Weekly dairy cow slaughter under federal inspection
Week ending Jan. 25: 60,500 head
Year-to-date (YTD) 2014: 240,000 head
YTD compared to same period 2013: -17,100 head
Highlights: For the week, 30% came from USDA Zone 5 (IL, IN, MI, MN, OH & WI); 26% came from USDA Zone 9 (AZ, CA, HI & NV).
Source: USDA Weekly Cow Slaughter Report
FAO January food price index down, but dairy, beef up
Global dairy prices rose in January 2014, bucking a trend that saw the United Nations’ Food and Agriculture Organization (FAO) Food Price Index decline. The FAO Food Price Index is a measure of the monthly change in international prices of a basket of five food commodities – cereal, vegetable oil, dairy, meat and sugar.
The FAO Dairy Price Index rose 1.3% over December. Demand for all dairy products remains firm, especially from China, North Africa, the Middle East (SMP and WMP) and the Russian Federation (butter). Seasonal production is shifting from the southern to the northern hemisphere. Therefore, overall, there are only limited supplies available, lending support to prices.
The FAO Meat Price Index declined 1% from December, but that decline was primarily due to pork and lamb/mutton. Beef and poultry rose marginally, with beef demand from China and Japan resulting in prices showing consistent growth since the middle of 2013.
Overall, the FAO Food Price Index was down 1.3% from December and 4.4% below January last year. Sugar and vegetable oils dropped by 5.6% and 3.8%, respectively.
Gould: Wisconsin ‘mailbox’ price could be headed for record
January's Class III price is the fourth highest on record, at $21.67/cwt., and the second-highest January price on record. The January Class IV price is $22.29/cwt., an all-time record for any month.
February Class III futures closed up 24¢ yesterday on Feb. 5, at $23.08/cwt., which would be an all-time high Class III price. (http://future.aae.wisc.edu/data/futures/by_trade_date/3.rhtml).
In terms of the impacts on Wisconsin mailbox prices, our current forecast is for February's value to be $24.96/cwt., another all-time high by more than $2.00/cwt. from November 2012's value.
The current predicted 2014 average Wisconsin mailbox price for 2014 is $21.11/cwt., the highest since 2001, and $1.05/cwt. greater than the previous yearly average high of $20.06/cwt. for 2011.
FCStone Inc. acquires Sinclair & Company
INTL FCStone Inc. announced that its wholly owned subsidiary, FCStone, LLC, has acquired Sinclair & Company, an introducing broker in Twin Falls, Idaho. Focusing on dairy, grains and livestock, Sinclair & Company has been meeting the commodity risk management needs of their customers since the late 1970s. Further information, visit www.intlfcstone.com.