Another cheese decline

Daily Cash Trading on Wednesday, April 30, 2014

 

CLOSE

CHANGE

 

($/lb.)

(¢/lb.)

CHEESE  BARRELS

2.1300

-4.00

CHEESE  40# BLOCKS

2.1350

-3.50

NFDM  GRADE A

1.7875

-1.25

BUTTER  GRADE AA

1.9500

4.00

 

 

Feed prices push April milk-feed price ratio lower

Record-high monthly average milk prices weren't enough to offset gains in feed prices – especially alfalfa hay – pushing the preliminary April 2014 milk-feed price ratio lower. At 2.44, the index is down from 2.56 in March 2014, but still the fourth-highest monthly index since January 2008.

The index is based on the current milk price in relationship to feed prices for a ration of 51% corn, 8% soybeans and 41% alfalfa hay.

The April 2014 U.S. average all-milk price was $25.50/cwt., compared to $25.20/cwt. in March 2014 and $19.50/cwt. in April 2013. 

April corn, at $4.73/bushel, was up 22¢ from March, but $2.24 less than April 2013.

April 2014 soybeans averaged $14.50/bushel, up 80¢ from March, and up 10¢ from April 2013.

Alfalfa hay averaged $206/ton in April, up $15 from March 2014, but $7 less than April 2013.

 

Milk-feed price ratio*

 

 

 

April 2013

March 2014

April 2014

Milk ($/cwt.)

19.50

25.20

25.50

Corn ($/bu.)

6.97

4.51

4.73

Soybeans ($/bu.)

14.40

13.70

14.50

Alfalfa hay ($/ton)

213

191

206

Milk-feed ratio    

1.54

2.56

2.44

Source: USDA Ag Prices report

 

* The price of commercial prepared dairy feed is

based on current United States prices received for

corn, soybeans, and alfalfa hay. The rmodeled feed

ration uses 51% corn, 41% alfalfa hay and 8% soybeans

 

Mammoth Cave Dairy Auction

Dairy replacement sales results from Smiths Grove, Ky., on April 29:

(Holsteins, supreme and approved, $/head unless otherwise noted)

Springers: 2-3 years old, 5-8 months bred

Supreme: 1600-2400

Approved: 1450-1575

Fresh Milking Cows: 2-4 years old 

Supreme: 1950-2000

Approved: 1650-1675

Short Bred: 2-3 years old, 1-4 months bred

Approved: 1400

Open Heifers:

200-300 lbs.  335-500

300-400 lbs.  510-580

400-500 lbs.  650-710

500-600 lbs.  575-835

600-700 lbs.  875-900

Holstein Heifers Calves: Small 100-140; Medium and Large 170-300 per head.

 

NDPSR

Weekly National Dairy Product Sales Report

Week ending April 26

 

 

 

 

Change from

 

Ave. price

previous week

 

($/lb.)

(¢/lb.)

Butter

1.86

-10.0

Cheddar blocks

2.29

-7.1

Cheddar barrels

2.25

-3.2

Dry whey

0.687

0.8

NFDM

2.02

0.6

 

California NFDM price up

California NFDM average price

 

Week ending

Avg. price ($/ lb.)

7-day sales (lb.)

April 25

2.0124

11,292,368

April 18

1.9751

12,972,450

April 11

1.9798

16,664,692

April 4

2.0007

16,243,376

 

Weekly ethanol production, corn use

Ethanol production data for the week ending April 25:

Ethanol production: 37.7 million gallons/day.

Corn used: 13.62 million bushels/day

DIstillers grains production: 89,347 metric tons/day

Source: Renewable Fuels Association

 

Planting delays impact 2014 corn yield prospects

It is generally acknowledged that the U.S. average corn yield is largely determined by weather conditions during the reproductive and grain filling stages during the summer months, note Scott Irwin and Darrel Good, University of Illinois ag economists. Still, timeliness of planting is known to influence the yield outcome – negatively correlated to the portion of the acreage planted after the optimum date for maximum yield potential – regardless of subsequent weather.  With the slow start to planting the 2014 corn crop, there is some concern that a larger-than-average percent of the crop may be planted after the optimum date, and therefore reduce the average yield potential. Extreme planting delays might also reduce expectations for the magnitude of acreage planted to corn. Read more

Read also: Corn planting pace quickens despite soggy start