GDT price index sets two-year low

Global Dairy Trade (GDT) losses continue in dramatic fashion, according to Eric Meyer, president of HighGround’s Dairy Division.

“The world’s dairy farmers and those that make or sell dairy products across the globe must be scratching their heads thinking just six months ago, there was an insatiable appetite for all things dairy and prices would remain above average for the foreseeable future,” Meyer said.

“As the dust settles from this week’s auction, the GDT Price Index has fallen to two-year lows and shed more than 40% of its value over the past six months,” he explained. “For New Zealand dairy farmers, the loss of this perceived income is quite significant. The soft landing hypothesis has been proven wrong.”

“Those of us that have been a part of the U.S. dairy industry for a while have gone through this boom-and-bust cycle a few times over the past 15 years,” Meyer continued. “And after witnessing the 2014 GDT price collapse over the past six months, it appears that a vicious dairy market collapse can and will occur just about anywhere."

For more information, contact ericm@highgroundtrading.com

 

Weekly NDPSR

Weekly National Dairy Product Sales Report

Week ending Aug. 6, 2014

 

 

 

 

Change from

 

Ave. price

previous week

 

($/lb.)

(¢/lb.)

Butter

2.53

11.8

Cheddar blocks

2.01

0.3

Cheddar barrels

2.07

1.2

Dry whey

0.693

0.4

NFDM

1.84

0.4

 

Weekly California powder price

California NFDM average price

 

Week ending

Avg. price ($/ lb.)

7-day sales (lb.)

Aug. 1

1.8438

11,247,293

July 25

1.7887

13,973,399

July 18

1.8109

11,116,613

July 11

1.8043

11,695,253

July 4

1.8161

14,233,424

Source: CDFA

 

 

 

Weekly ethanol production, corn use

Ethanol production data for the week ending Aug. 1:

Ethanol production: 37.9 million gallons/day, a 13-week low. The four-week average for ethanol production calculates to an annualized rate of 14.1 billion gallons.

Corn used: 13.7 million bushels/day

DIstillers grains production: 89,137 metric tons/day

Source: Renewable Fuels Association

 

Mammoth Cave Dairy Auction

Dairy replacement sales results from Smiths Grove, Ky., on Aug. 5:

(Holsteins, price per head, unless otherwise noted)

 

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

Supreme: 1750-2350

Approved: 1500-1600

Medium: 1250-1425

Common: 1050-1185

 

Fresh Milking Cows: 2-4 years old

Supreme: 2100-2275

Approved: 1525

Medium: 1375

Common: 935-975

 

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

Supreme: 1625-1675

Common: 1075

 

Open Heifers: (Supreme & Approved)

150-200 lbs.: 535

200-300 lbs.: 350

300-400 lbs.: 575-700

400-500 lbs.: 635-925

500-600 lbs.: 760-1075

 

Holstein Heifers Calves: Small 140-200; Medium-Large 230-350.