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www.thelandonline.com — “Where Farm and Family Meet”
THE LAND — JUNE 24/JULY 1, 2022
Dairy margins continue to weaken despite futures pricing MIELKE, from pg. 11 age fell 1.3 percent after inching up 1.5 percent on June 7 — ending five consecutive declines prior to that. Cheddar led the declines, dropping 9 percent after falling 3.6 percent in the previous event. Anhydrous milkfat was down 4.7 percent after gaining 2.7 percent, and whole milk powder was off 0.6 percent following a 0.3 percent slip. Butter was up 2.4 percent which follows a 5.6 percent advance, and skim milk powder was up 1 percent after a 3 percent rise last time. StoneX says the GDT 80 percent butterfat butter price equates to $2.7496 per pound U.S. This is up 6.5 cents after gaining 14.1 cents in the previous event, and compares to Chicago Mercantile Exchange butter which closed June 24 at $2.9150. GDT cheddar, at $2.2114, was down 22.2 cents after losing 12.3 cents last time, and compares to June 24’s CME block Cheddar at $2.09. GDT skim milk powder averaged $2.0573 per pound, up from $1.9231. Whole milk powder averaged $1.8713 per pound, down from $1.8861. CME Grade A nonfat dry milk closed June 24 at $1.79 per pound. n Indications are the elephant in the room is still not in the room; meaning lack of China’s purchases plays a big role in the GDT. May dairy imports likely reflect that much of China’s population was in lockdown. Whole milk and skim milk powder imports totaled just 162.9 million pounds, down 36.9 percent from May 2021. Whey products totaled 98.3 million pounds, down 39.3 percent, although HighGround Dairy points out that China increased whey and nonfat dry milk imports from the United States — thanks to our competitive prices. Butter imports amounted to 16.8 million pounds, down 26.5 percent. However, HighGround Dairy says China continues to lock in product at the GDT “indicating supplies are tight.” Cheese totaled 37 million pounds, up 2.6 percent. HighGround Dairy says the pairing with larger purchases of fat on GDT, hint toward an inventory rebuild for foodservice — especially with May cheese imports moving counter-seasonally to the upside. HighGround Dairy adds New Zealand’s exports to China nearly halved from a year ago, down 46 percent. Whole milk powder saw the steepest losses, down 66 percent, skim milk powder fell 51 percent, fluid milk down 20 percent, and butter was down 44 percent from 2021. n Back home, the July Federal order Class I base milk price was announced by the USDA at $25.87 per hundredweight, unchanged from the record-
high June price, but $8.45 above July 2021. The seven-month average sits at $23.69, up from $16.31 a year ago, $15.94 in 2020, and $16.12 in 2019. Block cheese fell for the fifth week in a row at the CME, closing the Juneteenth holiday-shortened week at $2.09 per pound. This is down 5.5 cents on the week, 30.25 cents below its recent peak, but still 60 cents above a year ago. The barrels finished at $2.1475, down a penny, sixth week of loss, 29.25 cents below its peak, but 65.75 cents above a year ago, and 5.75 cents above the blocks. There were three sales of block on the week at the CME and only one of barrel. While cheese producers continue to face labor and supply chain shortages, milk availability is moving in the other direction, according to Dairy Market News. Spot milk prices fell as low as $5 under Class, with no expectation of change before the July 4th holiday. Plants continue to work through widely available milk while having lighter employee numbers. Demand for cheese is trending lower across both retail and food service markets, in the West. Restaurants are reducing operating hours due to high food costs, reduced consumer spending, and labor shortages. Export demand remains strong. Cheesemakers are running busy schedules, as Class III milk remains available, though some remain below capacity due to labor shortages and delayed deliveries of production supplies, according to Dairy Market News. n Cash butter oscillated some, but closed the last Friday of June at $2.915 per pound. This is 2.5
cents lower, but $1.1975 above a year ago on 17 sales for the week. Central butter makers say cream is still “reachable,” despite stronger ice cream production; but some loads are easier to pull from the Rocky Mountain region. Butter prices near $3 prompted a push of production; but week after week, regular reports of employee shortages continues to depress full output. Butter demand is quiet, as expected in the early days of the summer, but there remains a concern that late summer/early fall demand will outweigh availability. Inventories are balanced now, says Dairy Market News, “but expectations are unclear moving into a hot summer with clear expectations of lower milkfat output at the farm.” Western butter makers say cream remains available, but declining milk output due to warmer weather is contributing to tighter inventories. Cream demand is steady as butter makers try to build inventory. Higher retail butter prices are contributing to a decline in sales and food service demand is softening as restaurants reduce hours. Market sentiments remain bullish and prices expected to rise in the coming months, says Dairy Market News. Grade A nonfat dry milk closed June 24 at $1.79 per pound. This is down a penny on the week, but 52.5 cents above a year ago, with seven cars finding new homes. Dry whey fell to a June 24 finish at 47.5 cents per pound. This is 3.25 cents lower and 10.25 cents below a year ago, with 14 sales reported on the week at the CME. See MIELKE, pg. 14
How wet fields can affect soil nutrients ST. CLOUD Minn. — Heavy rains have affected crop producers this season by delaying their planting date due to wet and uneven fields. The rains may have also caused soil erosion and changes to the available nutrients in the soil. Crop producers may need to reevaluate their nutrient management plan this year to be able to maximize yields. Excessive rainfall can cause changes in nitrogen, potassium and phosphorus levels in crop fields. Nitrogen in water-saturated soils has the potential to go through denitrification and be converted into its gaseous form and escape into the atmosphere. Other water-soluble nutrients in watersaturated soils can be leached past the crops rooting depth — making it unavailable for crops to utilize. Other nutrients which are not water soluble, like potassium or phosphorus, can be moved by soil erosion and may be very low or very high in some areas of your field. Phosphorus levels can also be affected by decreasing populations of microorganisms responsible for promoting phosphorus.
Increases and decreases of nutrients in the soil can cause nutrient deficiencies or toxicities in crops. Soil testing of fields can help you determine how to manage the nutrients in your field. It can tell you what your nutrient levels are in your field and whether you will need to add fertilizer or not to maximize crop yields. However, soil tests may not be able to account for all available potassium and phosphorus. Some of the nutrients will react with the soil to convert to forms which cannot be detected in a soil test. If you have decided not to plant cash crops this year, planting a cover crop will help protect your soil from further erosion and encourage the growth of microorganisms essential for nutrient cycling. Following these steps will help you properly manage the nutrients in your field and promote soil fertility. For more information on soil testing visit z.umn. edu/soiltest. This article was submitted by Kaitlyn Czeck, University of Minnesota Extension. v
