CME spot prices

Daily CME Cash Trading on Wednesday, May 7, 2014










Cheddar barrels



Cheddar blocks



NFDM  Grade A



Butter Grade AA




Pennsylvania April IOFC shrinks

Penn State University’s measure of income over feed costs (IOFC) dropped 2.2% in April, according to the latest Dairy Outlook report from economist Jim Dunn. At $11.93/cow/day, the April IOFC is down 27¢/day from March, but still $4.71 more than April 2013 and the second highest since calculations began in January 2000.

IOFC reflects daily gross milk income less feed costs for an average cow producing 65 lbs. of milk per day.

Although both Pennsylvania milk and feed prices rose in April, the milk price increase was more than offset by a 9.1% gain in feed prices, with corn, soybean and hay prices all climbing. The average cost to feed a cow producing 65 lbs. of milk per day was $5.62/day, up 47¢ from March, but 68¢ less than April 2013.

The March 2014 Pennsylvania all-milk price of $27.00/cwt. is the highest on record, up 30¢ from March and up $6.20/cwt. from April 2013.

Measured another way, feed costs per hundredweight of milk produced averaged $8.65/cwt. in April, up 72¢ from March. The milk margin over feed costs was $18.35/cwt., down 42¢/cwt. from March 2014, but up $7.24/cwt. from April 2013.

Dunn’s forecast of the average 2014 Pennsylvania all-milk price is $24.46/cwt., which would be up $2.98 (13.9%) from 2013’s estimated price of $21.48/cwt.


National Dairy Products Sales Report

Weekly National Dairy Product Sales Report

Week ending May 3, 2014





Change from


Ave. price

previous week







Cheddar blocks



Cheddar barrels



Dry whey







Weekly ethanol production, corn use

Ethanol production data for the week ending May 2:

Ethanol production: 37.6 million gallons/day, a six-week low.

Corn used: 13.56 million bushels/day

DIstillers grains production: 88,949 metric tons/day

Source: Renewable Fuels Association


Sulphur Springs Dairy Auction

Dairy replacement sales results ($/head) from Sulphur Spring, Texas, on May 1:

Fresh cows: $1700-$2000

Holstein Springers: $1700-$2350

Breeding age heifers: $740-$1250

Small heifers: $400-$700

Heifer calves: $125-$275


Mammoth Cave Dairy Auction

Dairy replacement sales results from Smiths Grove, Ky., on May 6:

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

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

Supreme: 1600-2300

Approved: 1450-1575


Fresh Milking Cows: 2-4 years old

Supreme: 1750-2425

Approved: 1500-1625


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

Supreme: 1875


Open Heifers: (Supreme & Approved)

300-400 lbs. 450-600

400-500 lbs. 435-775

500-600 lbs. 785-900

600-700 lbs. 925-1035

700-800 lbs. 1285-1350


Holstein Heifers Calves: Small 100-160; Medium and Large 200-290 per head.


Townley named Agri-Mark COO

Ed Townley has been promoted to Chief Operating Officer for Agri-Mark, with responsibility for operations, sales, marketing and information technology for Cabot, McCadam and Agri-Mark whey proteins.

Townley previously served as Chief Financial Officer for Cabot Creamery Cooperative for nine years. He assumes the role previously held by Dr. Richard Stammer, who remains as Agri-Mark CEO.

Agri-Mark, with $952 million in 2013 sales, markets more than 300 million gallons of milk each year for more than 1,200 dairy farm families in New England and New York. The cooperative is headquartered in Methuen, Mass.


Consumer Confidence Index® fell slightly in April

The Consumer Confidence Index®, which had increased in March, declined slightly in April. However, consumer expectations regarding the short-term outlook held steady, indicating those responding to the survey do not foresee the economy or labor market losing momentum toward improvement.

Consumers claiming current business conditions are “good” edged down to 21.8% from 22.6%, while those claiming business conditions are “bad” rose to 24.4% from 23.5%. Assessment of the labor market was also slightly more negative. Those stating jobs are “plentiful” declined to 12.9% from 13.8%, while those saying jobs are “hard to get” increased to 32.5% from 31.4%.

The percentage of consumers expecting business conditions to improve over the next six months was unchanged at 17.4%, while those anticipating conditions to worsen increased marginally to 10.3% from 10.1%. Those expecting more jobs in the months ahead increased to 15.0% from 14.1%, while those expecting fewer jobs edged up to 17.9% from 17.5%. The proportion of consumers anticipating their incomes to grow increased to 17.1% from 15.3%, but those expecting a drop in their incomes also increased, to 12.9% from 11.5%.