DHM Markets: May dairy product output grows

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May 2014 Dairy Products

 

 

 

 

 

May

Change from

Y-T-D

Change from

 

2014

May 2013

2014

2013

 

(1,000 lbs.)

%

(1,000 lbs.)

%

Total cheese

964,955

2.2

4,685,190

1.7

American types

391,432

1.0

1,868,645

-0.2

Cheddar

288,313

2.5

1,374,398

-0.2

Italian types

413,690

5.1

2,049,531

4.6

Mozzarella

328,894

7.1

1,625,389

6.7

 

 

 

 

 

Butter

164,618

0.5

842,127

-3.6

 

 

 

 

 

Dry whey, total

81,261

2.0

360,621

-14.9

 

 

 

 

 

Nonfat dry milk, human

163,623

8.7

764,303

3.6

Skim milk powder, total

58,204

6.2

243,752

4.5

Source: USDA Dairy Products report

 

 

 

 

May dairy product output grows

USDA released its monthly Dairy Products report on July 3, summarizing May 2014 production estimates (see table above). FC Stone termed the report neutral to slightly bearish for butter; neutral for cheese; neutral for nonfat dry milk; and neutral for dry whey.

• Total cheese output (excluding cottage cheese) was 965 million lbs., 2.2% above May 2013 and 1.3 % above April 2014. Italian-type cheese production totaled 414 million lbs., 5.1% above May 2013, but 0.4% below April 2014. American-type cheese production totaled 391 million lbs., 1.0% above May 2013 and 3.9% above April 2014.

According to FCStone, American production eclipsed the 5-year average by 18.5 million lbs. and recorded a new all-time record monthly production high. May also marked the second month in a row with an increase in cheddar production. They expect that more milk was be pulled from the butter churn into the cheese vat in June.

• Butter production was 165 million lbs., 0.5% above May 2013, but 0.7% below April 2014. According to FCStone, it marked the first growth in year-over-year production since October 2013. Although production exceeded expectations, the butter market remains tight heading into the 4th of July holiday so we may not be done with lofty butter prices just yet.

Nonfat production in May was 163.6 million pounds, up 8.7% from a year ago. What’s more surprising is that production of skim milk powders was also up 3.4 million lbs. or 6.2% from May 2013.

 

Weekly dairy cow slaughter under federal inspection

Week ending June 21: 48,700 head

Year-to-date (YTD) 2014: 1,359,400 head

YTD compared to same period 2013: -162,700 head

Highlights: For the week, 33% came from USDA Zone 5 (IL, IN, MI, MN, OH & WI); 25% came from USDA Zone 9 (AZ, CA, HI & NV).

Source: USDA Weekly Cow Slaughter Report

 

Weekly ethanol production, corn use

Ethanol production data for the week ending June 27:

Ethanol production: 40.0 million gallons/day. The four-week average for ethanol production calculates to an annualized rate of 14.59 billion gallons.

Corn used: 14.45 million bushels/day

DIstillers grains production: 94,819 metric tons/day

Source: Renewable Fuels Association

 

Midwest milk-feed price ratios mixed

Lower alfalfa hay prices relative to other regions of the country helped keep June Midwest milk-feed price ratios higher than the national average. Even the Midwest, however, index trends were mixed compared to May.

Compared to a month earlier, the June index increased across three Midwest states (Michigan, Minnesota and Ohio), but Iowa and Wisconsin a slight decline, according to Dairy Market News. Ratios ranged from a high of 2.71 in Ohio to a low of 2.45 in Iowa and Wisconsin. The national average for June was 2.24, unchanged from revised May estimates.

The  index – representing pounds of 16% commercially mixed dairy feed equal in value to 1 lb. of whole milk – is based on current prices for a ration of 51% corn/8% soybeans/41% alfalfa hay.

Across the region, average alfalfa hay prices were $32 to $62/ton below the national average of $222/ton. Meanwhile, average milk prices were at or slightly above the $23.30/cwt. national average.

 



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