THE LAND — AUGUST 6/AUGUST 13, 2021
MILKER’S—MESSAGE www.thelandonline.com “Where Farm and Family Meet”
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All milk price continues slide, milk/feed ratio is down MIELKE, from pg. 18 plunged 54.75 cents, largest week-to-week block price fall ever. The barrels fell to $1.3075 per pound on Aug. 4 (the lowest since May 11, 2020), but closed Aug. 6 at $1.31. This is down 8 cents on the week and 20.75 cents below a year ago when they plunged to $1.5175 per pound — a record 71.75 cent crash. The spread expanded to 32.75 cents on Aug. 3. Only 19 cars of barrel were sold on the week. Midwest cheesemakers tell Dairy Market News week-to-week sales remain strong as product moves quickly into food service and grocery channels. Milk remains available at discounts but not as low as previous week. Bottling demand increases are chipping away at fluid supplies as schools ramp up. Cheese output remains busy and Midwest inventories are not overly concerning, says Dairy Market News. Western retail and food service cheese markets remain steady and international demand remains strong; but port congestion continues to cause delays. Spot butter shot up 5.75 cents on Aug. 2, then plunged 8 cents the next day, and closed Aug. 6 at $1.6475 per pound. This is a half-cent higher on the week and 11.75 cents above a year ago. There were 19 sales reported for the week.
Butter plants report cream is still attainable with multiples remaining in the low 1.20s and readily available from western states. Retail sales have picked up a bit following a mid-summer lull but butter market tones are anything but stable. Western cream production is trailing off. More abundant cream supplies, particularly in the southwest, are supporting busier butter output. Churns are less active in other areas where cream is short or cream cheese production is taking more of the supply. Retail sales are strengthening and food service is steady. Grade A nonfat dry milk closed Aug. 6 at $1.2550 per pound, down 1.25 cents on the week, but 30 cents above a year ago, with 10 sales reported on the week. Dry whey fell to 47.50 cents per pound on Aug. 5, (the lowest since Jan. 4), but rallied to an Aug. 6 close at 54 cents per pound. This is up 3.75 cents on the week (the highest since July 2), and 22 cents above a year ago. Seven sales were reported for the week. A lower all milk price and higher corn price continued the slide in the U.S. milk feed ratio. The USDA’s latest Ag Prices report showed the June ratio at 1.60, down from 1.69 in May, and compares to 2.38 in June 2020. The U.S. all milk price averaged $18.40 per cwt., down 80 cents from May, but 20 cents above the June 2020 average. The national average corn price climbed to $6.00 per
bushel, up 9 cents from May, after jumping 60 cents from April, and $2.84 per bushel above May 2020. Soybeans averaged $14.50 per bushel, down 30 cents from May and the first decrease since August 2020, after jumping 90 cents last month, but are still $6.16 per bushel above June 2020. Alfalfa hay averaged $199 per ton, up $5 from May and $20 above a year ago. n Looking at the cow side of the ledger, the June cull price for beef and dairy combined averaged $73.90 per cwt., up $3.10 from May, $2.90 above June 2020, and $2.30 above the 2011 base average of $71.60 per cwt. Milk cow replacements averaged $1,310 per head in July, unchanged from April and unchanged from July 2020. Cows averaged $1,350 per head in California, down $50 from April and unchanged from a year ago. Wisconsin’s average, at $1,480 per head, was down $10 from April but $130 per head above July 2020. The Aug. 3 Daily Dairy Report points out dairies are also dealing with rising transportation and labor costs. The Daily Dairy Report cited U.S. No. 2 retail diesel for the week of Aug. 2 at $3.37 per gallon, 94 cents higher than a year ago. The June margin under the Dairy Margin Coverage See MIELKE, pg. 22
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