Cheese prices reverse course

CME cash cheese prices headed lower again last week as traders absorbed the neutral to bearish December Milk Production and Cold Storage reports. Block Cheddar, after jumping 11 cents the previous week, closed Friday at $1.4725 per pound, down 9 1/4-cents on the week and 21 1/2-cents below a year ago. The barrels finished at $1.32, down 2 1/2-cents and 12 3/4-cents below a year ago. Nine cars of block were sold on the week and 20 of barrel. The blocks were down a half-cent both Monday and Tuesday, slipping to $1.4625 per pound. The barrels held both days at $1.32, an unsustainable 14 1/4-cents below the blocks. Central cheese plant managers are experiencing seasonal slowdowns, according to D

December Farm Prices Received Increases, Prices Paid Inches Up

December Prices Received Index Increased 0.8 Percent The December Prices Received Index (Agricultural Production), at 91.7, increased 0.8 percent from November 2017. At 84.0, the Crop Production Index increased 3.2 percent. The Livestock Production Index, at 99.7, decreased 2.0 percent. Producers received higher prices for corn, lettuce, broilers, and tomatoes but lower prices for milk, oranges, cattle, and market eggs. Compared with a year earlier, the Prices Received Index is up 4.4 percent. The Crop Production Index increased 4.1 percent and the Livestock Production Index increased 5.5 percent. In addition to prices, the indexes are influenced by the volume change of commodities producers

This Week's Drought Summary (1/25)

A westerly flow dominated the upper-level circulation across the contiguous U.S. (CONUS) during this U.S. Drought Monitor (USDM) week. The week began with a frontal system exiting the eastern CONUS, and ended with another Pacific system moving across the country. The systems brought an inch to more than locally 5 inches of precipitation to the coasts and Cascades of northern California to Washington; 1 to 2 inches of precipitation to parts of the northern Rockies and in swaths from eastern Nebraska to the Great Lakes and from southeastern Oklahoma to the Mid-Mississippi Valley; and a few reports of 1 inch or more across parts of the South and Southeast. These amounts translated to above norm

Cheese, powder prices rebound

Cheese and powder prices strengthened during the Martin Luther King Day holiday-shortened week, buoyed in part by last Tuesday’s GDT. The Cheddar blocks closed Friday at $1.5650 per pound, up 11 cents on the week but 13 1/4-cents below a year ago. The barrels finished at $1.3450, up 12 3/4-cents on the week, 19 cents below a year ago, but an unsustainable 22 cents below the blocks. Only 2 cars of block traded hands last week at the CME and 45 of barrel. The blocks inched up a half-cent Monday, as many in the dairy industry are in Palm Desert, Calif., attending the International Dairy Foods Association’s annual Dairy Forum, but they pulled back a penny Tuesday and slipped to $1.56. The barrel

This Week's Drought Summary (1/18)

A significant weather system impacted the lower Mississippi Valley and pushed northeast into the Ohio River Valley and the Northeast. The active pattern over the Pacific Northwest and northern Rocky Mountains continued, bringing much-needed rain and snow to these regions. Cooler than normal temperatures dominated the Plains region and the South, with areas of the northern Plains 15-20 degrees below normal. Warmer than normal conditions dominated the West, with areas of the Great Basin 10-15 degrees warmer than normal. Northeast Temperatures were normal to above normal in New England with widespread precipitation over most of the region except for central Pennsylvania and western New York. Ma

Dairy: Barrels roll to 9-year low

Cash dairy prices fell the second week of the new year. The Cheddar blocks saw daily slippage until Friday when they reversed, gained 1 3/4-cents, and closed at $1.4550 per pound, still down 4 cents on the week and 27 cents below a year ago. Friday’s large crash was the barrels plunging to $1.2175, down 17 1/4-cents on the week, the lowest price since July 30, 2009, 42 1/4-cents below a year ago, and a whopping 23 3/4-cents below the blocks. Six cars of block traded hands last week at the CME and 37 of barrel. The markets were closed Monday for the Martin Luther King holiday but the blocks were up 1 1/4-cents Tuesday, to $1.4675. The barrels jumped 5 3/4-cents and climbed back to $1.2750, 19

Ag outlook remains subdued

Oversupply of agricultural products and unknown trade outlook keeps lid on agricultural economy. The outlook for agriculture remains downbeat but is beginning to show signs of stabilization, according to the latest agricultural outlook released by the Federal Reserve Bank of Kansas City, Mo. Economist Courtney Cowley, writing in the bank’s latest "Ag Outlook" newsletter, stated, “Although farm income was expected to stabilize, growing inventories and trade uncertainty remain key risks to the outlook.” Although farm income appears to have stabilized in the short to longer term, one risk to the outlook has been growing supplies. Yields for corn and soybeans have been above 20-year trend levels

Idaho total net farm income increased 15 percent in 2017

Despite a 2 percent increase in overall farm expenses, net farm income in Idaho increased 15 percent in 2017 due to a 5 percent increase in farm revenues. It was the state’s first increase in net farm income in four years. BOISE — Total net farm income in Idaho rose an estimated 15 percent in 2017, far faster than USDA’s projected 3 percent increase for U.S. agriculture overall. Net farm income, which is revenues minus expenses, represents the farmer’s bottom line. Farm expenses in Idaho rose an estimated 2 percent in 2017 but overall revenue rose 5 percent, according to University of Idaho’s “Financial Condition of Idaho Agriculture” report. That resulted in $1.9 billion in total net farm i

Odds of La Nina lasting through March are 85%

La Nina is likely to persist through the winter, though you wouldn’t know it if you lived in Houston. The weather phenomenon that has historically delivered warmer winters across the southern U.S. is being challenged by another force known as the Madden Julian Oscillation, a pulse of clouds and rain that moves through tropical oceans. The oscillation is pushing cold air into the south, where temperatures in places like Houston are well below average. La Nina can shift weather patterns globally, moving the price of commodities such as coal, soybeans and natural gas. Strong La Ninas have brought flooding rains to Australian coal mining regions, droughts to Brazil’s soybean growing areas and, w

This Week's Drought Summary (1/11)

Dryness continues over most of the country with only isolated areas of above-normal precipitation for this week. The “snow drought” over much of the mountainous western United States is catching more attention, but there is time to make up the poor start to the current water year. Portions of California and coastal Washington did have good precipitation for the week, along with areas of southern Louisiana, east Texas, and southern Mississippi. A significant winter storm brought precipitation to many areas along the east coast from Florida to Maine, but this did not reach too far inland. Over the last 60 days, extensive areas of the country have recorded below 25 percent of normal precipitati

Farmers Are More Pessimistic About the Future

For the second-straight month, the Purdue University/CME Group Ag Economy Barometer dipped lower, coming in with an index of 126 in December. That number was the lowest since March of last year and the second-lowest of 2017. The decline is driven entirely by producers becoming less optimistic about the future. The Future Expectations Index was recently at 137 in October, but fell to 127 in November and dipped to 120 in December. That’s the lowest reading for future expectations since October of 2016. The Index of Current Conditions stands in sharp contrast to the future expectations. The Index of Current Conditions measures the short-term expectations of farmers, which increased in December

New Year unkind to cash dairy prices

Cash dairy prices were mixed in the New Year’s holiday-shortened week. The Cheddar blocks closed the first Friday of 2018 at $1.4950 per pound, down 4 1/2-cents on the week and 17 1/2-cents below a year ago. The barrels finished at $1.39, down 5 1/4-cents on the week and 18 1/2-cents below a year ago. Monday took the blocks down a half-cent, and they dropped 3 1/2-cents Tuesday, to $1.4550. Monday’s loud crash were the barrels dropping 6 1/2-cents. They rolled 2 1/2-cents lower Tuesday, falling to $1.30, the lowest price since May 12, 2016, and at a 15 1/2-cent deficit to the blocks. Dairy Market News reports that some Central cheesemakers are no longer taking spot milk as they have more tha

Ag Prices Received And Paid Increase In November

November Prices Received Index Increased 4.2 Percent The November Prices Received Index (Agricultural Production), at 91.0, increased 4.2 percent from October 2017. At 81.4, the Crop Production Index decreased 1.0 percent. The Livestock Production Index, at 101.7, increased 8.1 percent. Producers received higher prices for market eggs, cattle, hogs, and broilers but lower prices for lettuce, corn, apples, and turkeys. Compared with a year earlier, the Prices Received Index is up 9.1 percent. The Crop Production Index increased 1.1 percent and the Livestock Production Index increased 18 percent. In addition to prices, the indexes are influenced by the volume change of commodities producers m

U.S. dairy exports reach highest levels in more than a year

U.S. dairy exports were valued at $474 million in November, up 8%. U.S. dairy exports in November were the most in more than a year, paced by record shipments of whey products, strong sales of cheese and milk powder and improved volumes of butterfat, reported Alan Levitt, vice president of communications and market analysis at the U.S. Dairy Export Council (USDEC). According to data, suppliers shipped 173,269 tons of milk powder, cheese, butterfat, whey and lactose in November, up 6% from last year and the highest total since October 2016. U.S. exports were valued at $474 million, up 8%. Total whey exports were a record-high 50,590 tons, up 10% versus last year. Sales to Southeast Asia (up 2

January CEO Report - Policy Update From Washington, D.C.

Welcome to the January edition of the CEO Report, POLITICO Pro's high-level outlook on the policy issues driving the month ... and beyond. BUDGET & APPROPRIATIONS Another spending showdown: A shutdown deadline looms this month, more than a quarter of the way into the fiscal year, Pro Budget and Appropriations' Jennifer Scholtes reports. Government funding is now set to run out on Jan. 19, the same day sequestration - or across-the-board spending cuts - will take effect if lawmakers don't strike a deal to lift budget caps. Despite several meetings between top lawmakers and White House officials, leaders have yet to settle on new limits for defense and non-defense spending. Other thorny issues

Idaho farm cash receipts up for first time in three years

University of Idaho ag economists say many farmers are still struggling to make a profit due to low commodity prices. BOISE — Following two years of declines, total farm cash receipts in Idaho are projected to be up 5 percent in 2017. Potatoes, the state’s most famous crop, helped lead the way with an estimated $955 million in cash receipts during the 2017 calendar year, an increase of 13 percent over 2016. Total Idaho farm cash receipts reached an estimated $7.45 billion in 2017, up from $7.1 billion in 2016, according to University of Idaho’s “Financial Condition of Idaho Agriculture” report, which was presented to legislators Jan. 5. Total net farm income in Idaho during 2017 is estimated

This Week's Drought Summary (1/4)

During the 7-day period (ending Tuesday morning), bitterly cold, mostly dry weather prevailed across the nation. However, light to moderate showers were observed along the central Gulf Coast, while moderate to heavy rain and mountain snow were reported in the nation’s northwestern quadrant. At the end of the period, a moderate to deep snowpack extended from the interior Northwest across the northern Plains into New England. The overall trend toward drought intensification persisted from the Four Corners to the southern Plains and south-central U.S., while modest reductions in drought intensity and coverage were made in northern Montana. Northeast Dry, bitter cold conditions prevailed across

What the new tax law means for agriculture

Farm Credit East tax experts explain 17 ag implications of the new tax reform law. Farm Credit East tax experts have reviewed the 2017 Tax Cuts and Jobs Act — the largest overhaul of the U.S. tax code in 30 years. “Overall, the new tax provisions will provide significant benefits to Northeast farmers,” says Dario Arezzo, Farm Credit East senior tax consultant. “However, certain provisions will unfortunately limit the value for some producers.” Here’s a quick look: • Tax bracket changes. While the total number of brackets remains at seven, the top rate will fall from 39.6% to 37%. And, the amount of income covered by the lower brackets has been adjusted upward. • Standard deductions. The stan

2018 milk price expected to average $1 less than 2017

Dairy Outlook: The 2017 Class III price finished $1.33 higher than 2016. USDA estimates November milk production at 1% higher than the previous year. If December has a similar increase, the year will end up with 215.4 billion pounds of milk, 1.4% more than 2016. But 2016 was a leap year, and the leap-year-adjusted increase would be 1.7%. “This is a lot of milk considering milk production increased 1.6% [leap year adjusted] in 2016,” says Bob Cropp, University of Wisconsin Extension dairy economist. “This strong milk production is putting downward pressure on milk prices.” The Class III price was $16.88 in November, the high for the year, and fell to $15.45 in December. “This will make the av

Cheese ends 2017 on positive note

The final CME prices of 2017 saw the Cheddar blocks at $1.54 per pound, up 4 3/4-cents on the shortened Christmas holiday week but 12 cents below a year ago, with 13 cars sold. The barrels finished the week and the year at $1.4425 per pound, up 3 1/4-cents on the week, 15 3/4-cents below a year ago, and at a larger than normal 9 3/4-discount to the blocks. Twenty-three cars of barrel traded hands last week at the CME. The blocks peaked for the year at $1.76 per pound on Oct. 6 and compares to the 2016 peak at $1.9425 on Nov. 9. They saw a 2017 low of $1.36 per pound on March 15 and that compares to a low of $1.27 on May 12, 2016. The barrels ranged from a high of $1.76 on Aug. 21, 2017, to a

Recent Posts
Archive
Follow Us
  • LinkedIn Social Icon
  • Facebook Basic Square
  • Instagram Social Icon
  • Twitter Basic Square
How can we help?
0

KeyAg Distributors, 4525E, 3425N, Murtaugh, ID 83344          800-388-3659

Disclaimer/Privacy Policy  © 2016-2020 Pacer Technology

  • Facebook Clean
  • LinkedIn Clean
  • Twitter Social Icon
  • Instagram Social Icon