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Wisconsin's all-milkprice tops $23 per hundred again for November

Dec. 6, 2012 | 0 comments

For the second consecutive month, the average all-milk price that Wisconsin's dairy farmers will receive will top $23 per hundred.

According to a report early this week by Wisconsin field office of the National Agricultural Statistics Service, the anticipated average all-milk price (before the customary deductions) for November milk shipments by the state's dairy farmers will be $23.40 per hundred.

This is an increase of 30 cents from October and is $1.30 more than the average all-milk price for November across the United States.

Except for California, whose all-milk price is expected to drop by 3 cents to $19.40 from October to November, all of the top 23 milk production states will have a price increase from October to November.

Among the top 10 states, other predicted all-milk average prices for November are $23.90 per hundred in Minnesota, $23.80 in Pennsylvania, $22.80 for both New York and Texas, $22.70 for Michigan, $21.80 for New Mexico, and $21.60 for Idaho.

The highest butterfat average tests in many months are providing a bit of a boost to the milk prices for November. Among the average tests for the month are 3.96 percent in Texas, 3.94 in Minnesota, and 3.9 percent in Wisconsin.

Based on the November all-milk and feed prices, a milk to feed cost ratio of 1.79 was calculated, culminating a steady rise from the low ratio of 1.34 in July.

In addition to the $22.10 per hundred national all-milk price, the numbers used to calculate the ratio were $6.71 per bushel of shelled corn, $13.80 per bushel of soybeans, and $215 per ton of dry alfalfa hay.

Following the November price crescent, however, a decline in milk prices is on the horizon. Prices for Cheddar cheese and AA butter have been falling steadily in recent weeks in the spot market on the Chicago Mercantile Exchange.

That trend continued into this week with the spot market price for Cheddar cheese barrels slipping by another 2.25 cents per pound on Wednesday.

This put the day's closing price at $1.68 per pound following a trading session with three carload sales and an unfilled bid to buy one carload.

The Cheddar cheese block market remained quiet on Wednesday with the price holding at $1.76 per pound. This was down by 6.50 cents from a week earlier due to a price fall of that amount on Friday, Nov. 30.

Most of the trading action on the spot market through Wednesday of this week was with AA butter.

Eight carloads were sold on Wednesday to make a total of 17 sales for the first three days of the week, a bid for another six carloads was not filled, and a bid to buy one carload was not filled.

For the day, the price rose by .50-cent per pound to close at $1.5850 - down by 3.75 cents from a week earlier.

Non-fat dry milk spot market prices remain at $1.56 per pound for Grade Extra and $1.5575 for Grade A with no market activity in recent weeks.

Within minimal losses and gains on Wednesday of this week, the Class III milk futures were solidly in the $18s per hundred for all months from December 2012 through December of 2013. Then they drop to below $16 per hundred by May of 2014.

A recent report, current through November 17, indicated a federally-inspected slaughter of 2.732 million dairy cows so far during 2012. This was an increase of 6.4 percent compared to the same period in 2011. The total for week ending November 17 was 65,300 head.

Cooperatives Working Together has announced the acceptance of a package of 10 bids from Bongard's Creamery, Dairy Farmers of America, Darigold Cooperative, the Maryland and Virginia Milk Producers Cooperative, and the Michigan Milk Producers Association.

The bids were for financial assistance on the export of 1.285 million pounds of Cheddar and Monterey Jack cheeses, 1.058 million pounds of butter, and 85,890 pounds of whole milk powder to countries in Asia and the Middle East on deliveries scheduled from December to February of 2013.

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