coming months. The value (AUD) of butter exports from Australia this season, July 2017-February 2018, decreased 3.3 percent from one year earlier ac-cording to Dairy Australia. However, the volumes this season through February compared with one year earlier decreased 36.2 percent. Oceania, 82% Butterfat, Free on Board - Port Butter Price Range - $/MT: 5,625 - 5,700 Secondary Sourced Information: At GDT Event 210 on April 17, the butter all contracts price, $5,654, increased 2.9 percent. The May contract, $5,660, increased 2.4 percent. SKIM MILK POWDER (SMP): Pr ices for skim milk powder in Oceania are slightly higher. Demand is strong for current production. With lower milk production as the season gets closer to ending, sup-plies are tighter. Another factor is much of current production is com-mitted which makes available spot supplies costlier to purchase. Even with prices above those in Europe, and recognizing the added factors of intervention stocks, geography, customer preferences and low available supplies, Oceania SMP keeps moving to customers.
The value (AUD) of SMP exports from Australia this season, July 2017-February 2018, decreased 3.2 percent from one year earlier ac-cording to Dairy Australia. However, the volumes this season through February compared with one year earlier decreased 0.5 percent. Prices for: Oceania, All First Sales, Free on Board - Port, Conventional, and Edible Skim Milk Powder Price Range - 1.25% Butterfat; $/MT: 1,900 - 2,000 Secondary Sourced Information: At GDT Event 210 on April 17, the SMP all contracts price, $1,913, increased 3.6 percent. The May contract, $1,985, increased 3.9 percent. CHEDDAR CHEESE: Oceania cheddar pr ices firmed. This con-tinues recent price strength for cheddar. Milk production is decreasing as time moves later into the season. The need to keep milk flowing to WMP and butter to meet contract commitments will keep cheddar out-put at a level that is expected to continue price strength. The value (AUD) of cheddar exports from Australia this season, July 2017-February 2018, increased 11.6 percent from one year earlier according to Dairy Australia. However, the volumes this season through February compared with one year earlier are nearly unchanged, increasing 0.1 percent. Other cheese exports this season through Febru-ary increased in value 15.5 percent. Other cheese volumes increased 3.4 percent. Prices for: Oceania Cheese, Cheddar, Free on Board - Port, Price Range - $/MT: 3,775 - 3,925 Secondary Sourced Information: At GDT Event 210 on April 17, the cheddar all contracts price, $3,855, increased 4.6 percent. The May contract, $3,905, increased 2.0 percent.
WHOLE MILK POWER (WMP): Whole milk powder prices in Oce-ania are narrowly higher. Little spot market activity was noted, as much of current production is already committed. Continuing firmness is expected in the coming weeks. Contracting is underway for later in 2018, with many buyers being very interested in locking in commitments from pre-ferred sources. The value (AUD) of WMP exports from Australia this season, July 2017-February 2018, increased 20.9 percent from one year earlier accord-ing to Dairy Australia. However, the volumes this season through Febru-ary compared with one year earlier, decreased 5.8 percent. Prices for: Oceania, All First Sales, Free on Board - Port, Conventional, and Edible Whole Milk Powder Price Range - 26% Butterfat; $/MT: 3,275 - 3,375
Secondary Sourced Information: At GDT Event 210 on April 17, the WMP all contracts price, $3,311, increased 0.9 percent. The May contract, $3,296, increased 0.6 percent.
Exchange rates for selected foreign currencies: April 23, 2018 .0494 Argentina Peso .0150 India Rupee .7604 Australian Dollar .0092 Japan yen .2897 Brazil Real .0528 Mexican Peso .7782 Canadian Dollar .7144 New Zealand Dollar .0017 Chile Peso .2906 Poland Zloty 1.2209 Euro .0354 Uruguay Peso Conversion example: To compare the value of 1 US Dollar to Mexican Pesos: (1/.0528) = 18.9394 Mexican Pesos. Source: "Wall Street Journal"
Information gathered April 16 - 27, 2018 Prices are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds.
SOUTH AMERICA OVERVIEW: Dur ing the last two weeks, some showers in ARGENTINA and URUGUAY contributed slightly to alleviate some effects of the current drought, increasing soil mois-ture in lands on pastures and grain crops. However, according to some industry contacts, the actual conditions of the forage, soybeans and corn crops are mostly poor. Hence, this can increase imports of con-centrates and, therefore, the operating costs of the dairy farmers. Nev-ertheless, farm milk production continues growing driven by comforta-ble autumn temperatures. Meanwhile, after several months of specula-tion, a national Argentine company officially bought the largest dairy cooperative in this country, thus reducing some uncertainties in the market. Contrary to Argentina and Uruguay, the effects of the drought in BRAZIL have been slight. Farm milk production has been re-duced in part because some small/medium dairy farmers are closing their operations, mainly due to lower farm prices and higher operating costs. As a result, milk/cream supply is becoming less available, prompting the competition among processors, especially between cheese makers and bottled/UHT milk manufacturers. Uncertainty is present among most dairy processors due to the upcoming presidential elections. However, as noted by some contacts, the interest for dairy products from retailers and food service is robust and steadily improv-ing. In CHILE, milk volumes are less than adequate to cover all pro-cessing needs. Consequently, dairy imports mainly from the United States are improving and expected to grow at least for the rest of Q2. It is important to mention that imports from the U.S. to Chile do not pay tariff due to the free trade agreements of the Trans-Pacific Partnership (TPP). SKIM MILK POWEDER (SMP): In the Southern Cone region, free on board export prices for skim milk powder (SMP) shifted slight-ly up, remaining well above Europe, Oceania, and some offshore auc-tions. With the main purpose to mitigate the regional shortage of milk-fat supply, most processors are increasing SMP production. Neverthe-less, SMP inventories vary from plant to plant. Prices for: South America, All First Sales, Free on Board - Port, Conventional, and Edible Skim Milk Powder Price Range - 1.25% Butterfat; $/MT: 2,225 - 2,525 Secondary Sourced Information: At the GDT Event 210 on April 17, skim milk powder (SMP) prices across all contract periods averaged $1,913 per metric ton, up 3.6 per-cent from the last event. WHOLE MILK POWDER (WMP): Milk fat supply remains sea-sonally short across South America while its demand remains strong. Therefore, in order to increase cream volumes, several manufacturers are curtailing drying schedules for condensed whole milk. Consequent-ly, WMP inventories are irregular in some processing facilities. This is boosting regional WMP values. During the past two weeks, in the Southern Cone of South America, WMP free on board export prices shifted higher, in line with recent WMP upwards pricing trends at the GDT. The regional WMP market undertone is firmer with robust de-mands from many food processors, cheese makers, and confectioners. Prices for: South America, All First Sales, Free on Board - Port, Conventional, and Edible Whole Milk Powder Price Range - 26% Butterfat; $/MT: 3,150 - 3,400 Secondary Sourced Information: At the GDT Event 210 on April 17, whole milk powder (WMP) prices across all contract periods averaged $3,311 per metric ton, up 0.9 per-cent from the last event.
March Milk Production Milk production in the 23 major States during March totaled 17.8 billion pounds, up 1.5 percent from March 2017. February revised production at 15.9 billion pounds, was up 1.8 percent from February 2017. The February revision represented a decrease of 12 million pounds or 0.1 percent from last month's preliminary production estimate. Production per cow in the 23 major States averaged 2,038 pounds for March, 22 pounds above March 2017. This is the highest production per cow for the month of March since the 23 State series began in 2003. The number of milk cows on farms in the 23 major States was 8.74 million head, 29,000 head more than March 2017, but 2,000 head less than February 2018. Milk production in the United States during the January - March quarter totaled 54.4 billion pounds, up 1.5 percent from the January - March quarter last year. The average number of milk cows in the United States during the quarter was 9.41 million head, 9,000 head more than the October - December quarter, and 38,000 head more than the same period last year.
State
Milk Cows 1, 2 Milk Production 1, 3 March Jan – Mar March Jan - Mar
1 Preliminary. 2 Includes dry cows, excludes heifers not yet fresh. 3 Excludes milk sucked by calves. 4 Includes states for which individual monthly estimates are not available. 5 Milk cows will not add due to rounding. Source: U.S. Department of Agriculture. National Agricultural Statistics Service. Milk Production, (April 2018).
MONTHLY COLD STORAGE REPORT – TOTAL U.S. STOCKS NOTE: Data for this report is collected from public, private and semiprivate warehouses, apple houses, and meat packing plants where food products are generally stored for 30 days or more. Commodities in space owned or leased and operated by the armed services are not reported. Food stocks held under bond are included in the storage data. All stocks in thousand pounds except where otherwise indicated
U.S. H O L D I N G S O F D A I R Y P R O D U C T S
M A R C H S T O R A G E H O L D I N G S B Y R E G I O N
REGION Natural American Cheese Butter * Other Natural Cheese 2016 2017 2018 2016 2017 2018 2016 2017 2018 New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific
TOTAL 725,837 772,702 769,262 243,134 272,500 273,552 440,928 463,489 529,287 *Regional breakdowns are not reported to avoid possible disclosure of individual operations.
April 2018 Highlights: U.S. simple average prices are: $3.28 per gallon for conventional whole milk, $3.20 per gallon for conventional reduced fat 2% milk, $4.12 per half gallon organic whole milk, and, $4.12 per half gallon organic reduced fat 2% milk.
Retail Prices for Conventional Whole Milk, Average of Three Outlets, Selected Cities, by Months, 2018 1
City and State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2
(dollars per gallon)
Atlanta, GA 3.76 3.76 3.76 3.76 3.76 Baltimore, MD 4.11 4.11 3.70 3.70 3.91 Boston, MA 3.22 3.22 3.22 3.22 3.22 Chicago, IL 3.99 3.99 3.99 3.99 3.99 Cincinnati, OH 2.09 2.09 2.26 2.36 2.20 Cleveland, OH 3.12 3.26 3.12 3.26 3.19 Dallas, TX 2.85 2.82 2.58 2.58 2.71 Denver, CO 3.16 3.16 3.02 3.12 3.12 Detroit, MI 2.59 2.52 2.46 2.36 2.48 New York, NY 4.01 3.83 3.94 3.93 3.93 Hartford, CT 3.47 3.61 3.88 3.65 3.65 Houston, TX 2.52 2.55 2.88 2.44 2.60 Indianapolis, IN 2.25 2.25 2.22 2.19 2.23 Kansas City, MO 4.20 4.19 4.10 4.10 4.15 Louisville, KY 1.82 1.89 1.89 1.82 1.86 Miami, FL 4.00 4.00 3.90 3.90 3.95 Milwaukee, WI 3.92 3.89 3.89 3.82 3.88 Minneapolis, MN 4.16 4.16 4.16 4.16 4.16 New Orleans, LA 3.83 3.77 3.79 3.81 3.80 Oklahoma City, OK 3.53 3.71 3.22 3.52 3.50 Philadelphia, PA 3.86 3.86 3.70 3.73 3.79 Phoenix, AZ 2.82 2.82 2.82 2.82 2.82 Pittsburgh, PA 3.69 3.58 3.59 3.61 3.62 Portland, OR 3.39 3.46 3.42 3.42 3.42 Seattle, WA 3.26 3.26 3.26 3.26 3.26 St. Louis, MO 3.26 3.26 3.26 3.26 3.26 Syracuse, NY 2.94 2.94 2.94 2.84 2.92 Washington, DC 3.82 3.82 3.82 3.82 3.82 Wichita, KS 2.55 2.65 2.49 2.56 2.56 Simple Average 3.32 3.33 3.29 3.28 3.30
1 As collected by Federal milk order market administrators based on a survey conducted one day between the 1st and 10th of each month (excluding Fridays and weekends) in selected cities or metropolitan areas. One outlet of the largest and second largest food store chains and the largest convenience store chain are surveyed. The price represents the most common brand in nonreturnable containers. 2 Simple average of monthly prices.
Retail Prices for Conventional Reduced Fat (2%) Milk, Average of Three Outlets, Selected Cities, by Months, 2018 1
City and State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2
(dollars per gallon) Atlanta, GA 3.76 3.76 3.76 3.76 3.76 Baltimore, MD 4.11 4.11 3.46 3.46 3.79 Boston, MA 3.15 3.15 3.15 3.14 3.15 Chicago, IL 3.89 3.89 3.89 3.89 3.89 Cincinnati, OH 2.09 2.09 2.19 2.36 2.18 Cleveland, OH 3.12 3.26 3.12 3.26 3.19 Dallas, TX 2.85 2.82 2.58 2.58 2.71 Denver, CO 3.16 3.16 3.02 3.12 3.12 Detroit, MI 2.59 2.59 2.46 2.36 2.50 New York, NY 4.01 3.83 3.94 3.92 3.93 Hartford, CT 3.44 3.58 3.85 3.62 3.62 Houston, TX 2.52 2.55 2.88 2.44 2.60 Indianapolis, IN 2.25 2.25 2.22 2.19 2.23 Kansas City, MO 4.02 3.93 3.93 3.83 3.90 Louisville, KY 1.82 1.89 1.89 1.82 1.86 Miami, FL 4.00 4.00 3.90 3.90 3.95 Milwaukee, WI 3.72 3.69 3.69 3.62 3.68 Minneapolis, MN 4.09 4.09 4.09 4.09 4.09 New Orleans, LA 3.83 3.79 3.79 3.76 3.79 Oklahoma City, OK 3.41 3.56 3.12 3.39 3.37 Philadelphia, PA 3.61 3.61 3.54 3.48 3.56 Phoenix, AZ 2.82 2.82 2.82 2.82 2.82 Pittsburgh, PA 3.46 3.33 3.36 3.37 3.38 Portland, OR 3.16 3.22 3.19 3.19 3.19 Seattle, WA 3.26 3.26 3.26 3.26 3.26 St. Louis, MO 3.19 3.19 3.19 3.19 3.19 Syracuse, NY 2.88 2.87 2.88 2.78 2.85 Washington, DC 3.82 3.82 3.82 3.82 3.82 Wichita, KS 2.65 2.55 2.59 2.46 2.56 Simple Average 3.26 3.26 3.22 3.20 3.24
1 As collected by Federal milk order market administrators based on a survey conducted one day between the 1st and 10th of each month (excluding Fridays and weekends) in selected cities or metropolitan areas. One outlet of the largest and second largest food store chains and the largest convenience store chain are surveyed. The price represents the most common brand in nonreturnable containers. 2 Simple average of monthly prices.
Retail Prices for Organic Whole Milk, Average of Two Outlets, Selected Cities, by Months, 2018 1
City and State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2
(dollars per half gallon) Atlanta, GA 3.59 3.47 3.59 3.59 3.56 Baltimore, MD 4.11 4.11 4.89 4.89 4.50 Boston, MA 3.84 3.99 3.99 3.99 3.95 Chicago, IL 4.74 4.74 4.74 4.74 4.74 Cincinnati, OH 3.89 3.89 3.25 3.22 3.56 Cleveland, OH 3.99 3.99 3.99 3.99 3.99 Dallas, TX 3.31 3.31 3.31 3.21 3.29 Denver, CO 3.49 3.24 3.49 3.39 3.40 Detroit, MI 3.32 3.32 3.22 3.15 3.25 New York, NY 4.15 4.15 4.15 4.15 4.15 Hartford, CT 4.19 3.99 4.19 4.19 4.14 Houston, TX 3.24 3.24 3.24 3.14 3.22 Indianapolis, IN 4.12 4.12 3.74 3.64 3.91 Kansas City, MO 5.24 5.24 5.24 5.24 5.24 Louisville, KY 3.25 3.25 3.25 3.15 3.23 Miami, FL 4.24 4.24 4.27 4.27 4.26 Milwaukee, WI 5.04 5.04 5.04 5.04 5.04 Minneapolis, MN 4.49 4.49 4.49 4.49 4.49 New Orleans, LA 5.07 5.07 5.07 4.37 4.90 Oklahoma City, OK 4.73 4.73 4.48 4.63 4.64 Philadelphia, PA 4.69 4.69 4.89 4.69 4.74 Phoenix, AZ 3.99 3.99 3.99 3.89 3.97 Pittsburgh, PA 5.39 5.39 5.39 5.39 5.39 Portland, OR 4.79 4.89 4.89 4.79 4.84 Seattle, WA 3.54 3.54 3.54 3.54 3.54 St. Louis, MO 4.44 4.04 3.99 5.24 4.43 Syracuse, NY 4.24 4.39 4.24 4.24 4.28 Washington, DC 4.06 4.06 4.05 4.05 4.06 Wichita, KS 3.25 3.25 3.25 3.15 3.23 Simple Average 4.15 4.13 4.13 4.12 4.13
1 As collected by Federal milk order market administrators based on a survey conducted one day between the 1st and 10th of each month (excluding Fridays and weekends) in selected cities or metropolitan areas. One outlet of the largest and second largest food store chains are surveyed. The price represents the most common brand in nonreturnable containers. 2 Simple average of monthly prices.
Retail Prices for Organic Reduced Fat (2%) Milk, Average of Two Outlets, Selected Cities, by Months, 2018 1
City and State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 2
(dollars per half gallon) Atlanta, GA 3.59 3.47 3.59 3.59 3.56 Baltimore, MD 4.11 4.11 4.89 4.89 4.50 Boston, MA 3.84 3.99 3.99 3.99 3.95 Chicago, IL 4.74 4.74 4.74 4.74 4.74 Cincinnati, OH 3.89 3.89 3.25 3.22 3.56 Cleveland, OH 3.99 3.99 3.99 3.99 3.99 Dallas, TX 3.31 3.31 3.31 3.21 3.29 Denver, CO 3.49 3.24 3.49 3.39 3.40 Detroit, MI 3.32 3.32 3.22 3.15 3.25 New York, NY 4.15 4.15 4.15 4.15 4.15 Hartford, CT 4.19 3.99 4.19 4.19 4.14 Houston, TX 3.24 3.24 3.24 3.14 3.22 Indianapolis, IN 4.12 4.12 3.74 3.64 3.91 Kansas City, MO 5.24 5.24 5.24 5.24 5.24 Louisville, KY 3.25 3.25 3.25 3.15 3.23 Miami, FL 4.24 4.24 4.27 4.27 4.26 Milwaukee, WI 5.03 5.04 5.04 5.04 5.04 Minneapolis, MN 4.49 4.49 4.49 4.49 4.49 New Orleans, LA 5.07 5.07 5.07 4.37 4.90 Oklahoma City, OK 4.73 4.73 4.48 4.63 4.64 Philadelphia, PA 4.69 4.69 4.89 4.69 4.74 Phoenix, AZ 3.99 3.99 3.99 3.89 3.97 Pittsburgh, PA 5.39 5.39 5.39 5.39 5.39 Portland, OR 4.79 4.89 4.89 4.79 4.84 Seattle, WA 3.54 3.54 3.54 3.54 3.54 St. Louis, MO 4.44 4.04 3.99 5.24 4.43 Syracuse, NY 4.39 4.24 4.24 4.24 4.28 Washington, DC 4.06 4.06 4.05 4.05 4.06 Wichita, KS 3.25 3.25 3.25 3.15 3.23 Simple Average 4.16 4.13 4.13 4.12 4.13
1 As collected by Federal milk order market administrators based on a survey conducted one day between the 1st and 10th of each month (excluding Fridays and weekends) in selected cities or metropolitan areas. One outlet of the largest and second largest food store chains are surveyed. The price represents the most common brand in nonreturnable containers. 2 Simple average of monthly prices.
FEDERAL MILK ORDER MARKETING AND UTILIZATION SUMMARY, MARCH 2018
1 Names in parentheses are the major city in the principal pricing point of the market. 2 Statistical uniform price for component pricing orders (Class III price plus producer price differential). For other orders, uniform skim milk price times 0.965 plus uniform butterfat price times 3.5. 3 Totals may not add to 100 percent due to rounding. Report Contact: Randal Stoker, [email protected] or 202-690-1932.
Highlights: During March, 11.1 billion pounds of milk were received from federally pooled producers. This volume of milk is 9.4 percent lower than the March 2017 volume. Regulated handlers pooled 3.5 billion pounds of producer milk as Class I products, down 2.5 percent when compared to the previous year. Class I utilization decreased from last year in 9 of the 10 Federal Milk Order Marketing areas. The all-market average Class utilization percentages were: Class I = 31 percent, Class II = 15 percent, Class III = 35 percent, and Class IV = 19 percent. The weighted average statistical uniform price was $14.65 per cwt, up $0.31 from last month but down $2.17 from last year.
Price and Pool Statistics for Federal Milk Order Marketing Areas, March 2018
Mailbox Milk Prices for Selected Reporting Areas in Federal Milk Orders and California, 2017 Annual Averages, with Comparisons
1
For 2017, mailbox milk prices for selected reporting areas in Federal milk orders averaged $15.95 per cwt., $1.36 higher than the all-area average reported for 2016. The component tests of producer milk in 2017 averaged: butterfat, 3.82 percent; protein, 3.14 percent; and other solids, 5.75 percent. On an individual reporting area basis, mailbox prices increased for all Federal order milk reporting areas, and ranged from $18.96 in Florida to $15.24 in New Mexico. The Northwest States reporting area experienced the largest annual increase of $1.78 per cwt, while the New Mexico reporting area experienced the lowest annual increase of $0.81 per cwt.
Reporting Area 2 Mailbox Milk Prices 3
2016 2017 Difference (dollars per hundredweight)
New England States4 17.27 18.65 1.38
New York 15.97 17.46 1.49
Eastern Pennsylvania5 16.03 17.39 1.36
Appalachian States6 16.46 18.09 1.63
Southeast States7 16.27 17.55 1.28
Southern Missouri8 16.15 17.43 1.28
Florida 17.23 18.96 1.73
Western Pennsylvania9 16.07 17.71 1.64
Ohio 16.05 17.61 1.56
Indiana 15.76 17.02 1.26
Michigan 14.31 15.59 1.28
Wisconsin 16.59 17.95 1.36
Minnesota 16.45 17.56 1.11
Iowa 16.29 17.69 1.40
Illinois 16.34 17.94 1.60
Corn Belt States10
15.28 16.43 1.15
Western Texas11
15.33 16.77 1.44
New Mexico 14.43 15.24 0.81
Northwest States 15.81 17.59 1.78
All Reporting Areas 13 15.95 17.31 1.36
California 14 14.68 16.19 1.51 1 Net pay price received by dairy farmers for milk. Includes all payments received for milk sold and all costs associated with
marketing the milk. Price is a weighted average for the reporting area and is reported at the average butterfat test. Mailbox price does not include any Milk Income Loss Contract (MILC) payments. Mailbox price does include, for the most part, the assessment under the Cooperatives Working Together (CWT) program.
2 Information is shown for those areas for which
prices are reported for at least 75 percent of the milk marketed under Federal milk orders. The price shown is the weighted average of the prices reported for all orders that received milk from that area.
3 Figures are annual averages -- the weighted average of the monthly figures.
4 Includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. 5
All counties to the east of those listed in footnote 9.
6 Includes Kentucky, North Carolina, South Carolina, Tennessee, and Virginia.
7 Includes Alabama, Arkansas, Georgia, Louisiana, and Mississippi.
8 The counties Vernon, Cedar, Polk, Dallas,
Laclede, Texas, Dent, Crawford, Washington, St. Francois, and Perry, and all those to the south of these. 9 The counties of
Warren, Elk, Clearfield, Indiana, Westmoreland, and Fayette, and all those counties to the west of these. 10 Includes Kansas,
Nebraska, and the Missouri counties to the north of those listed in footnote 8. 11 All counties to the west of Fanin, Hunt, Van
Zandt, Henderson, Houston, Cherokee, Nacogdoches, and Shelby. 12 Includes Oregon and Washington.
13 Weighted average
of the information for all selected reporting areas in Federal milk orders. 14 Calculated by California Department of Food and
Agriculture. Annual average is a weighted average.
1 -- Dairy Market News surveys nearly 150 retailers, comprising over 23,000 individual stores, with online weekly advertised features.
Dairy Market News Branch
AgriculturalMarketingService
National Retail Report-DairyWebsites: http://www.marketnews.usda.gov/mnp/da-home and http://www.ams.usda.gov/mnreports/dybretail.pdf
Volume 85- Number 17 Issued Weekly Friday, April 27, 2018
Advertised Prices for Dairy Products at Major Retail Supermarket Outlets ending during the period of 04/27/2018 to 05/03/2018
Total conventional dairy retail advertisements decreased by 21 percent from last week to this week. On the organic side, retail ads decreased by 54 percent. Advertisements for most conventional dairy commodities reported a decline this week, excluding 32 ounce yogurt, which climbed 867 percent over last week. Organic yogurt, 32 ounce, kept paceby increasing dairy ads 469 percent from the previous week. As seasonally warmer temperatures progress, 48-64 ounce conventional ice-cream ads showed strength, posting the highest volume of retail dairy ads.
Since last week, total conventional milk ads have declined 74 percent, while organic milk ads followed closely with a78 percent decline. The national weighted average advertised conventional milk price for half gallons, $1.83, increased 28 cents from a week ago. Milk gallons averaged $2.14, down 28 cents from last week. Organic half gallon prices averaged $3.91, up 7 cents from a week ago. The premium for organic to conventional half gallon milk is $2.08. a decline of 21 cents from the previous report period.
Total conventional cheese advertisements decreased 32 percent. The weighted average price of conventional 8 ounce block cheese was $2.24, up 2 cents from last week. The weighted average price of conventional 8 ounce shred cheese was $2.21, down 6 cents compared to last week.
Retail U.S. average conventional one pound butter prices rose this week, up 49 cents this survey period, compared to last week. Organic butter averaged $5.49, up 51 cents, resulting in a $2.08 premium over conventional butter.
Yogurt Yogurt 32 oz 3.49-3.50 435 3.50 3.99 180 3.99
Commodity Type Pack Size
SOUTH CENTRAL U.S. SOUTHWEST U.S. NORTHWEST U.S.
Price Range
Stores with Ads
Wtd AvgPrice
Price Range
Stores with Ads
Wtd AvgPrice
Price Range
Stores with Ads
Wtd AvgPrice
Milk All fat tests half gallon 3.49 194 3.49
Milk All fat tests gallon 5.00 105 5.00
National Retail Report - Dairy Vol 85 - No. 17Friday, April 27, 2018 - Page 6
Wtd Avg - Simple weighted average
Commodity Type Pack Size
ALASKA U.S. HAWAII U.S.
Price Range
Stores with Ads
Wtd AvgPrice
Price Range
Stores with Ads
Wtd AvgPrice
Milk All fat tests half gallon 6.99 34 6.99
REGIONAL DEFINITIONS
As used in this report, regions include the following states:
NORTHEAST U.S. Connecticut, Delaware, Massachusetts, Maryland, Maine, New Hampshire, New jersey, New York, Pennsylvania, Rhode Island and Vermont
SOUTHEAST U.S. Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West VirginiaMIDWEST U.S. Iowa, Illinois, Indiana, Kentucky, Michigan, Minnesota, North Dakota, Nebraska, Ohio, South Dakota and WisconsinSOUTH CENTRAL U.S. Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, and TexasSOUTHWEST U.S. Arizona, California, Nevada and UtahNORTHWEST U.S. Idaho, Montana, Oregon, Washington, and WyomingALASKA AlaskaHAWAII HawaiiNATIONAL Continental United States
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Dairy Market News United States Department of Agriculture
Agricultural Marketing Service Dairy Programs Market Information Branch