CME daily: A small uptick on Friday

Daily CME Cash Trading on Friday, May 30, 2014

 

 

 

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Change

 

($/lb.)

(¢/lb.)

Cheddar barrels

1.9350

+1.25

Cheddar blocks

1.9600

n.c.

NFDM Grade A

1.8450

+1.25

Butter Grade AA

2.3000

+0.50

 

May milk prices start decline

USDA’s preliminary estimate of the May U.S. all-milk price, at $24.70/cwt., was down 60¢ from April, and the first month-to-month decline since July 2013. It compares to $19.70/cwt. in May 2014.

Year-to-date, the 2014 average all-milk price stands at $24.72/cwt., up $5.18 from the same period in 2013.

Despite the national average decline, Florida dairy farmers saw May 2014 prices increase 50¢, to $29.20/cwt. Dairy farmers in Virginia, at $27.40/cwt. and Oregon, at $27.00/cwt., were also among the nation's leaders. Thirteen other states saw average milk prices at $25.00/cwt. or higher, according to the USDA/NASS Ag Prices report.

Among the largest milk-producing states, California's May all-milk price averaged $22.30/cwt., down $1.11 from the April revised estimate. New York’s average, at $25.90/cwt., was down 40¢, while Wisconsin, at  $25.60/cwt., was down 70¢ from the month before. Idaho, at $23.70/cwt., was down 80¢.

Prices received for all milk, major dairy states and U.S. ($/cwt.)

 

May 2013

April 2014

May 2014*

Arizona

19.00

24.30

23.90

California

18.23

23.41

22.30

Colorado

19.70

25.00

24.90

Florida

22.80

28.70

29.20

Idaho

19.10

24.50

23.70

Illinois

20.30

26.20

25.60

Indiana

20.30

25.50

25.10

Iowa

20.40

26.20

25.80

Kansas

19.70

25.50

25.30

Michigan

20.00

25.40

25.00

Minnesota

20.50

26.60

25.90

New Mexico

18.20

23.40

23.40

New York

20.50

26.30

25.90

Ohio

20.60

25.80

25.40

Oregon

21.20

27.20

27.00

Pennsylvania

20.90

26.80

26.50

South Dakota

21.30

26.50

25.90

Texas

19.80

26.20

26.00

Utah

19.20

24.60

24.50

Vermont

20.70

26.60

26.30

Virginia

21.60

27.40

27.40

Washington

20.10

25.70

24.80

Wisconsin

20.40

26.30

25.60

United States

19.70

25.30

24.70

Source: USDA

 

 

 

* Preliminary

 

 

 

 

May milk-feed price ratio slips

A slight decline in the U.S. monthly average milk price combined with higher alfalfa hay and soybean prices to push the preliminary May 2014 milk-feed price ratio down for a third consecutive month. At 2.28, the index is down from 2.43 in April 2014 and the lowest monthly average for 2014, according to the USDA/NASS Ag Prices report.

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 May 2014 U.S. average all-milk price was $24.70/cwt., compared to $25.30/cwt. in April 2014 and $19.70/cwt. in May 2013. 

May corn, at $4.71/bushel, was unchanged from April, but $2.26 less than May 2013.

May 2014 soybeans averaged $14.50/bushel, up 20¢ from April, but down 40¢ from May 2013.

Alfalfa hay averaged $224/ton in May, up $18 from April 2014 and $3 more than May 2013. Among major dairy states, preliminary May 2014 alfalfa hay prices hit $265/ton in New Mexico; $260/ton in California; and $252/ton in Texas. Prices were lowest in North Dakota and Nebraska, at $99/ton and $125/ton, respectively.

 

Milk-feed price ratio*

 

 

 

May 2013

April 2014

May 2014

Milk ($/cwt.)

19.70

25.30

24.70

Corn ($/bu.)

6.97

4.71

4.71

Soybeans ($/bu.)

14.90

14.30

14.50

Alfalfa hay ($/ton)

221

206

224

Milk-feed ratio    

1.53

2.43

2.28

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

 

Cull cow prices top $1/lb. again

Estimated U.S. May 2014 cull cow prices (beef and dairy combined) averaged $104.00/cwt., according to the USDA/NASS Ag Prices report. The average is up $1.00/cwt. from April’s revised estimate, and $22.20/cwt. more than May 2013. At that price, a 1,300-lb. cull cow is worth $1,352.