Daily Cash Trading on Thursday, April 24, 2014




















Dairy podcast: ‘Mark & Bob’ think spring

Mark Stephenson, Director of Dairy Policy Analysis at the University of Wisconsin-Madison, and Bob Cropp, dairy economics professor emeritus, discuss the latest lackluster monthly Milk Production report and the anticipation of the “spring flush” in their latest podcast. Modest growth in milk production per cow in the Midwest is part of the equation. Declining global prices may impact U.S. export totals going forward, even though supplies remain tight. 2014 milk prices should average well  above 2013. View there latest podcast at http://dairy.wisc.edu/PubPod/Podcast/Outlook/Index.html


Weekly dairy cow slaughter under federal inspection

Week ending April 12: 54,000 head

Year-to-date (YTD) 2014: 877,600 head

YTD compared to same period 2013: -88,200 head

Highlights: For the week, 31% 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


1Q 2014 dairy cull cow slaughter far behind 2013

USDA also summarized monthly and year-to-date cull cow estimates through March. An estimated 245,700 culled dairy cows were slaughtered under federal inspection in March 2014, up 9,100 from February 2014, but down 28,500 from March 2013.

January-March 2014 slaughter is estimated at 752,500 head, down 78,000 from the same period in 2013. It's the lowest 1Q total since 2010.

For the year, 31% came from USDA Zone 5 (IL, IN, MI, MN, OH & WI); 26% came from USDA Zone 9 (AZ, CA, HI & NV).


Weekly ethanol production, corn use

Ethanol production data for the week ending April 18:

Ethanol production: 38.2 million gallons/day.

Corn used: 13.80 million bushels/day

DIstillers grains production: 90,540 metric tons/day

Source: Renewable Fuels Association


New Holland Sales Stables

Dairy replacement sales results from New Holland, Pa. on April 23:

Compared to last week, dairy cows sold mostly steady to firm.

Demand was very good on very light offerings. Heifers traded mostly

steady compared to last week. Demand was good. Heifer quality overall

was lower than last week, while cow quality improved. Prices are for Holsteins on a per-head basis unless otherwise noted.


Fresh Cows

Supreme:  2500-3400

Approved: 2000-2450

Medium:   1600-1950

Common:   1200-1500


Springing Heifers (bred 7-9 months)

Supreme:  2000-2225

Approved: 1750-1950

Medium:   1500-1700

Common:   1300-1475


Bred Heifers (bred 4-6 months)

Supreme:  1800-1925

Approved: 1525-1675

Medium:   1325-1450


Short Bred Heifers (bred 1-3 months)

Supreme:  1600-1650

Approved:  1550-1575

Medium:   1300-1375


Open Heifers

(300-600 lbs.)

Supreme:   900-950

Approved:  700-850


(600-900 lbs.)

Supreme:  1175-1310

Approved: 1000-1150

Medium:    900-925


(900-1200 lbs.)

Approved: 1100-1200


HighGround: China dairy imports

Though international prices officially began the downward correction in February as both Global Dairy Trade auction and European Union indices declined, those prices were likely for actual delivery in the second quarter, according to Eric Meyer, president of HighGround Trading Group’s Dairy Division. GDT volumes are typically heaviest in the second month contract, and prices did not start the rapid descent until the May and June delivery timeframe.

China remained very much interested in purchasing dairy products in March with yet another strong volume increase, both versus the previous year and prior month on most commodities, which bucked the February downward trend. It is likely China’s imports will remain strong through April, though since not all volume is purchased off GDT, it is possible we begin seeing some month-to-month reductions next month. A decent drop off during May-July is anticipated corresponding to New Zealand’s dramatic milk production decline during their winter season.

Will the downward correction continue into May? We certainly think it is possible for another modest correction lower as both Europe and the U.S. reach their seasonal peak and more fluid milk is diverted away from the bottle and more into manufacturing during the spring months. But with global inventories remaining well below the past number of years, we find it difficult for large dairy consuming regions to head into the Northern hemisphere summer and the beginning of New Zealand’s production season in a largely uncommitted position. One can “hope” the cards align and weather provides a positive boost to global milk production, but we believe buyers will be proactive this year to get their volume and price commitments in place so they aren’t blindsided with any “surprises” later this year.

For more on HighGround Dairy’s Market Intelligence, email dairy@highgroundtrading.com.


Meadow Gold Dairies' Hawai'i Hilo plant wins Dean Foods quality contest

Meadow Gold Dairies Hawai'i Hilo plant was awarded the Dean Foods CEO Quality Award for fluid milk, the company's top honor. Cited for its excellence in protecting quality from farm to table and in customer service, Meadow Gold Dairies Hawai'i Hilo was selected over Dean Foods' 70 other dairy plants.

The honor is the culmination of an intensive assessment process of eight finalists. Winners are based on multiple criteria such as Safe Quality Food (SQF) Program scores, training participation and consumer complaint improvement. Dean senior leadership also assesses quality innovations, best practices and the "quality culture" within the plant.

Meadow Gold Dairies Hawai'i has been providing wholesome, nutritious, and delicious food and beverages to Hawai'i's people and families since 1897, when seven O'ahu dairy farms formed a cooperative. It provides consumers with dairy, juice, beverage, ice cream and frozen novelty products.


Dannon launches Danimals® SuperStars Greek Lowfat Yogurt

Dannon recently launched new Danimals® SuperStars Greek Lowfat Yogurt, made specifically to appeal to the unique taste preferences of kids and nutrition expectations of moms.

With 10g of protein per 4oz cup, Danimals SuperStars is also a good source of calcium and Vitamin D, which help build strong bones. Also, similar to other Danimals products, Danimals SuperStars has no artificial colors or flavors and no high fructose corn syrup.

It comes in five flavors: Strawberry Slide, Strawberry Banana Sprint, Cotton Candy Thrill, Mixed Berry Half-Pipe and Cherry Rush.

Visit Danimals.com for more information, and connect with us on Facebook at Facebook.com/Danimals.