Market News

Solid start to the week for cheese

Cash cheese nudged a little higher on Monday with both barrels and blocks closing at $1.565 per pound.  Class III futures with some solid gains as indications are we are at the low for milk prices for this year.  The March Class III contract is at $15.52, April is at $15.58, July is over $16 and September through January ’16 contracts are over $17.

 

There is a lot of speculation as to how European producers will respond when the EU quotas expire tomorrow night.  Some think countries like Ireland are ready to increase milk production significantly while others say the economics are just not there for expansion right now.  One transition all seem to agree on is the number of farmers will decline as the average herd size increases across Europe.

 

Cooperatives Working Together (CWT) has accepted 18 requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold), and Tillamook County Creamery Association who have contracts to sell 3.976 million pounds of Cheddar, Gouda, and Monterey Jack cheese and 121,254 pounds of butter to customers in Asia, the Middle East, and Central America. The product has been contracted for delivery in the period from March through September 2015.

Year-to-date, CWT has assisted member cooperatives who have contracts to sell 23.437 million pounds of cheese and 24.333 million pounds of butter to 22 countries on five continents.

 

The February all-milk price fell 80 cents to average $16.80 per hundredweight.  That is $8.10 below February of last year.  The February all-milk price ranged from $21.20 in Florida to $14.72 in California.  Florida also tied Virginia for the biggest price drop from January down $1.40.

Brownfield states (compared to January)

  •             Illinois $17.70 (-$1.00)
  •             Indiana $17.10 (-$1.00)
  •             Iowa $17.10 (-.30)
  •             Michigan $16.60 (-$1.00)
  •             Minnesota $17.70 (-.60)
  •             Ohio $17.80 (-.90)
  •             South Dakota $18.50 (-.40)
  •             Wisconsin $17.70 (-.70)

The February milk-to-feed ratio is 2.02 compared to 2.09 in January and 2.59 a year ago.  The milk-to-feed ratio is the number of pounds of 16% mixed dairy feed equal to the price of a pound of milk.

 

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