Page 8 Dairy Star Second Section Saturday, June 9, 2012
The Mielke Market Weekly By Lee MielkePrices and policy have our
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All eyes remain on milk prices. Californias May 2012 Class 4a
butter/powder milk price is $13.45 per hundred-
weight (cwt.), down $1.27 from April and $6.49 less than May
2011. The 4b cheese milk price is $13.56, up 13 cents from April,
$1.18 less than a year ago, and $1.67 below the Federal order Class
III price. The 4b price 2012 average now stands at $13.66, down
from $15.05 at this time a year ago and com-pares to $12.30 in
2010. The 4a price average is now at $15.04, down from $18.56 a
year ago and com-pares to $13.37 in 2010. Looking back to the
futures; after factoring in the announced Federal order Class III
milk prices and the remaining futures, the average Class III milk
price for the rst six months of 2012 stood at $15.65 on March 2,
$15.70 on May 10, and $15.94 on May 25. The last half of 2012 was
averaging $15.61 on April 27, $15.08 on May 4, $15.44 on May 11,
$15.69 on May 18, $16.13 on May 25 and $18.57 on June 1. And, as
the old saying goes, What goes up must come down, and then back up
again. Cash block cheese, after hitting the high for 2012 at $1.65
on June 1, reversed gears and headed sharply lower the week of June
4. Carloads of block traded hands on the week and of barrel. The
lagging AMS-surveyed U.S. block price slipped a half-cent to
$1.5163. The barrels averaged $1.4995, up 0.6 cent. Increased milk
production is mainly gong to the churn and the dryer. April butter
production totaled 170 million pounds, according to USDAs latest
Dairy Products report, down 3.3 percent from March but 7.2 percent
above April 2011. Nonfat dry milk output hit 192 million pounds, up
2 percent from March and a whopping 31.1 percent from a year ago.
American type cheese, at 372 million pounds, was down 2.7 percent
from March but 3.5 percent above a year ago. Total cheese output
hit 903 mil-lion pounds, down 4.7 percent from March but 2.1
percent above a year ago. Cheese plants were busy over the Memorial
Day holiday weekend as surplus milk was available, ac-cording to
USDAs Dairy Market News. Production of cheese is increased over
last year and supplies are described as manageable. The
Cooperatives Working Together (CWT) program continues to assist
with export sales, USDA reported, and another earthquake in
Northern Italy may further affect supplies of Parmigiano-Reggiano
cheese which ages for two years. CWT accepted eight requests for
export assis-tance this week to sell a total of 1.938 million
pounds of Cheddar and Monterey Jack cheese to customers in Asia,
North Africa and the Middle East. The prod-uct will be delivered
through November and raised CWTs 2012 cheese exports to 56.6
million pounds plus 44.3 million pounds of butter and anhydrous
milkfat to 27 countries. Churning activity the last week of May
increased as surplus cream volumes, especially over the holi-day
weekend, were heavier, USDA said. Many but-ter producers did
indicate that weekend cream of-ferings were not as heavy as
anticipated. Some ice cream manufacturers maintained steady
production during the holiday period, which is often not the case
during a holiday weekend. Surplus cream offers further declined
early in the week as Class II operations, which reduced produc-tion
schedules during the holiday period, resumed
production. In most instances, current churning schedules are
keeping pace with demand although butter continues to clear to
inventory. Butter demand is seasonally fair to good. Retail buyers
continue to report features which are clearing good volumes of
print butter. Nationally, advertised butter prices from the
Na-tional Dairy Retail Report showed a weighted aver-age price of
$2.49 per pound compared to $2.57 two weeks prior. Featured prices
ranged from $1.49 in the Midwest to $3.49 in the Northeast. Food
service orders are increasing as resort and vacation areas across
the country prepare for the summer vacation season, USDA said.
AMS-surveyed powder averaged $1.0957, down 3.6 cents, and dry whey
averaged 51.66 cents, down 0.7 cent. Advertising or not, uid milk
sales continue to slide. The June 1 California Milk Producers
Coun-cil (MPC) newsletter pointed out that bottling plants used
less than their share of the milk supply sim-ply because, once
again, uid milk sales fell by far more than had been the normal
case for oh so many years. Preliminary gures from federal order
areas show class 1 usage in April was down 4.4 percent from April
2011, according to the MPC, and Califor-nia class 1 sales were down
2.9 percent. MPC adds that Only two out of the last 30 months have
U.S. class 1 sales been higher than the year before, and one of
those was February, helped by an extra day of sales. Checking the
international dairy scene; the June 5 Global Dairy Trade-weighted
index for all dairy products soared 13.5 percent from the index on
the May 15 auction, according to FC Stones eDairy In-sider Closing
Bell (ICB). Anhydrous milkfat led the GDT price increase, with
August up 43.6 percent and the average across all contracts from
August through December up 24.4 percent from May 15 prices. The
average anhydrous milkfat price on the May 15 event had plunged
11.6 percent from May 1. Most other products on the GDT gained. The
increases across all contract periods were 21.3 per-cent for skim
milk powder, 19.6 percent for rennet casein, 10.9 percent for milk
protein concentrate, 9.4 percent for cheddar cheese, and 8.5
percent for whole milk powder. The only decline was for lac-tose,
down 1.3 percent, according to the ICB. Meanwhile; the Policy Wars
continue as the House Ag Committee looks at the new Farm Bill. A
press release this week from the National Fam-ily Farm Coalition
(NFFC) points out that, Dairy farmers across the country struggle
both nancially and emotionally, and charged that the dairy pric-ing
system is clearly broken. They report that the rst ve months of
2012 resulted in declining farm milk prices, putting thou-sands of
dairy farmers out of business and many more on the brink of
economic collapse, adding that the losses hurt not just dairy
farmers and their fami-lies but thousands of farm-related
businesses. Flawed trading practices at the Chicago Mer-cantile
Exchange further diminish the value of struggling dairy farmers
product, according to the NFFC. Ultimately, we rely more and more
on dairy imports, leaving consumers with fewer safe and lo-cal
choices, undermining our nations food security. The NFFC continues
to support S. 1640, the Federal Milk Marketing Improvement Act of
2011,
introduced by Senator Bob Casey (D-PA), andNFFC leaders met with
President Obama in Au-gust 2011 as part of the White House Rural
Council meetings. We continue to call for restructuring thenations
dairy policy to save the family dairy farm, the NFFC concluded. On
the other side of the battle, lawmakers weretold by a Virginia
dairy producer that Dairy farm-ers need Congress to pass a new Farm
Bill now to help provide certainty for making future business
decisions. Those were the words of Sarah Leonard, a
fourth-generation dairy producer from Midland,Virginia, who spoke
on behalf of National Milk at aSenate news conference this week
about the Agricul-ture Reform, Food and Jobs Act of 2012 (the 2012
Farm Bill). On our farm, we dont focus on the latest polls,or whose
campaign is raising the most money, Leonard explained. We focus
instead on how much rain we received last night, how much milk the
cows are generating today, and what the market price ofcorn and
soybeans are. Thats our daily reality. Butpart of that reality is,
we need a new farm bill. Processors, represented by the
InternationalDairy Foods Association (IDFA), remain opposed to any
kind of supply management feature for dairy. Speaking in Wednesdays
DairyLine radio program,IDFAs Jerry Slominski began; Its a standard
jokefor a politician when asked to take a position to say Ive got
friends who are against it and friends who are for it and Im with
my friends. He said he didntblame farmers if they are starting to
feel the sameway about economic studies of the proposed
DairySecurity Act (DSA). He criticized a recent study of the DSA
conduct-ed by Dr. Scott Brown, charging that Brown usedstochastic
modeling to predict that the new milk sup-ply management program
would seldom be in effectand that exports and milk prices would be
nearly un-changed. Stochastic literally means involving guesswork
or conjecture, Slominski explained. Instead of conjecture about
what will happen,Drs. Andy Novakavic and Mark Stephenson lookedat
data from the past ve years to see what actually would have
happened, Slominski said. They found the supply management program
would have been ineffect nearly 20 percent of the time. They also
found that farmers of nearly everysize would have had more money
withheld under thestabilization program than payments received
underthe margin protection plan. Only if cows are culled and feed
savings accounted for did farmers end up inthe black under the
program, he said. He added that Farmers can cull cows, dry cowsoff
earlier or reduce feed in order to reduce produc-tion and save
costs. Yet, every one of those optionshave long term implications
for a farms milk pro-duction, and its very possible that many
farmerswont reduce production at all. In those cases, theDairy
Security Act directly results in lower net in-come to a farm, not
more. Producers would be better off if Congressdropped the supply
management plan and offered a stand-alone margin protection plan,
Slominski con-cluded. Premiums would be slightly higher, but
producers would not have money withheld fromtheir milk checks due
to the stabilization program, nor would producers have to decide
whether or notto adjust milk production in the short run and how.
This can easily be done by Congress without bustingthe budget.
Dairy Star Second Section Saturday, June 9, 2012 Page 15
New Holland introduces eleven new ways to make the perfect bale
the NEW BR7000 Series round balers. Eleven distinct models use the
patented
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EDGEWRAP OPTION CREATES BALES THAT ARE EASIER TO HANDLE, MOVE
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2009 CNH America LLC. New Holland is a registered trademark of
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Case IH SC416, #0150037 - $8,800
99 NH 1475, #625351$8,500
Pottinger Eurotop 801, #801 - $12,500
07 Vermeer WRX18, #125 - $8,900
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05 Case IH RBX563, #Y5N011512 - $18,900
94 Vermeer 605K , #1001952- $7,900
09 Vermeer 605SM, #126 - $29,500
Case IH LBX332, #324572004 - $49,900
NH 311, #650194 $4,500
02 NH BB940P, #234242004 - $59,500
97 Ford 8670, #D413790 - $46,000
07 McCormick MTX135, #JJE3338117 - $58,900
TG 305 - Just In
02 Buhler Versatile 2145, #500221 - $55,000
97 Cat CH65D, #2ZJ20461 - Call
JD 8570, #8570 $60,000
Allis-Chalmers D17, #65418 - Call
07 NH TC40A, #Z7DB04410 - $14,500
NH TC55DA, #HX12093 $17,500
01 NH TV140, #RVS019057 - Call
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..............................$10,90089 NH 499, #533992
...........................$6,90084 NH 499, #479499
...........................$6,900NH 499, #617762
...................................$8,500
ROUND BALERS01 Gehl 2580, #12468 .......................$7,90000
NH 658, #990498 .........................$12,900
97 NH 664, #958637 ..........................$11,900NH 852,
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SQUARE BALERS93 Hesston 4900, #01069 .............$23,500JD 24T,
#24T ............................................ $1,500
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MTX135, #5083..........$63,500McCormick XTX145, #41066
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