USDEC: China’s appetite keeps markets firm
Global milk production is on the rise, but the market – especially China – is easily absorbing supplies, according to the latest Global Dairy Market Outlook from the U.S. Dairy Export Council.
Combined milk production/deliveries from the five major suppliers (EU-28, U.S., New Zealand, Australia and Argentina) was up 2.7% in the August-November period – an increase of 618,000 tons of milk per month.
Meanwhile, in the last four months of 2013, China imported a staggering 550,404 tons of milk powder, whey, cheese and butterfat – more than the purchases of Russia, Mexico, Japan and Algeria put together. This figure is up 74% from the year before. For the full year, imports were up 34% from 2012 and up 61% from 2011.
China’s appetite (and willingness to pay historically high prices) has squeezed out other buyers in recent months.
December retail prices mixed
U.S. average retail dairy product prices paid in December 2013 were mixed compared to the previous month and year, according to the U.S. Department of Labor.
• Whole fluid milk prices averaged $3.50/gallon, up a penny from November 2013, but 8¢ less than December 2012.
• Process cheese averaged $4.35/lb., up about 3¢ from November and 9¢ more than a year earlier.
• Natural cheese averaged $5.39/lb. in December 2013, down 0.5¢ from November 2013, and down 48¢ from December 2012.
• Ice cream average $4.98 per half gallon, up about 9¢ from November, but about 2¢ less than a year earlier.
• Butter comparisons were not available.
Source: Dairy Market News
January Credit Managers' Index improves
The nation's Credit Managers’ Index (CMI) is on a roller coaster, but improved in January according to the National Association of Credit Management (NACM).
The November CMI hit a two-year high, followed by a December low that took the index back to summer levels. Now, January’s CMI rebounded to 57.3, the highest point in over a year.
Positive factors include sales, new credit applications and amount of credit extended. All posted gains in January.
Almost all negative factors improved, including rejections of credit applications, accounts placed for collection, dollar amount beyond terms
For a full breakdown of the manufacturing and service sectors, in addition to tables and graphs, view the complete CMI report for January 2014 online. NACM and its network of affiliated associations are the leading resource for credit and financial management information, education, products and services.