November commercial disappearance outpaces milk marketings
Monthly commercial disappearance of milk used in all dairy products has surpassed U.S. dairy farmer milk marketings for the same month for six consecutive months, according to USDA’s monthly Dairy Data report.
Commercial disappearance of milk used in all dairy products during November 2013 totaled 17.72 billion lbs., 5.4% more than November 2012, and about 1.79 billion lbs. more than total U.S. producer milk marketings for the month. Monthly commercial disappearance has surpassed milk marketings since June.
Producer milk marketings for November 2013 totaled 15.93 billion lbs. Adding to available supplies, beginning commercial stocks totaled 12.78 billion lbs., and imports for the month totaled 295 million lbs., for a total of 29.01 billion lbs., the lowest level of the year
At the end of November 2013, ending commercial stocks totaled 11.83 billion lbs., down about 953 million lbs. compared to October 2013, but still about 529 million lbs. more than November 2012.
CWT assists with 7.4 million lbs. of cheese, butter export sales
Cooperatives Working Together (CWT) accepted 29 requests for export assistance from Bongards Creameries, Dairy Farmers of America, Foremost Farms USA, Maryland Virginia Milk Producers Cooperative Association and Tillamook County Creamery Association to sell 5.758 million lbs. of cheddar, Gouda and Monterey Jack cheese and 551,156 lbs. of butter to customers in Asia, Central America, the Middle East and North Africa. The product will be delivered January through June 2014.
Year-to-date, CWT has assisted member cooperatives in selling 8.494 million lbs. of cheese and 3.542 million lbs. of butter to 12 countries on four continents. These sales are the equivalent of 158 million lbs. of milk on a milkfat basis.
Source: Cooperatives Working Together
NFDM headed for record
While the dramatic increase in cheddar cheese prices are important for the determination of Class III milk prices under federal orders and Class 4b prices under the California system, a similar dramatic story can be told with respect to nonfat dry milk (NFDM) prices, according to Brian Gould, University of Wisconsin-Madison dairy economist.
NFDM helps drive the Class IV price determination under federal orders and Class 4a for California.
Since April 2013 there has been a relatively constant increase in NFDM prices. Gould reminds readers that under the FMMO system, the higher of the Advanced Class III and IV prices determines the Class I (beverage milk) base price. The advanced Class IV price has been the mover since March 2013.