National all-milk prices on steady multi-month plane
There was little change in the national all-milk price for June compared to May but somewhat of a dip is likely for July, according to the latest dairy pricing and market statistics.
The National Agricultural Statistics Service monthly report issued early this week put the weighted national all-milk average price for June at $19.70 per hundred - the same as for May but $3.30 per hundred more than in June of 2012.
The national base Class I fluid milk price for July is $18.91 per hundred - down by 2 cents from June.
Wisconsin's all-milk price continued to run ahead of the national level, settling at an estimated $20.40 per hundred for June - also the same as for May.
One difference is that the average butterfat content in the state's milk shipments slipped to 3.7 percent for June from 3.76 percent in May.
In other states, the major changes in the May to June all-milk prices were decreases from $18.33 to $17.90 per hundred in California and from $19.10 to $18.80 in Idaho.
On the up side, May to June all-milk prices rose by 40 cents per hundred to $21.40 in Pennsylvania and to $20.90 in New York and by 30 cents to $20.30 in Michigan and to $18.50 in New Mexico.
The overall stability in the price structure was indicated by the latest calculated milk to feed price ratio of 1.53 for June - the same as for May.
Based on a dairy ration of 16 percent protein, the June ratio used the $19.70 all-milk price along with slight cost increases to $7.02 per bushel for shelled corn and to $15.10 for a bushel of soybeans along with a $1 per ton decrease to $220 for dry alfalfa hay.
After slumping in recent weeks, dairy commodity prices and spot market sales on the Chicago Mercantile Exchange staged an upturn during the first two days of this holiday-shortened trading week.
There was an across the board jump in prices on Tuesday of this week but those increases were not reflected in the day's Class III milk futures.
Cheddar cheese blocks gained 2.25 cents per pound on Tuesday to close at $1.6625 per pound. The day's activity included eight carload sales to bring the total for the first two days of this week to 12.
The sale of six carloads of Cheddar cheese barrels on Tuesday brought the two-day total to 13. With the help of an unfilled bid to buy two carloads and an uncovered offer to sell one carload, the day's price gained 4 cents per pound to close at $1.65.
AA butter joined the crowd with an increase of 2.25 cents per pound to $1.50 as four carloads were sold, following a similar volume on Monday of this week. The Tuesday activity also included one unfilled bid to buy and one uncovered offer to sell.
Both Grade A and Grade Extra non-fat dry milk posted 1-cent per pound gains on Tuesday in the spot market to close at $1.74 and $1.71 per pound respectively. There were unfilled bids for three carloads of Grade A and for one of Grade Extra.
Minimal activity marked the dry whey futures market on Tuesday but prices increased for the contracts that were completed. Prices on the trading board stood at between 56 and 58 cents per pound for the remaining months of 2013 and in the lower 50s for the first quarter of 2014.
What stood out in contrast during the Tuesday market session was the minor reaction in the Class III milk futures market to the increase in dairy commodity prices.
The largest price changes were a decrease of 11 cents per hundred for August of 2014 and increases of 9 and 10 cents per hundred for later months in 2014.
In Tuesday's Class III futures trading session, prices were at $18.04 per hundred for the end of trading for June futures, $17.30 for July, the $18s for August through November of 2013, and in the $17s per hundred from all months from December 2013 through December of 2014.
Cooperatives Working Together has accepted a group of 16 bids from Dairy Farmers of America, United Dairymen of Arizona, and Darigold Cooperative of Seattle.
The bids were for financial assistance on the export of 2.361 million pounds of Cheddar, Gouda, and Monterey Jack cheese and 665,796 pounds of butter to countries in Asia, North Africa, and the Middle East. Deliveries are scheduled from July to December.