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Dairy markets: Spot cheese, butter move higher

It was another higher day for spot markets, as cheddar blocks pushed up 4.5¢ and barrels rallied 2¢. Tightness in the marketplace has caused quite the stir in the spot markets, and many are wondering where the sellers went?

News

May-June MPP-Dairy margin is $7.995/cwt.

With USDA’s announcement of June numbers, the average margin for the May-June pay period is $7.995/cwt., meaning only those producers insured at the $8.00/cwt. level will see a small indemnity payment, and even that will be reduced by federal budget sequestration.

Markets

Replacement, cull cow prices remain strong

While the outlook for U.S. milk prices is bearish, quarterly average prices paid for replacement dairy cows maintained strength in July. And, estimated June 2015 cull cow prices averaged $113.00/cwt., down just $1.00/cwt. from May.

Industry

Access to China key factor in maintaining meat export growth

The U.S. red meat industry has achieved outstanding export growth in recent years, enhancing profitability for all members of the supply chain. In 2014, both beef exports ($7.13 billion) and pork exports ($6.67 billion) shattered previous records for export value. Beef exports have steadily increased in value in each of the 11 years since global markets began to reopen after the first U.S. case of BSE. For pork, export value has increased in 15 of the past 20 years.

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