THE LAND — FEBRUARY 5/FEBRUARY 12, 2021
www.thelandonline.com — “Where Farm and Family Meet”
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Butter production remains busy thanks to retail demand MIELKE, from pg. 14 29 cents below that week a year ago. The barrels finished Feb. 5 at $1.50 per pound, up 11 cents on the week, 2.25 cents above a year ago, and reduced the spread to 14 cents. Nineteen cars of block were traded on the week at the CME and 14 of barrel. StoneX Dairy’s Feb. 5 “Early Morning Update” stated, “With uncertain government purchases and the potential for increased food service business in the coming months, it seems 0.5 percent cheese production growth (Dairy Products report) is not enough to give cheese buyers peace of mind.” Cheese contacts tell Dairy Market News that spot milk offers were quieter than in recent weeks, but far from tight. Prices for spot milk remain at strong discounts. Cheese production is busy as managers keep ahead of the milk by producing cheeses that require aging. Winter weather hit the Northeast and added stress for Midwestern cheese producers who provide for restaurants which will not be able to offer outdoor dining for the near term. Dairy Market News says, “There are a myriad of questions regarding near and long-term market conditions, as contacts’ outlooks are foggy.” Western cheese is widely available and inventories are growing for most varieties as cheese output also tries to keep pace with the available milk. Cheese supplies are outpacing demand as retail sales decreased following the holidays and pizza cheese demand has eased some with the football season ending. The Super Bowl is characteristically the biggest cheese-selling time of the year, and hopefully that’s still the case. Food service demand has yet to see much improvement — even as some areas relax Covid restrictions on restaurants. Dairy Market
News says, “Government purchases can help clean up some of the cheese stocks; but market observers are also wary of the impact that additional purchases can have on price volatility.” n Butter dropped 3.5 cents on Feb. 1 to $1.21 per pound (the lowest since May 5) but jumped 8.25 cents the next day, spurred by the GDT, and ended Feb. 5 at $1.2675. This is up 2.25 cents on the week, but 56.5 cents below a year ago, on 23 sales. Cream prices remain within reach for butter makers in the Central region, says Dairy Market News, but steadily growing ice cream production has some contacts reporting slight upticks on the multiples. Plant managers have said they are using primarily internally sourced cream, which is abundant. Butter production remains busy, although food service demand is “a shell of its pre-Covid-19 self,” says Dairy Market News. But retail demand has covered some of the lost ground. A few producers report February has picked up some steam regarding bulk butter sales. Dairy Market News stated, “There are only a few weeks of old crop butter trading left on the CME, which typically offers at least a short-term bullish shift.” Western cream supplies are increasing seasonally and churns are on full schedules in many cases. Butter inventories are adequate for some, but heavier than anticipated for others, though domestic butter demand is described as good. Grade A nonfat dry milk fell to $1.09 per pound on Feb. 4 (the lowest since Nov. 24) but saw a Feb. 5 finish at $1.12. This is down 5.25 cents on the week and 13 cents below a year ago. A whopping 60 carloads exchanged hands on the week, including a single day record of 33 on Feb. 3.
Virtual dairy beef short course March 23 The I-29 Moo University Collaboration’s 7th annual Dairy Beef Short Course will held on March 23. Due to Covid-19 it will be offered as a webinar. There will be a morning session from 10 a.m. to noon, followed by the afternoon session from 1 p.m. until 3 p.m “Presenters at this year’s Dairy Beef Short Course are industry leaders who will provide insight into factors influencing dairy beef performance along with looking at the future of dairy beef production from a consumer and economic perspective,” said Tracey Erickson, South Dakota State University. The morning speakers include Tara Felix, Penn State University discussing the role of nutrition and implants in dairy beef performance and Phil Durst, Michigan State University discussing how employee management influences animal performance. In the afternoon, Bill Halfman from University of
Wisconsin will present the performance factors influencing profitability and Lisa Scebbi from JBS US will talk about taking advantage of future consumer trends to optimize market opportunities for dairy beef. To register, go to https://tinyurl.com/y8t3puur. The registration fee is $25 and will be payable on-line. Webinar links will be sent by email before the event. An electronic copy of the proceedings will also be emailed to participants at the conclusion of the webinar along with access to the recordings of the two sessions. For more information, go to https://dairy.unl.edu/i29-moo-university or contact Tracey Erickson at (605) 882-5140 or tracey.erickson@sdstate.edu; or Fred Hall at (712) 737-4230 or fredhall@iastate.edu. This article was submitted by University of Minnesota Extension. v
StoneX says, “The conventional wisdom this year is that the slack in domestic powder demand was balanced by strong global markets. That dynamic likely still exists, but we do wonder if price weakness, even modest price weakness, on nonfat dry milk will increase domestic usage. With plenty of fluid milk available we don’t expect to hear about fortifying the cheese vats now, but maybe there is an attraction to the storability of powder.” Dry whey held all week at 53.5 cents per pound, 14.5 cents above a year ago, with just one sale reported on the week at the CME. n See MIELKE, pg. 18
