Wisconsin fares well
on milk price for July
While the milk production from their herds was probably down by a few percentage points during the month due to several periods of high temperatures and humidity, Wisconsin's dairy farmers are receiving a price approximately $1.40 per hundred above the national average for the milk they shipped in July.
According to the Wisconsin field office of the National Agricultural Statistics Service, the average all-milk price for the state in July should be $18 per hundred - up 90 cents from June. The next highest increases from June to July were 70 cents in both Arizona and Washington.
Among the top 10 milk production states, Minnesota matches Wisconsin for the average all-milk price in July.
The national average for the month was held down to $16.60 per hundred, however, by such projected prices of $14.80 in California, $16 in New Mexico, $16.50 in Idaho, and $16.90 in both Michigan and Texas.
Even Pennsylvania, which usually has a higher price than Wisconsin, came in with a lower projected average of $17.90 per hundred for July. The national Class III milk base cash price for July was $16.68 per hundred.
In the heat and humidity, average butterfat tests fell by .04 percentage point from June to July in most of the top milk production states.
Wisconsin slipped from 3.61 to 3.57 percent, Minnesota from 3.68 to 3.64, and Michigan from 3.52 to 3.50 percent while Texas, with a significant percentage of Jersey cows in its milking herd, held at 3.69 percent butterfat for both June and July.
Based on current Class III milk futures, the July cash price would be surpassed by as much as $3 per hundred for all months through December of 2013.
That was true although the futures prices on Wednesday of this week did not reflect the full extent of the increases during the trading day in the spot market for Cheddar cheese and AA butter on the Chicago Mercantile Exchange.
With jumps of 5 cents per pound for Cheddar blocks and 5.25 cents for Cheddar barrels on Wednesday, the respective closing prices in the spot market were $1.85 and $1.8250 per pound. Those were increases of 14 cents per pound for each commodity this week alone.
During the trading session on Wednesday, eight carloads of blocks were sold and a bid to buy one carload was not filled. The barrel market rode up on one carload sale and one unfilled bid.
The AA butter market followed suit on Wednesday with a 2.5-cent increase to put the day's closing price at $1.7350 per pound. A bid for one carload was not filled and an offer to sell one carload was not covered.
An upward price nonfat dry milk spot market also continued this week with a .50-cent per pound gain for Grade A on one unfilled bid to put the closing price at $1.4050 per pound. A bid for 10 carloads of Grade Extra nonfat dry milk on Wednesday was not filled as the price held at $1.40 per pound.
Although the Class III milk futures were in green ink territory on Wednesday for all months through August of 2013, the highest increase for any month was 21 cents per hundred for October of this year.
With other increases earlier in the week, futures prices stood at $17.63 per hundred for August before jumping to $19.28 for September, $19.83 for October, $19.80 for November, and $19.55 for December.
Class III milk futures then drop back to $19.10 for January of 2013 and into the $18s per hundred for all remaining months of 2013. Then there's a sharp dropoff to $15.55 per hundred for May and June and to $14.85 for July in 2014.
Futures prices for dry whey slipped for nearby months on Wednesday but they still topped 60 cents per pound for the final quarter of 2012. They also stood at above 50 cents per pound through October of 2013.
Cooperatives Working Together has accepted a package of seven bids from Dairy Farmers of America and Darigold Cooperative of Seattle.
These bids were for financial assistance on the export of 2 million pounds of Cheddar and Monterey Jack cheeses and 597,453 pounds of butter to countries in Asia, Central America, and the Middle East. Deliveries are scheduled from August to January of 2013.