June FMMO Class III down, but Class IV higher

The federal order Class III milk price declined in June, but the Class IV price rose, according to the monthly price announcement from USDA's Ag Marketing Service.

June 2014 prices, compared to previous month and year, include:

• Class III: $21.36/cwt., down $1.21 from May 2014, but $3.34 more than June 2013. The 2014 Y-T-D average is $22.68/cwt., up $4.94 from the January-June 2013 average of $17.74/cwt. The June federal order Class III price is $2.29 more than the comparable June California Class 4b price.

• Class IV: $23.13/cwt., up 48¢ from May 2014 and $4.25 more than May 2013. The 2014 Y-T-D average is $23.09/cwt., up $4.92 from the January-June 2013 average of $18.17/cwt.

 

Dairy Margin Watch: Margins end June stronger

Dairy margins moved sharply higher to finish June, supported by a combination of higher milk prices and lower corn and soybean meal costs, according to the latest CIH Margin Watch report from Commodity & Ingredient Hedging, LLC. Forward margins remain extremely favorable from a historical perspective, at or well above the 90th percentile of the previous 10 years deep into 2015.

Milk futures have been supported by a strong butter market, with spot values at the CME hitting $2.50/lb. on June 30. USDA’s Cold Storage report showed May 31 butter stocks at 192.5 million lbs., up 10.6% from April, but down 40.2% from last year.

U.S. May milk production was reported at 18.06 billion lbs., up 0.3% from April and 1.4% more than May 2013. The report also reflected a larger milking herd, with 10,000 cows added in May, to a two-year high of 9.252 million. The milking herd has grown by 54,000 head since November, and milk production may expand more quickly with improved weather and hay supplies improving forages – particularly in the Midwest.

USDA released June acreage and quarterly stocks reports, which were decidedly bearish for corn and soybeans. June 1 corn stocks of 3.854 billion bushels were 130 million above the average trade guess, and implied much lower feed usage in the March-May period than the market was expecting. Soybean acreage, meanwhile, was revised up 3.3 million acres from the March Planting Intentions report, to 84.84 million, well above the average trade estimate. Both corn and soybean meal markets were sharply lower as a result.

Visit www.cihmarginwatch.com.

 

Weekly NDPSR

Weekly National Dairy Product Sales Report

Week ending July 2, 2014

 

 

 

 

Change from

 

Ave. price

previous week

 

($/lb.)

(¢/lb.)

Butter

2.21

3.5

Cheddar blocks

2.04

0.7

Cheddar barrels

2.02

0.3

Dry whey

0.683

0.4

NFDM

1.88

0.6

 

California weekly NFDM price average

California NFDM average price

 

Week ending

Avg. price ($/ lb.)

7-day sales (lb.)

June 25

1.8202

11,626,362

June 20

1.8256

10,238,432

June 13

1.8407

11,242,282

June 6

1.8454

10,162,093

May 30

1.9057

8,383,800

 

 

New Holland Sales Stables

Dairy replacement sales results from New Holland, Pa. on July 2:

Compared to last week, Dairy cows sold 100-200 higher on good demand. Herd quality very good this week. Bred heifers sold steady to 100 higher. Demand was good. Trade was active. Wednesday's supply included 117 fresh milking cows, 24 springing cows, 52 short bred cows, 55 springing heifers, 36 short bred heifers, 50 open heifers, and 9 bulls. One hundred percent of reported supply Holsteins unless otherwise noted. All sales sold on a per-head basis.

 

Fresh cows

Supreme: 2200-3000

Approved: 1700-2150

Medium: 1375-1650

Common: 1000-1275

 

Short bred cows (1-3 months)

Supreme: 2050-2400

Approved: 1650-1800

Medium: 1300-1550

Common: 1150-1250

 

Bred Cows (4-6 months):

Supreme: 2250-2500

Approved: 1750-1950

Medium: 1475-1500

 

Springing cows (bred 7-9 months)

Supreme: 2150-2500

Approved: 1800-2050

Medium: 1575-1750

Common: 1350-1450

 

Springing heifers (7-9 months)

Supreme: 1900-2250

Approved: 1650-1850

Medium: 1500-1550

Common: 1200-1250

 

Bred heifers (4-6 months)      

Approved: 1700-1950

Medium: 1375-1675

Common: 1000-1200

 

Short bred heifers (1-3 months)

Supreme: 1700-1900

Approved: 1500-1600

Medium: 1300-1350

Common: 1050-1100

 

Open Heifers

Supreme

600-900 lbs 1100-1300

 

Approved

300-600 lbs 675-835

900-1200 lbs 1200-1410

 

Medium

300-600 lbs 450-625

600-900 lbs 835-950

 

Common

300-600 lbs 325-400

600-900 lbs 685-825

 

Mammoth Cave Dairy Auction

Dairy replacement sales results from Smiths Grove, Ky., on July 1:

(Holsteins, price per head, unless otherwise noted)

 

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

Supreme: 1700-2100

Approved: 1500-1675

Medium: 1250-1400

Common: 925-1175

 

Fresh Milking Cows: 2-4 years old

Approved: 1775-2125

Common: 1025-1200

 

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

Supreme: 1525

Medium: 900-1100

 

Open Heifers: (Supreme & Approved)

200-300 lbs. 460

400-500 lbs. 585-860

 

Holstein Heifers Calves: Small 170-200; Medium-Large 240-330.

 

Turlock Livestock Auction Yard

Dairy replacement sales (828 head) results from Turlock, Calif., on June 27. Prices $/head unless otherwise noted:

#1 Holstein springers: 1900-2600

#2 Holstein springers: 1400-1875

#1 Jersey springers: 1800-2225

#1 Jersey-X springers: 1500-2200

 

Holstein Open Heifers

7 Hd. 265 lbs @ 510

5 Hd. 375 lbs @ 760

15 Hd. 560 lbs @ 1085

16 Hd. 631 lbs @ 1135

 

Jersey Open Heifers

5 Hd. 256 lbs. @ 625

 

Weigh Beef Cows

Top Yielding 97-112.50/cwt.

Med Yielding 82-96/cwt.

Low Yielding 58-81/cwt.

 

Weigh Dairy Cows

Top Yielding 95-110.25/cwt.

Med Yielding 82-94/cwt.

Low Yielding 55-81/cwt.