Mielke Market Weekly

Harsh weather, high beef prices leading to culling of herds

AM1 – Optimum® AcreMax® 1 insect protection system with an integrated corn rootworm refuge solution includes HXX, LL, RR2. Optimum AcreMax 1 products contain the LibertyLink® gene and can be sprayed with Liberty® herbicide. The required corn borer refuge can be planted up to half a mile away. AM – Optimum® AcreMax® insect protection system with YGCB, HX1, LL, RR2. Contains a single-bag integrated refuge solution for above-ground insects. In EPA-designated cotton-growing counties, a 20% separate corn borer refuge must be planted with Optimum AcreMax products. AMT – Optimum® AcreMax® TRIsect® insect protection system with RW,YGCB,HX1,LL,RR2. Contains a single-bag refuge solution for above- and below-ground insects. The major component contains the Agrisure® RW trait, the Bt trait, and the Herculex® I gene. In EPA-designated cottongrowing counties, a 20% separate corn borer refuge must be planted with Optimum AcreMax TRIsect products. AMX – Optimum® AcreMax® Xtra insect protection system with YGCB, HXX, LL, RR2. Contains a single-bag integrated refuge solution for above- and below-ground insects. In EPA-designated cotton-growing counties, a 20% separate corn borer refuge must be planted with Optimum AcreMax Xtra products. AMXT (Optimum® AcreMax® XTreme) – Contains a single-bag integrated refuge solution for above- and below-ground insects. The major component contains the Agrisure® RW trait, the Bt trait and the Herculex® XTRA gene. In EPA-designated cotton-growing counties, a 20% separate corn borer refuge must be planted with Optimum AcreMax XTreme products. Q (Qrome®) – Contains a single-bag integrated refuge solution for above- and below-ground insects. The major component contains the Agrisure® RW trait, the Bt trait, and the Herculex® XTRA gene. In EPA-designated cotton-growing counties, a 20% separate corn borer refuge must be planted with Qrome products. Qrome products are approved for cultivation in the U.S. and Canada. They have also received approval in a number of importing countries, most recently China. For additional information about the status of regulatory authorizations, visit http://www.biotradestatus.com/. YGCB,HX1,LL,RR2 (Optimum® Intrasect®) – Contains the Bt trait and Herculex® I gene for resistance to corn borer.

YGCB,HXX,LL,RR2 (Optimum® Intrasect® Xtra) – Contains the Bt trait and the Herculex® XTRA gene for resistance to corn borer and corn rootworm. RW,HX1,LL,RR2 (Optimum® TRIsect®) – Contains the Herculex® I gene for above-ground pests and the Agrisure® RW trait for resistance to corn rootworm. AML – Optimum® AcreMax® Leptra® products with AVBL, YGCB, HX1, LL, RR2. Contains a single-bag integrated refuge solution for above-ground insects. In EPA-designated cotton-growing counties, a 20% separate corn borer refuge must be planted with Optimum AcreMax Leptra products. AVBL,YGCB,HX1,LL,RR2 (Optimum® Leptra®) – Contains the Agrisure Viptera® trait, the Bt trait, the Herculex® I gene, the LibertyLink® gene and the Roundup Ready® Corn 2 trait. HX1 – Contains the Herculex® I insect protection gene which provides protection against European corn borer, southwestern corn borer, black cutworm, fall armyworm, lesser corn stalk borer, southern corn stalk borer, and sugarcane borer; and suppresses corn earworm. HXRW – The Herculex® RW rootworm protection trait contains proteins that provide enhanced resistance against western corn rootworm, northern corn rootworm and Mexican corn rootworm. HXX – Herculex® XTRA contains the Herculex® I and Herculex® RW gene. YGCB – The Bt trait offers a high level of resistance to European corn borer, southwestern corn borer and southern cornstalk borer; moderate resistance to corn earworm and common stalk borer; and above average resistance to fall armyworm. LL – Contains the LibertyLink® gene for resistance to Liberty® herbicide. RR2 – Contains the Roundup Ready® Corn 2 trait that provides crop safety for over-the-top applications of labeled glyphosate herbicides when applied according to label directions. AQ – Optimum® AQUAmax® product. Product performance in water-limited environments is

variable and depends on many factors such as the severity and timing of moisture deficiency, heat stress, soil type, management practices and environmental stress as well as disease and pest pressures. All products may exhibit reduced yield under water and heat stress. Individual results may vary.

Roundup Ready® is a registered trademark used under license from Monsanto Company. Liberty®, LibertyLink® and the Water Droplet Design are registered trademarks of BASF. Agrisure® and Agrisure Viptera® are registered trademarks of, and used under license from, a Syngenta Group Company. Agrisure® technology incorporated into these seeds is commercialized under a license from Syngenta Crop Protection AG.

Pioneer® brand products are provided subject to the terms and conditions of purchase which are part of the labeling and purchase documents. TM ® Trademarks of Corteva Agriscience and its affiliated companies. © 2021 Corteva. News and information for Minnesota and Northern Iowa dairy producers

This column was written for the market- at $2.7250. This is down 1.75 cents on the ing week ending Jan. 14. week, but $1.4350 above a year ago.

After lowering estimates for 2021 and Twenty-eight sales were reported. 2022 milk production for six consecutive Central butter churning is busy despite months, the U.S. Department of Covid-related worker issues — even as Agriculture left its latest projection cream supplies slowly tighten. Cream unchanged in the Jan. 12 World prices are slowly edging higher after the Agricultural Supply and Demand seasonal holiday abundance. Bulk butter Estimates report. MIELKE MARKET is tight and end users are paying for it.

Meanwhile, in the week ending Jan.1, WEEKLY Retail demand is keeping butter mak2022, 52,400 dairy cows were sent to slaughter, up 4,900 from the previous By Lee Mielke ers busy and market tones are “resolutely bullish,” says Dairy Market News. week and 300 head or 0.6 percent above a International butterfat values are also year ago. The four-week average was up 1.08 per- climbing. Contacts expect market tones will sustain cent from a year ago. this pressure for longer than just the near term.

Dairy prices were mixed the second week of 2022. n The cheddar blocks climbed to $2.0525 per pound on Jan. 12 (the highest since Nov. 12, 2020) but dropped from there to a Jan. 14 close at $1.92. This is down 7.5 cents on the week and 9 cents above a year ago. Grade A nonfat dry milk shot up to a Jan. 14 finish at $1.815 per pound. This is up 10.5 cents on the week (the highest since June 25, 2014) and 61.5 cents above a year ago. Thirteen sales transpired on

The barrels finished at $1.96, 9.5 cents higher on the week. The record Chicago Mercantile Exchange the week, the fourth week of gain and highest since price high is $2.16 per pound on Dec. 5, 2007. Nov. 11, 2020, 38.75 cents above a year ago, and 4 cents above the blocks. There were four sales of block on the week and seven of barrel. CME dry whey kept creeping higher and closed on Jan. 14 at a new record-high 77 cents per pound. This is up 1.25 cents on the week and 24 cents above

Spot milk availability for cheesemakers varies in a year ago, with three sales reported for the week. the Central region, according to Dairy Market News. Some say milk offers are quiet and there is a general sense of balanced supplies. Still, holiday level discounts were being offered in other parts. In some cases, the discounts were due to neighboring plants being shorthanded. Bottling was also starting to affect milk availability as a growing number of cheesemakers say they were being asked to resell Dairy analyst and editor of the Dairy and Food Market Analyst newsletter, Matt Gould, said in the Jan. 17 “Dairy Radio Now” broadcast these higher dairy prices will likely be around for a while. He said Covid has kept new plants from being built; so we won’t have an increase in supply of cheese or whey products. milk into Class I. Gould added that feed prices have been high and Reported higher culling rates are being blamed on harsh winter conditions and stronger beef prices, according to Dairy Market News, and there are expectations that milk accessibility will begin to margins very challenging, so “There is no wall of milk in the dairy universe right now. Milk is tight in the U.S., milk is tight in Europe and in New Zealand, and that’s a recipe for high prices.” decrease. Cheesemakers report mixed demand, but When asked if the resulting high milk prices will markets are strong despite the wide gap between find their way to the farm and not be derailed like blocks and barrels. High market prices may slow what happened in 2020 (due to de-pooling and high overall demand, warned Dairy Market News, but producer price differentials), Gould answered, “This contacts suggest “the short term picture is being time around, farmers are definitely going to benepainted with a bullish brush.” fit.” While he admitted there is a lag before they Butter climbed to $2.8425 per pound Jan. 11 (the highest since Dec. 7, 2015) but the rising star show up in the milk check, “The first half of 2022 is going to have pretty solid margins.” reversed direction the next day and closed Jan. 14 See MIELKE, pg. 15