Fluid Milk and Cream - Western U.S.

California weather conditions remain wet and cold, keeping cows' milk output flat. A mechanical breakdown at one processing facility resulted in more milk supplies in the market because the plant had to close and look for alternative ways to channel its milk. Although several loads of milk were successfully redirected to other processing locations, according to some reports, some milk was discarded. Class IV fulfillment was also affected as intakes declined. Aside from this incident, other balancing agreements are getting milk placed as scheduled. Class I sales are unchanged from last week. After a drop last week, farm milk production in Arizona is back up this week. The fluctuation

January Agricultural Prices Received Decreases, Prices Paid Increase

January Prices Received Index Down 4.5 Percent The January Prices Received Index (Agricultural Production), at 84.9, decreased 4.5 percent from December 2018. At 76.3, the Crop Production Index decreased 10.8 percent. The Livestock Production Index, at 97.9, increased 6.4 percent. Producers received higher prices for broilers, cattle, milk, and hogs but lower prices for lettuce, market eggs, cotton, and broccoli. Compared with a year earlier, the Prices Received Index is down 0.7 percent. The Crop Production Index decreased 1.7 percent and the Livestock Production Index increased 3.6 percent. The indexes are calculated using commodity prices and volumes of commodities that producers market.

This Week's Drought Summary (2/28)

A pair of late-winter storms blanketed large areas of the West with snow, easing drought; bolstering high-elevation snowpack; and further improving spring and summer runoff prospects. The first storm system, which swept across the Southwest from February 20-22, produced heavy precipitation in core drought areas of the Four Corners States and deposited measurable snow in locations such as Las Vegas, Nevada, and Tucson, Arizona. The second storm—in actuality a series of disturbances—began to affect parts of the Northwest during the weekend of February 23-24 and later delivered another round of heavy precipitation across northern California. Farther east, drenching rain resulted in aggravated a

Dairy Market: Prices looking for direction

Dairy prices were mixed in the shortened President’s Day holiday week. Cheddar block cheese closed Friday at $1.5950 per pound, up 1 1/2-cents on the week and 10 cents above a year ago. The barrels saw a Friday close at $1.4050, 3 cents lower on the week and 5 1/2-cents below a year ago. 3 cars of block traded hands last week at the CME and 23 of barrel. Monday’s block price inched a quarter-cent higher, then added a penny and a quarter Tuesday, hitting $1.61, highest CME price since Oct. 16. The barrels were up a half-cent Monday and stayed there Tuesday at $1.41, an unsustainable 20 cents below the blocks. Dairy Market News says pizza cheesemakers report sales were a little ahead of expect

Fluid Milk and Cream - Western U.S.

In California, milk output is following seasonally strong tendency. However, with the recent heavy and consistent rains, some industry participants are suggesting that milk output might curve as weeks go by if weather conditions don't change. Meanwhile, balancing schedules remain full. Fluid milk demand has been steady for several weeks. Arizona fluid milk demand is stable along cyclical lines. Class IV sales are stable, compared to the previous week. Some producers are opting to churn their cream in lieu of selling it. Milk production is within expectations and handlers are managing their milk supplies within the state. Processing facilities are running at or close to full capacities. In Ne

This Week's Drought Summary (2/19)

Powerful, late-winter storms crossed the country, delivering periods of heavy precipitation in much of the West; significant snow across the North; and additional rain in the Ohio Valley and mid-South. Lowland flooding affected several river basins in the central and eastern Corn Belt, extending southward into the northern Mississippi Delta. Meanwhile, much of the North remained under a thick blanket of snow. Extremely heavy snow, totaling a foot or more, fell across portions of the upper Great Lakes region on February 12. The following day, snow spread into the Northeast. Later, snow returned across portions of the northern Plains and upper Midwest from February 14-16. Elsewhere, the averag

December Ag Prices Received And Paid Increases

December Prices Received Index Up 1.8 Percent The December Prices Received Index (Agricultural Production), at 89.9, increased 1.8 percent from November 2018. At 87.6, the Crop Production Index increased 4.2 percent. The Livestock Production Index, at 92.0, decreased 0.4 percent. Producers received higher prices for cattle, corn, broilers, and soybeans but lower prices for milk, oranges, hogs, and lemons. Compared with a year earlier, the Prices Received Index is down 2.4 percent. The Crop Production Index increased 3.4 percent and the Livestock Production Index decreased 7.6 percent. The indexes are calculated using commodity prices and volumes of commodities that producers market. Increase

December Milk Production up 0.9 Percent

Milk production in the 23 major States during December totaled 17.1 billion pounds, up 0.9 percent from December 2017. November revised production at 16.4 billion pounds, was up 0.8 percent from November 2017. The November revision represented a decrease of 3 million pounds or less than 0.1 percent from last month's preliminary production estimate. Production per cow in the 23 major States averaged 1,966 pounds for December, 23 pounds above December 2017. This is the highest production per cow for the month of December since the 23 State series began in 2003. The number of milk cows on farms in the 23 major States was 8.72 million head, 21,000 head less than December 2017, and 2,000 head les

Dairy Market: Cheese prices continue to strengthen

Cash cheese prices continued to strengthen in the Valentine’s Day week as traders anticipated Tuesday’s Global Dairy Trade auction and the shortened President’s Day holiday week. This week we will also get Milk Production reports for December and January, the Ag Prices report, Slaughter report, announcement of the March Class I base milk price, and December Cold Storage data. The Cheddar blocks climbed to $1.5925 per pound last Wednesday, highest CME price since mid-October 2018, but they closed Friday at $1.58, up 5 1/4-cents on the week and 4 cents above a year ago. The barrels finished at $1.4350, up 6 1/4-cents on the week, highest since Sept. 13, 2018, but 4 1/2-cents below a year ago.

Fluid Milk and Cream - Western U.S.

Milk production in California has remained strong and steady. Manufacturing facilities are being run seven days per week to make sure that all the milk available is balanced. Compared to the previous week, a few more loads of milk are moving into balancing facilities. Fluid milk demand is flat. Despite strong milk yield in Arizona, milk volumes continue to be lower compared to the previous year. Weather conditions are chilly, especially in the morning and are favorizing cows' milk throughput. Milk pulls from local handlers are at seasonal levels. Bottled milk sales are stable. There have been very limited volumes of milk moving to out- of-state processors. The flush has also started in A

This Week's Drought Summary (12/12)

Northeast The region remains devoid of significant dryness, so none is depicted in the Drought Monitor. Southeast Dryness and drought only exist in southeastern Florida. Several tenths of an inch fell on northern sections of the dry area, and little or none fell on central and southern portions. No substantial changes in conditions and impacts were noted, so the Drought Monitor depiction remained the same as last week. South Little or no precipitation fell again this week on the southern High Plains, prompting broad D0 and more limited D1 expansion across the Texas Panhandle into adjacent Oklahoma, west-central Texas, part of the Big Bend, and the southwestern tier of Texas as far north as S

Dairy Market: Cash dairy prices solidify

Cash dairy prices solidified last week after some hesitancy. CME block Cheddar backed down to $1.4575 per pound last Tuesday but closed Friday at $1.5275, up 2 3/4-cents on the week and 1 3/4-cents above a year ago. The barrels finished at $1.3725, up 7 1/4-cents on the week and 1 1/4-cents above a year ago. Six cars of block were sold last week and 27 of barrel. Traders took the blocks up 3 1/4-cents Monday and stayed there Tuesday at $1.56 per pound, as the morning’s headlines reported that lawmakers had agreed in principle to fund border security, including a “wall” of sorts, thereby avoiding another government shutdown. The barrels were up 3 cents Monday and gained a penny Tuesday, hitti

Stabenow Urges Banks to Consider Farm Bill Dairy Improvements

Senator Debbie Stabenow says the government shutdown, which delayed the dairy safety net improvements from the 2018 farm bill, may be jeopardizing dairy farmers’ ability to access loans and credit. In a letter to three regulators who oversee agricultural credit providers, Stabenow urged lenders to estimate the farm bill benefits as they work with farmers to analyze their financial needs for the upcoming year. Dairy farmers still face a struggling market and the 2018 farm bill, Stabenow says, dramatically expands support for dairy farmers, providing improved coverage options at affordable rates. Stabenow urged regulators to be flexible and work with lenders to ensure farmers are accounting fo

Fluid Milk and Cream - Western U.S.

Milk output throughout California is mostly stable and milk processing levels are unchanged from a week ago. Class I sales are steady. California hay quality is being affected by unsettled weather outcomes. In the Imperial Valley, the first cutting of alfalfa hay is scheduled to take place in the coming two to three weeks, and farmers expect stronger export demand. Demand from Saudi Arabia will likely increase because of restrictions on irrigation water usage for alfalfa farms in this country. Dairy farmers in California are waiting to see how the hay prices will change in the coming months. Milk output in Arizona is flat to increasing as comfortable weather conditions are giving an ext

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