January Ag Prices Received Decreases, Prices Paid Increases

January Prices Received Index Down 2.2 Percent The January Prices Received Index 2011 Base (Agricultural Production), at 88.7, decreased 2.2 percent from December but increased 2.5 percent from January 2019. At 82.3, the Crop Production Index was down 3.5 percent from last month but up 4.6 percent from the previous year. The Livestock Production Index, at 98.2, increased 1.0 percent from December and 0.4 percent from January last year. Producers received lower prices during January for market eggs, milk, lemons, and oranges but higher prices for lettuce, broilers, cattle, and broccoli. In addition to prices, the indexes are influenced by the volume change of commodities producers market. In

Fluid Milk and Cream - Western U.S. Report 9

In California, milk production is higher than expected for this time of the year. Some contacts wonder if this is the sign of early spring flush. Plant issues in part of the state have added to the urgency of finding out-of-state homes for some of the milk. Meanwhile, in order to process more milk, some processors are making nonfat dry milk instead of skim milk powder. The ability to manage milk loads in the second quarter of the year is one of manufacturers' rising concerns. Class I sales are stable. The Arizona dairy market is saturated with milk, cream, and condensed skim, which limits processors' abilities to take out-of-state milk. Nevertheless, they are managing to

This Week's Drought Summary (2/27)

High pressure continued to persist over the eastern Pacific Ocean, forcing a split in the normal west to east upper-air flow for Pacific storm systems. As a result, storms bypassed the central West (e.g. California and the Great Basin), instead tracking northward into the Pacific Northwest and British Columbia, and southward across Baja California and the Southwest. This pattern has produced a very dry January and February in California, normally the two wettest months of the year, resulting in an expansion of short-term D0 and D1 that are impacting non-irrigated land and non-managed rivers. Fortunately, the statewide reservoir storage stood at 104% of average for this time of year. Farther

Ag economist bullish on milk despite USDA forecast

Dairy Outlook: For 2020, University of Wisconsin's Bob Cropp predicts $1 higher Class III price than USDA. University of Wisconsin-Madison dairy economist Bob Cropp believes milk prices will remain strong in 2020 despite USDA forecasting an average Class III price of $16.95 — about the same as 2019. Cropp believes the Class III milk price in 2020 will average about $18. “The January Class III price was $17.05, more than $3 lower than the $20.45 Class III back in November,” Cropp says. “With weaker cheese prices, it looks like the February Class III will drop below $17. But if the spring flush is not strong, I could still see cheese prices recovering by late spring, with continued improvement

Doing a Deep Dive into U.S. Dairy Consumption

It’s no secret that the dairy sector has been struggling with low milk prices for years. Agricultural Economic Insights took a deep dive into the U.S. dairy industry in the face of rising bankruptcies among small farmers and big milk processors like Dean Foods. Fluid milk consumption per capita in the U.S. has been falling for decades. However, consumers are actually buying more dairy goods overall, including more butter and cheese. Cheese consumption per capita has doubled since 1975, with mozzarella and cheddar each representing about 30 percent of consumption in 2018; butter consumption has grown by a third since 2001 and a Politico article says part of that surge comes because fat has lo

January milk production up 1.2%

January milk output hit 18.8 billion pounds, according to preliminary data in the Agriculture Department’s first Milk Production report of 2020. That’s up 0.9% from January 2019. Output in the top 24 states totaled 17.9 billion, up 1.2%. Revisions added 88 million pounds to the original 50-state December total, now put at 18.37 billion pounds, up 1.2% from December 2018. The report pegged 2019 output at 218 billion pounds, up 0.4% from 2018, slowest growth rate since 2009. Cow numbers totaled 9.34 million head, down 0.7% from 2018 and up 2.3% from 2010. The 2019 output per cow averaged 23,391 pounds, up 241 pounds. The average annual production of milk per cow has increased 10.6% from 2010,

Crop Progress - State Stories

Released February 25, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). IDAHO: Idaho had a milder winter in the north but cold conditions continued in the eastern region. Benewah and Kootenai Counties reported warming weather—temperatures in the high 40s in the day, freezing temperatures at night. Weather was favorable for calving across the Panhandle. There was above-average snowpack at higher elevations. Fall seeded crops were in good condition in Lewis County. Grass and winter wheat were greening up in Boundary County. Soil was still frozen, so no fieldwork was possible. Most fields in Latah and Nez

January Milk Production up 1.2 Percent, 2019 Production up .4 Percent from 2018

January Milk Production up 1.2 Percent Milk production in the 24 major States during January totaled 17.9 billion pounds, up 1.2 percent from January 2019. December revised production, at 17.5 billion pounds, was up 1.3 percent from December 2018. The December revision represented an increase of 82 million pounds or 0.5 percent from last month's preliminary production estimate. Production per cow in the 24 major States averaged 2,031 pounds for January, 21 pounds above January 2019. The number of milk cows on farms in the 24 major States was 8.82 million head, 16,000 head more than January 2019, and 5,000 head more than December 2019. 2019 Annual Milk Production up 0.4 Percent from 2018 The

Fluid Milk and Cream - Western U.S. Report 8

Milk production in California is steady and manageable. Class I demands are unchanged from a week ago. The components of milk are increasing. There is a lot of milk available in the Arizona dairy market. Manufacturing machines are being operated at full capacities. Nonetheless, processors cannot take all the milk offered to them due to limitations in processing room. Occasionally, they take a few loads of out of state milk and cream. The expectation is that Arizona fluid milk production will remain high until June or July. Class 1 sales are stable. Minor wintery weather persists in some parts of New Mexico and continues to create delays in milk deliveries. Haulers are doing their best to ke

This Week's Drought Summary (2/20)

With high pressure anchored over the eastern Pacific Ocean, storm systems bypassed California, Nevada, Arizona, and Utah, instead tracking either northward into the Pacific Northwest or southward across Baja California and into the southern Rockies. Once they reached the Nation’s mid-section, ample Gulf moisture was incorporated into the storm systems, generating widespread showers and thunderstorms in the South and Southeast, along with mixed or frozen precipitation in more northern locales. The week’s heaviest precipitation (1-4 inches) fell on western sections of Washington and Oregon, parts of the Rockies, and in the southern Great Plains, lower Mississippi, Tennessee, and Ohio Valleys,

GDT price fall continues

Butterfat and powder values again pulled the Global Dairy Trade (GDT) auction lower Tuesday. The weighted average of products offered fell 2.9%, following the 4.7% plunge on Feb. 4, as traders remain concerned over the growing ramifications of the coronavirus outbreak. Anhydrous milkfat led the decline, down 5.5%, following a 4.5% drop on Feb. 4. Butter was down 3.9%, after inching up 0.2% last time. Skim milk powder and whole milk powder were both down 2.6%, following losses of 4.2% and 6.2%, respectively. Rennet casein was off 0.9%. The only good news was GDT Cheddar cheese, up 5.3%, after it saw a 6.0% boost last time. HighGround Dairy equated the GDT butter price to $1.86 per pound U.S.

Fluid Milk and Cream - Western U.S. Report 7

In California, milk production is seasonally increasing, aided by adequate temperature for cows' well-being. Class I milk is moving steadily to the different channels. Class II requests have somewhat declined. In Arizona, there is plenty of milk available to whoever needs it. Processors are preparing for the spring flush period. Meanwhile, milk output is steady to up. Fluid milk sales are unchanged from a week ago. In New Mexico, milk production has picked up to levels higher than usual for this time of the year. In addition, recent snowstorms have delayed milk deliveries to customers. Consequently, milk holdovers are higher than expected. There were no repair or maintenance projects sc

This Week's Drought Summary (2/13)

Heavy precipitation affected large parts of the Nation last week, with heavy snow in the central Rockies bringing some relief to the dry areas there. The broadest area of heavy precipitation stretched from the Middle Atlantic States southwestward into the Lower Mississippi Valley and the Southeast. At least 2 inches fell from the Ohio River to near the Gulf and southern Atlantic Coasts, with 7 to 10 inches measured across the much of the interior Southeast. On the other side of the 48 states, heavy precipitation covered parts of the Northwest. Near the coast in Washington and northern Oregon, most locations recorded at least 4 inches of precipitation, with isolated amounts to 10 inches in hi

La Nina to bring weather reversal

Corn Belt should receive good moisture and temperatures near normal in 2020 growing season. Weather patterns are going to start being quite different from the last five or six years as El Nino conditions are expected to shift to La Nina conditions this year, according to Dr. Art Douglas, professor emeritus at Creighton University. While the shift may mean hotter, drier conditions for some areas already experiencing drought, the weather in 2020 will play a supporting role for agriculture. Conditions will be slightly warmer and drier than last year, which Douglas said will be favorable for planting and growing conditions during the spring and summer. “If you look off the coast of California an

Dairy Market: Benchmark price drops $2.32

The Agriculture Department announced the first Federal order Class III benchmark milk price of 2020 at $17.05 per hundredweight, down $2.32 from December but $3.09 above January 2019 and the highest January Class III price since 2014. Monday’s Class III futures settlements portended a February price of $17.04; March, $17.29; April, $17.42; and May at $17.39. The peak was $17.93 in September. The January Class IV price is $16.65, down a nickel from December but $1.17 above a year ago and the highest January Class IV price since 2014. Projections unchanged The Agriculture Department left unchanged its 2020 milk production forecast in Tuesday's World Agricultural Supply and Demand Estimates re

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