Weeklyreport PG 8

WEEK OF APRIL 13 - 17, 2009
DAIRY MARKET NEWS
VOLUME 76, REPORT 15
NATIONAL DAIRY MARKET AT A GLANCE CME GROUP CASH MARKETS (4/17): firm as prices continue to rise. Contract buyers are adding loads, reducing BUTTER: Grade AA closed at $1.2025. The weekly average for Grade AA spot offerings. Some producers are looking at buying additional supplies is $1.2025 (+.0069). of condensed whey to help increase supplies. Demand is being tempered CHEESE: Barrels closed at $ 1.1100 and 40# blocks at $1.1700. The weekly at current prices though inquiries are noted from domestic and overseas average for barrels is $1.1190 (-.0873) and blocks, $1.1800 (-.0756). buyers. Producer supplies are tight to adequate. According to FAS, whey BUTTER HIGHLIGHTS: The cash butter price at the CME Group exports for the first two months of 2009 total 66.5 million pounds, up 16% declined fractionally to settle at $1.2025. Churning remains active. Ice cream/ from the same period last year. Exports account for 39% of total whey mix production is using steady to heavier volumes of cream as temperatures produced during the period. The WPC market is about steady. Manufacturer warm. Printing has not declined as much as anticipated since holiday orders supplies range from tight to adequate. Some buyers are active while others were shipped. Producers are trying to build bulk inventory for use later in are lighter. Lactose is steady to weak. Production is steady to occasionally the year. A major Midwestern producer announced on April 15 that they lower. Some producers note increased interest from Asian and South are closing a Wisconsin butter plant. According to FAS, U.S. butter and American customers. milkfat exports for the first two months of 2009 total 8.7 million pounds, CCC PURCHASES (FSA): During the week of April 13 - 17, CCC down 72% from the same period in 2008. This volume is equal to about 2.7% purchased no butter and 6,624,294 net pounds of Western NDM under the of total butter production for the period. dairy product price support program. Cumulative CCC purchases since CHEESE HIGHLIGHTS: The CME Group cash cheese market remained October 1 total 4,639,010 pounds of butter and 218,219,205 pounds of weak as prices approach CCC purchase prices of $1.13 per pound for blocks NDM. and $1.10 for barrels. Orders are lighter after the holidays and as some spot INTERNATIONAL OVERVIEW: Milk production is moving along buyers wait for possible lower prices to place orders. Current cheese at expected levels across Western Europe with most countries at or near year offerings have increased. Lead times on bulk orders range from regular to ago levels. Declining pay prices have had a great influence on the milk flow shorter than normal periods. Current cheese production remains seasonally which has most countries at or below expected and quota levels. On active though yields are trending lower. According to FAS, U.S. exports of Wednesday April 8, it was announced that the common or list refund for cheese and curd for the first two months of 2009 total 36.9 million pounds, EU export subsidies will remain unchanged: Skim milk powder 190 Euros down 22% from the same period in 2008. Exports account for 2.3% of total per MT, whole milk powder 290 Euros, butter 550 Euros, butteroil 666 U.S. cheese production for the period. Euros, and cheese 198.4 Euros. Under the tendering system, 16,748 MT FLUID MILK: Milk intakes are increasing seasonally throughout the of skim milk powder were bid with awards of 13,398 MT of this volume country with the exception of California and the Pacific Northwest where at a maximum of 220 Euros per MT; butter, 10,516 MT bid, 4,816 MT volumes are mostly steady. The weather conditions for milk production receiving awards at a maximum of 600 Euros per MT; and butteroil, bids improved in Florida and Arizona, resulting in steady to heavier volumes at totaled 1,174 MT, awards of 632 MT at a maximum of 730 per MT. a time when volumes usually decline seasonally. A number of plants took Maximum levels of intervention for butter (30,000 MT) were quickly filled a longer weekend causing some extra milk and components to back into other during the early days of the open season thus subsequent offerings are being manufacturing channels. While these manufacturing plants operated on accepted under a tendering system. Butter intervention totals, as of April heavier schedules, the extra cream and milk was easily handled. Improving 3 are around 51,300 MT. Skim milk powder offerings now total around weather conditions are stimulating ice cream and soft serve consumption so 97,350 MT with maximum levels that would receive fully restitution many manufacturers are increasing production seasonally. The rotation of totaling 109,000 MT. PSA totals for butter are near 68,500 MT. Overall, various schools out on spring break continues to impact fluid milk demand export sales are slow. The general weak world economy is a major factor again this week. with the buying power of importing countries greatly impacted and lower DRY PRODUCTS: The NDM market is unsettled with prices moving than a year ago. Often, and especially without subsidies, pricing out of higher and lower. Current drying remains seasonally active with little high Europe is higher than Oceania. Seasonal declines in Oceania milk output heat being produced as producers maximize the volume of condensed skim continue as the milk producing season winds down. The autumn season dried. Export interest remains light. According to FAS, January and has been favorable weather. Economic conditions in local economies are February 2009 exports of NDM/SMP totaled 76.2 million pounds compared affecting milk production. Unsettled world conditions, currency valuations, to 153.7 million pounds last year, down 50%. Buttermilk prices are higher and credit availabilities, all play out as demand factors for exporting and as powder supplies remain light as most product moves as condensed and contracting for future exports. Farm milk prices will likely hold through dryers are busy making NDM. Some users are replacing buttermilk with the season. Milk pricing values for next season remain a big concern. NDM in some applications. Producers in the West are trying to raise prices Continued on Page 1A closer to be in balance with prices further East. The whey market remains
INTERNATIONAL DAIRY MARKET NEWS (PAGE 8) DAIRY FUTURES (PAGE 9) DAIRY OUTLOOK (PAGES 10 11) ****SPECIALS THIS ISSUE***** DAIRY OUTLOOK ALFALFA SPECIAL (PAGES 12 13) MAY FEDERAL ORDER ADVANCE PRICES (PAGE 14) DAIRY GRAPHS (PAGES 15 - 16)
CME GROUP CASH TRADING PRODUCT CHEESE BARRELS 40# BLOCKS BUTTER GRADE AA MONDAY APRIL 13 $1.1550 (-.0150) $1.2200 (-.0150) $1.2025 (-.0025) TUESDAY APRIL 14 $1.1100 (-.0450) $1.1700 (-.0500) $1.2025 (N.C.) WEDNESDAY APRIL 15 $1.1100 (N.C.) $1.1700 (N.C.) $1.2025 (N.C.) THURSDAY APRIL 16 $1.1100 (N.C.) $1.1700 (N.C.) $1.2025 (N.C.) FRIDAY APRIL 17 $1.1100 (N.C.) $1.1700 (N.C.) $1.2025 (N.C.) WEEKLY CHANGE* WEEKLY AVERAGE# $1.1190 (-.0873) $1.1800 (-.0756) $1.2025 (+.0069)
(-.0600) (-.0650)
(-.0025)
CHEESE: carload = 40,000-44,000 lbs., BUTTER: carlot = 40,000-43,000 lbs. *Sum of daily changes. # Weekly averages are simple averages of the daily closing prices for the calendar week. Computed by Dairy Market News for informational purposes. This data is available on the Internet at WWW.AMS.USDA.GOV/DAIRYMARKETNEWS.
1A
WEEK OF APRIL 13 - 17, 2009
DAIRY MARKET NEWS NATIONAL DAIRY MARKET AT A GLANCE
Continued from Page 1 Australian milk figures for February are adjusting lower and the seasonal totals are projected to come in at around the same level as the prior season.Early season gains are being erased by later season declines. New Zealand milk flow is trending lower. The milk year totals YTD indicate around a 5% increase over the prior year with the heaviest gains noted early in the year with current numbers declining as the year progresses. Prices for manufactured dairy products are steady to slightly higher. Most products have been contracted or are being held for expected business in coming months. DAIRY OUTLOOK (ERS): Dairy cow slaughter surged ahead of yearearlier levels for the third month in a row in February, aided in part by the sixth Cooperatives Working Together (CWT) buyout since 2003, which removed over 50,000 cows from the dairy herd, mostly in the first quarter of 2009. USDA forecasts that the dairy herd will contract to an average 9.2 million cows in 2009, compared with 9.3 million in 2008. The contraction is expected to continue throughout the year; by the fourth quarter of 2009, the number of dairy cows will likely average about 300 thousand fewer than those on hand in the fourth quarter of 2008. Higher feed costs will likely continue to pressure producer profits. Milk per cow will climb only incrementally in response to poor producer returns. The yield increase is expected to be less than one-half of 1% this year, adjusting for leap-year, continuing the trend toward smaller year-over-year increases that began in 2006. The outcome from these adjustments is a decline in milk production in 2009 to 187.1 billion pounds from 190.0 billion pounds in 2008. Declining retail cheese prices that have lagged falling wholesale prices are finally beginning to boost consumption. For the year, prices are expected to average $1.270 to $1.320 per pound. According to Dairy Market News, international demand for butter is weak. Since the first of the year, the Commodity Credit Cooperation (CCC) has contracted to buy 4.6 million pounds of butter, but higher prices are expected to preclude additional butter purchases this year. The butter price is expected to average $1.155 to 1.235 per pound for the year. With nonfat dry milk (NDM) prices near support levels, domestic use appears to be strengthening. Prices for NDM are forecast to remain above support, averaging 83.0 cents to 87.0 cents per pound in 2009. As a result of slightly higher than expected product prices, the prices for Class III and Class IV milk have been raised slightly to $10.65 to $11.15 per cwt and $9.95 to $10.55 per cwt, respectively, for 2009. The all milk price is expected to average $11.85 to $12.35 per cwt in 2009. FEDERAL MILK ORDER ADVANCE PRICES HIGHLIGHTS (DAIRY PROGRAMS): Under the Federal milk order pricing system, the base price for Class I milk for May 2009 is $10.97, up 61 cents from May. This price is derived from the advanced Class III skim milk pricing factor of $7.01 and the advanced butterfat pricing factor of $1.2019 per pound. Class I differentials specific to each county are added to the base price to determine the Class I price. The Class II skim milk price for May is $6.49 and the Class II nonfat solids price is $0.7211 per pound. The following are the two-week product price averages: butter $1.1640, nonfat dry milk $0.8181, cheese $1.3030, and dry whey $0.1852.
DAIRY MARKET NEWS, APRIL 13 - 17, 2009

MONDAY, APRIL 13, 2009
-2CME GROUP
CHEESE SALES: 1 CAR 40# BLOCKS @ $1.2200; LAST BID UNFILLED: 1 CAR 40# BLOCKS @ $1.2200; LAST OFFER UNCOVERED: 1 CAR BARRELS @ $1.1550 NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER SALES: 2 CARS GRADE AA: 1 @ $1.2050, 1 @ $1.2000; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.2025; LAST OFFER UNCOVERED: NONE TUESDAY, APRIL 14, 2009 CHEESE SALES: 9 CARS BARRELS: 1 @ $1.1400, 2 @ $1.1300, 3 @ $1.1200, 2 @ $1.1125, 1 @ $1.1100; 3 CARS 40# BLOCKS: 1 @ $1.1750, 2 @ $1.1700; LAST BID UNFILLED: 1 CAR BARRELS @ $1.1025; LAST OFFER UNCOVERED: 1 CAR BARRELS @ $1.1200; 1 CAR 40# BLOCKS @ $1.1700 NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER SALES: 4 CARS GRADE AA: 1 @ $1.2000, 1 @ $1.2025, 1 @ $1.2000, 1 @ $1.2025; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.2000; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.2050 WEDNESDAY, APRIL 15, 2009 CHEESE SALES: NONE; LAST BID UNFILLED: 1 CAR BARRELS @ $1.1025; 1 CAR 40# BLOCKS @ $1.1600; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER SALES: NONE; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.2025; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.2050 THURSDAY, APRIL 16, 2009 CHEESE SALES: 6 CARS BARRELS @ $1.1100; 1 CAR 40# BLOCKS @ $1.1700; LAST BID UNFILLED: 1 CAR BARRELS @ $1.1000; 1 CAR 40# BLOCKS @ $1.1600; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: 1 CAR GRADE A @ $0.8500; LAST OFFER UNCOVERED: 1 CAR GRADE A @ $0.8600 BUTTER SALES: 2 CARS GRADE AA @ $1.2000; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.2025; LAST OFFER UNCOVERED: NONE FRIDAY, APRIL 17, 2009 CHEESE SALES: 5 CARS BARRELS @ $1.1100; LAST BID UNFILLED: 1 CAR BARRELS @ $1.1000; 1 CAR 40# BLOCKS @ $1.1500; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: 1 CAR EXTRA GRADE @ $0.8200; 1 CAR GRADE A @ $0.8200; LAST OFFER UNCOVERED: NONE BUTTER SALES: NONE; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.1950; LAST OFFER UNCOVERED: NONE CME GROUP CASH NONFAT DRY MILK: Extra Grade closed the week at $0.8500 and Grade A at $0.8500. The last price change for Extra Grade was on 12/31/08 and Grade A was on 04/16/09. The weekly average for Extra Grade is $0.8500 (N.C.) and Grade A is $0.8470 (+.0020).
BUTTER MARKETS NORTHEAST
Butter trading became atypically vibrant last week compared with during recent months. CME Group butter activity stood out from recent months as to: (1) the weekly average; (2) the price increase for a single day; and (3) trading volume for the week, as well as for a single day. The weekly average for Grade AA Butter increased to $1.1956 last week, the highest level since the week before Christmas. The $0.0150 daily increase last Wednesday was the largest single daily increase since December 17th. Finally, not for 8 months since the week of August 11th, have sales of butter exceeded the daily total of 14 last Wednesday nor the weekly total of 19 especially noteworthy because last week had only 4 trading days. This activity spike is believed to reflect that some buyers found value in buying and trading at current cash butter prices. Churning continues in most plants this week, with butter being committed to inventory. A number of plant managers believe that current cream multiples warrant being locked in now even considering storage costs, by making butter for sale later in the year. Few plants received significant post-holiday order increases from retail outlets. Cream multiples are steady to slightly higher ranging from occasionally the low 120s to occasionally the low 130s, depending on location within the East, localized supply factored against transportation costs, timing of orders and expected delivery date. Buyers with some time flexibility, particularly those manufacturing butter for inventory, are able to find cream toward the lower to mid point of the range and some are particularly committed to that goal in making purchases. Ice cream manufacturing has not yet greatly begun to challenge butter manufacturers for available cream. Through February 2009, U.S. exports of butter totaled slightly over 5.3 million pounds, a nearly 82% decrease from the same period in 2008. This results from the complete absence of 2009 exports to the 2 largest 2008 export markets, as well as reductions in exports to others. One country, Saudi Arabia, accounts for 61% of total butter exports for the first 2 months of this year. The totalvolume exported to Saudi Arabia has remained approximately constant,
being only slightly higher for the same months of 2008. However, the complete absence of 2009 butter exports through February to the largest 2008 sources, Russia and Egypt, as well as to a number of other countries with relatively smaller 2008 volume, explains the overall reduced export volume. The magnitude of lost markets is illustrated by noting that 2008 exports through February to Russia and Egypt were over 380% higher than 2009 exports to Saudi Arabia to date.
CENTRAL
Butter pricing at the CME Group is holding steady at the $1.2025 mark at midweek, just a 1/4 cent lower than the price a week ago. Many in the trade are perplexed at the butter price holding at the current time, following the spring holidays. Typically, pricing patterns weaken, allowing butter to be made and stored for later in the year usage. Butter churning remains active in the region. Cream usage has switched from seasonal, holiday items towards ice cream production. Cream was handled well over the weekend with little to no distressed loads. With cheese prices declining, cream movements to cheese plants have slowed. Butter demand at the retail sector has slowed. Reports indicate that fewer butter features are taking place, although store brands are often priced well in comparison to branded products. Additionally, retailers are assessing holiday sales before ordering additional stocks. Buying activity remains slow for food service accounts. Overall restaurant business has slowed with consumers eating out less and scaling back on check totals. Additionally, they are moving down to restaurants whose menus utilize less butter. A major Midwestern butter producer announced on April 15 that they are closing a Wisconsin plant within 60 days. Spot bulk butter prices range from 1/2 cent under to 2 cents over various pricing basis and averages per pound.
WESTERN BUTTER MARKET FOUND ON PAGE 2A
NASS DAIRY PRODUCT PRICES U.S. AVERAGES AND TOTAL POUNDS CHEESE BARRELS NDM BUTTER DRY WHEY WEEK ENDING 38% MOISTURE APRIL 11 1.2761 1.2988 0.8203 1.1575 0.1931 13,449,639 10,342,660 28,126,633 3,561,504 10,750,359 Further data and revisions may be found on the internet at: http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1450 CHEESE 40# BLOCKS
-2A-
WEST
Butter prices at the cash CME market reached the peak for the year last week on Wednesday of $1.2050. Since that time, prices have backed off 1/4 cent. Some contacts were surprised at the 2 1/2 cent increase noted during the week before Easter. Many had assumed that once the holiday period demand was covered the market would weaken or only hold steady. The strength surprised them as well as the fact that 19 cars sold. Holiday demand overall was rated as good to very good, but production of butter remains relatively heavy. Demand is expected to weaken after the holiday period. Enough cream is available for manufacturers to make as much butter for future needs as they want. Some initial feature activity for retail butter cuts was noted as late as Wednesday last week which surprised some contacts. According to FAS, exports of butter and milkfat for the first two months of the year total 8.7 million pounds, down 72% from the same period in 2008. This volume is equal to about 2.7% of the total production of butter for the two month period. The top three export destinations, the volume shipped and the change from last year are as follows: Saudi Arabia 3.3 million pounds, -20%; Mexico 2.7 million pounds, +91%; and Korea .7 million pounds, +229%. These three countries account for 77% of the exports for the period. Last week, butter stocks in CME approved warehouses totaled 76.6 million pounds, down 3.8 million pounds from the previous week. The weekly total compares to 124.1 million pounds in 2008 and 124.6 million pounds in 2007. Prices for bulk butter range from 2 cents to 5 cents under the market, based on the CME with various time frames and averages used.
DAIRY MARKET NEWS, APRIL 13 - 17, 2009 NORTHEAST Cheese prices moved down in recent days. Last weeks average for blocks and barrels declined, reducing most wholesale cheese prices. The first 2 days of CME Group trading this week resulted in further price declines, with blocks down for the week so far 6 1/2 cents to $1.1700 and barrels down 6 cents to $1.1100. Fewer retail specials are being offered and that is affecting retail demand for many varieties. In the Northeast, manufacturers mozzarella sales are comparable to year over year sales, but seasonally weaker. However, inventories are tight, which is maintaining strong current production levels. January February 2009 U.S. exports of cheese & curd under code 0406 totaled 36.9 million pounds, a 22% decrease from the same period in 2008, according to the latest FAS report. The cheeses with greatest volume all registered year to date export volumes below last year. Cheddar exports through February 2009 were 5.2 million pounds, nearly 40% lower than exports for the same period last year. Processed cheese exports of 4.2 million pounds through February 2009 were 27.8% lower than the same period during 2007. Colby exports through February were 7.6% below 2008, totaling 270,000 pounds.
WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)
-3CHEESE MARKETS
WEST
In the recent price cycle for cheese, prices peaked on March 27 at $1.29 for blocks at the cash CME Group. Prices held above $1.28 until April 6 when a real downturn to the recent cycle started. Prices have lost 11 cents since that time and closed at $1.17 at midweek. The price inversion, barrels above blocks that had maintained for most of March, has righted itself to blocks being above barrels again. Barrels are currently 6 cents below blocks and only 1 cent above the CCC support price. This is the lowest price for barrels since January 28. Contacts are not sure why both types of cheese are declining this rapidly at this time. Cheese is available, but the volume offered is not that much different than in recent weeks. Demand is still being called good for the most part. Buyers had stocked up to some extent when prices were at the low point of the last cycle, but the volumes were not thought to be that heavy. Offerings of under grade cheese are being offered at aggressively high prices and they are meeting some push back. According to FAS, exports of cheese and curd for the first two months of the year total 36.9 million pounds, down 22% from the same period in 2008. These exports account for 2.3% of the total cheese production for the two month period. The top four export destinations, the volumes shipped and the change from last year are as follows: Mexico 15.4 million pounds, +25%; Korea 4.1 million pounds, -25%; Canada 2.8 million pounds, -27%; and Japan 2.2 million pounds, -36%. These four countries accounted for 66% of the exports for the period.
WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)
Cheddar 10# Prints Cheddar Single Daisies Cheddar 40# Block Process 5# Loaf Process 5# Sliced Muenster Grade A Swiss Cuts 10 - 14#
: : : : : : :
1.4700-1.9900 1.4275-1.9125 1.5250-1.8000 1.2850-1.5250 1.3000-1.6100 1.5450-1.7425 2.9875-3.3100
MIDWEST
The cheese market remains weak and price declines continue on the CME Group cash cheese market. Prices are rapidly approaching the CCC support purchase prices, particularly on barrels. Around these levels, some plant operators may again implement their announced absolute minimum price programs. Spot interest is often lighter, typical when prices are declining. Some retailers are putting together grilling promotions for Memorial Day. Current cheese offerings are available with order lead times steady to occasionally shorter. Natural American volumes have been accumulating at some plants. Mozzarella interest is still uneven as usual around the spring vacation season, but generally clearing solid volumes. Some tightness is noted on Swiss supplies. Some schools are out on break this week, reducing fluid volumes needed by bottlers. Cheese yields continue to edge seasonally lower. Most plants continue to operate on heavy seasonal schedules.
WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)
Process 5# Loaf Cheddar 40# Block Cheddar 10# Cuts Monterey Jack 10# Grade A Swiss Cuts 6 - 9#
: : : : :
1.3325-1.5900 1.3650-1.7175 1.5450-1.7650 1.5550-1.7150 2.6900-3.1100
FOREIGN
Prices of domestic foreign type cheese declined this week while imported cheese prices are steady. Post-holiday inventories are adequate for demand, which is typically lighter after the spring holidays. Some tightness exists in Swiss markets. January February 2009 U.S. exports of blue veined cheese were up nearly 540% through February compared with last year, but on very small total volume of 120,000 pounds. Almost all exports were to Mexico, with a smaller volume going to Canada. Total exports of cheese & curd under code 0406 totaled 36.9 million pounds, a 22% decrease from the same period in 2008, according to the latest FAS report.
WHOLESALE SELLING PRICES: FOB DISTRIBUTORS DOCK DOLLARS PER POUND (1000 - 5000 POUNDS, MIXED LOTS)
VARIETY Blue Gorgonzola Parmesan (Italy) Romano (Italy) Provolone (Italy) Romano (Cows Milk) Sardo Romano (Argentine) Reggianito (Argentine) Jarlsberg-(Brand) Swiss Cuts Switzerland Swiss Cuts Finnish * = Price change.
Process American 5# Loaf Brick And/Or Muenster 5# Cheddar 40# Block Monterey Jack 10# Blue 5# Mozzarella 5 - 6# (Low Moisture, Part Skim) Grade A Swiss Cuts 6 - 9#
: : : : : : :
1.5675-1.7200 1.8100-1.8275 1.6400-2.5650 1.6900-2.5650 2.1200-2.5200 1.6600-2.6650 2.1100-3.3300
WEEKLY COLD STORAGE HOLDINGS-SELECTED STORAGE CENTERS IN THOUSAND POUNDS - INCLUDING GOVERNMENT STOCKS BUTTER : CHEESE : 20,523 : 103,207 21,317 : 103,521 -794 : -314 -4 : N.C.
: : : : : : : : : : : : : :
NEW YORK IMPORTED : DOMESTIC : 2.6400-4.7700 : 1.6650-3.1525* 3.6900-6.3900 : 2.1675-2.4275* -0: 3.0725-3.4925* 2.1000-3.6900 : -03.4400-6.8900 : 1.7075-1.8650* -0: 2.8550-4.9975* 2.8500-3.6900 : -02.6900-6.3900 : -02.9500-4.7900 : -0-0: 2.9775-3.3000 2.5900-3.5900 : -0-
04/13/09 04/01/09 CHANGE % CHANGE
-4FLUID MILK AND CREAM
EAST
Spot shipments of Grade A milk into or out of Florida and other Southeastern states THIS WEEK
FLORIDA SOUTHEAST STATES IN 0 0 OUT 189 0
LAST WEEK
IN 0 0 OUT 215 0
LAST YEAR
IN 0 0 OUT 100 0
Milk production is increasing seasonally throughout the East. Butter production and drying schedules are active to help clear intakes. NORTHEAST production is moving toward the expected peak in late May. Weather is pleasant, reaching highs in the 50s in recent days. Increasing milk production is keeping plants active, but able to handle the volume. Drying capacity is mostly committed to nonfat dry milk, leaving little capacity to dry buttermilk resulting from active churning. MIDDLE ATLANTIC milk production is strong and climbing. Spot market cream is available at multiples generally unchanged from last week. More available regional cream following the peak of last-minute holiday production resulted in less spot cream movement from the West. Retail fluid milk sales have been steady. Warmer weather in the SOUTHEAST is resulting in more time in pastures for cows. Balancing plants experienced smoother than anticipated flows of milk late last week heading into the holiday weekend. Milk production continues to increase and there is little culling impact evident to managers of a number of plants. Normally idle plant capacity available to handle production peaks is now operating. This results in drying to make cheese powders and cultured dry products. FLORIDA cows are producing "lots of milk". Weather has been pleasant with humidity levels tolerable for cow comfort. Milk intakes, which were building with insufficient committed destinations as of early last week, unexpectedly cleared as the week progressed. This reduced end of week inventory levels which resulted in reduced numbers of shipments out of the state from 215 last week, to 189 this week. CONDENSED SKIM demand remains weak with many buyers preferring nonfat dry milk. Some spot sales have occurred at discounted prices as plants work to handle intakes. CREAM spot market multiples are generally unchanged to slightly higher in certain locations and timing situations. The weakening of multiples that some people had hoped for late last week heading into a holiday weekend, with some plants closed for 1 day, generally did not materialize. Many butter manufacturers are churning to convert cream at current multiples into butter for storage and future sale at what they believe will be higher prices. Ice cream production is varied throughout the region, somewhat up in some areas, but not generally to levels challenging butter manufacturers for cream or driving regional cream multiples up.
FLUID CREAM AND CONDENSED SKIM PRICES IN TANKLOT QUANTITIES SPOT PRICES OF CLASS II CREAM, $ PER LB BUTTERFAT F.O.B. PRODUCING PLANTS: NORTHEAST 1.4347-1.5901 1.4706-1.5304 F.O.B. PRODUCING PLANTS: UPPER MIDWEST PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: NORTHEAST - CLASS II - INCLUDES MONTHLY FORMULA PRICES .72 - .91 .83 - .92 NORTHEAST - CLASS III - SPOT PRICES
active as some other users were closed an extra day for the holiday weekend. Ice cream production is mixed with additional warm weather ice cream/soft serve outlets opening while a few other producers are lighter after holiday orders were filled. Manufacturing milk was often lighter, especially after recent cheese price declines cause buyers to delay purchases. There were not enough prices to report a range. Current milk intakes are steady to slightly higher. Many plant operators are surprised that low milk prices have not generated a larger cow culling. At least one commented that job prospects off the farm are not promising. Some small grains are being seeded though the soil warm up is slow in northern tier states with night time temperatures generally still in the 30s. Some late planted winter wheat last fall is finally emerging in northern states and the rest is greening slowly. Some soil preparation is occurring but wet weather has slowed the start of corn planting.
WISCONSIN LIVESTOCK AUCTIONS (PER CWT.) APR 9 - 15 SLAUGHTER COWS REPLACEMENT HEIFER CALVES $ 43.00- 50.00 $ 75.00-290.00 PREVIOUS YEAR $ 47.00- 52.50 $350.00-650.00
WEST
MIDWEST
Class I interest continues to be affected by some schools out on spring break while others rotate back into session. Retail fluid interest was also lighter after the holidays. Non-ice cream Class II product orders were uneven, from lighter to occasionally good. Recent announcements including closing a large upper Midwest butter plant as well as the recent sale of a pair of bottling plants are expected to cause changes in milk and cream buyers, particularly around major holidays and the peak production period. Some speculate cream multiples may be lower due to reduced competition. Extra cream was available over the holiday weekend but current plant capacity was adequate to easily handle the extra offerings though multiples were lower over the weekend. Churning was
The May 2009 Class 1 prices in California range from $12.68 in the north to $12.96 in the south. The statewide average Class 1 price based on production is $12.71. The average is $1.11 higher than April 2009 but $6.10 less than May 2008. CALIFORNIA milk production is mostly steady with recent weeks at levels near or below a year ago. The effects of cow culling, reformulated rations and producer base plans are still impacting the milk flow. New crop hay and green chop are being fed, which is stimulating additional milk. Processors continue to see fat and protein levels below expectations. Plants are at or near capacity in the state and some milk and/or components are moving out to find a processing home. ARIZONA milk output is surprising processors. The thought was that milk peaked for the season a few weeks ago as the flow declined off that level. In recent days, milk receipts have picked up and surpassed the levels of a few weeks ago. Weather and feed are major reasons. Plants are full and able to take in very little outside milk. CREAM markets are unsettled. Demand for cream has shifted from holiday cream based items towards ice cream production with butter production remaining active. Multiples and overages have eased slightly. Many contacts are commenting on the strength of the butter prices, despite the passing of the spring holidays. Tradition would have the butter price ease lower around or after the holiday to compensate for butter to be stored. The CME Group butter price for Grade AA closed at $1.2025 on Wednesday, April 15, down just 1/4 of a cent from a week earlier. Multiples range from of 108-120 FOB and vary depending on class usage and basing points. Milk production is holding flat in the PACIFIC NORTHWEST. Some comments were heard that some producers are waiting to see how the current herd buyout program works out before making a decision about what to do. Some are also concerned that banks may lower the value of animals on farms which will make loan renewals much more problematic. Weather conditions are finally becoming more spring-like. Limited pasturing and some green chopping are beginning in coastal areas. Mud is less of a problem on the east side and the green up has started. Prices at the monthly heifer sale were about $50 higher and in a range of $1250-1450. Numbers sold remain on the light side. Winter weather is still an issue in UTAH and IDAHO with comments noted this week that "I am looking out the window and cant see across the road". Conditions are muddy again adding to cow stress. The wet and cool cycle may continue into next week. Most believe that a late spring is now guaranteed. This will not help with cost of production issues. Prices continue to firm a bit at the two heifer sales in the region. The top of the markets vary from $1580-1750 and the averages are $1420-1600.
-5NDM, BUTTERMILK & WHOLE MILK
Prices represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound.
NONFAT DRY MILK - CENTRAL AND EAST
CENTRAL: The Central nonfat dry milk market is mixed and prices moved both higher and lower. Manufacturer inventories are tighter and fewer spot market offerings from producers are being reported. Sales of fluid milk into Class I are steady. Class I needs at various school districts have been lower during the last few weeks as spring break schedules rotate through the states. Retail sales are holding steady as price discounts are still drawing consumers to bottled milk purchases. Nonfat dry milk production is steady to somewhat higher as some Class II condensed skim end users have been on plant shutdown for one or more days. Most plants are focusing on low heat nonfat dry milk production. Some resales of NDM are occurring at the high end of the range. Foreign Agricultural Service reports that February 2009 exports of nonfat dry milk under Schedule B code 0402100000 total 12.6 kilotons (kt). This is about a 42% decrease from January 2009 exports and a 66% decrease from February 2008 exports. Cumulative 2009 exports through February total 34.6 kt, a 50% decrease from the same time span in 2008. The top three destinations for nonfat dry milk thus far in 2009, export amounts and percentage changes from the same time span in 2008 are: Mexico (9.5 kt, -57%), Philippines (6.7 kt, -21%) and Indonesia (5.2 kt, -3%). These 3 export destinations account for 61% of the total January February 2009 nonfat dry milk exports. EAST: Eastern nonfat dry milk prices moved higher and lower for the week. Production of nonfat dry milk is heavy. A number of plants are operating dryers at or near full capacity to clear heavy intakes. Manufacturers continue to offer contracts to prospective buyers in need of regular supply. However, buyers continue to be somewhat reluctant to commit without price terms sellers are adverse to. Product is available on spot markets.
F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8325 - .9000 MOSTLY: .8500 - .8700 HIGH HEAT: .8550 - .9700
CALIFORNIA MANUFACTURING PLANTS - NDM

WEEK ENDING April 10 April 3 PRICE $.8090 $.8072 TOTAL SALES 18,540,753 22,033,511 SALES TO CCC 4,969,083 4,520,520
Prices are weighted averages for Extra Grade and Grade A Nonfat Dry Milk, f.o.b. California manufacturing plants. Prices for both periods were influenced by effects of long-term contract sales. Total sales (pounds) include sales to CCC. Compiled by Dairy Marketing Branch, California Department of Food and Agriculture.
DRY BUTTERMILK - CENTRAL AND EAST

CENTRAL: Central dry buttermilk prices are higher on a firm market. Production is unchanged at most plants. Sales of condensed buttermilk loads into Class II facilities are active from some locations. Dry buttermilk inventories are steady to lower as contracted sales move seasonally higher, leaving less product to move into the spot market from manufacturers. A few end users are supplanting dry buttermilk use with NDM or condensed skim combined with cream. Some Western dry buttermilk is clearing into the Central region. EAST: Eastern dry buttermilk prices decisively increased in reflection of the very tight supply situation. Prospective buyers have a difficult time finding dry buttermilk for spot market purchases. Butter manufacturing is steady and condensed buttermilk is being generated, but drying tends to be limited due to priority commitment of dryer capacity to nonfat dry milk. Condensed buttermilk is available for drying, with some manufacturers wishing it could be dried, but market factors allocating dryer capacity is the limiting factor. Contracted sales are moving on schedule.
F.O.B. CENTRAL/EAST: .8400 - .9025
NONFAT DRY MILK - WEST DRY BUTTERMILK - WEST

Western low/medium heat nonfat dry milk prices continue to trend slightly higher with the market undertone unsettled. The market is weak considering that surplus NDM continues to clear to the CCC support program. The market is steady to firm in the domestic market where offerings are generally being made on the light side. Additionally, demand has been fair to good as buyers looked to secure product because they felt the market price was moving up and they wanted coverage. Export interest has been slow, especially compared to a year ago. World conditions have slowed and the U.S. is not the first choice in securing needs. Established export business continues with some new smaller quantity deals being worked out. As cheese prices falter, so does the demand for condensed skim and NDM in cheese production. Drying has been active to process the seasonally higher milk production. Stocks are available. For the week April 6-10, 2.2 million net pounds of Western NDM were purchased by CCC, as the total reaches 211.6 million pounds. For January - February 2009, FAS reports exports of NDM/SMP at 34,565 MT (76.2 million pounds), compared to 69,719 MT (153.7 million pounds) a year earlier, a decrease of 50%. The top 5 countries for exports are: Mexico, 9479 MT; Philippines, 6717 MT; Indonesia, 5183 MT; Malaysia, 3596 MT; and Algeria 2429 MT;. The top five countries account for 79% of the total exports during the two months. Exports in February were 66% less than a year ago.
F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: .8000 - .8475 MOSTLY: .8000 - .8300 HIGH HEAT: .8600 - .9950
Dry buttermilk prices in the West are higher and the market tone remains firm. Some producers are trying to push market prices higher to close the gap between Central and Western pricing. The gap is wide enough to offset freight but there are few offerings to fill demand. Production remains limited with NDM taking as much dryer time as available with most Western plants full. Buttermilk stocks remain light.
F.O.B. WEST: .6600 - .7200 MOSTLY: .7000 - .7100
DRY WHOLE MILK - NATIONAL

Prices for dry whole milk moved higher based on mostly steady nonfat milk prices and higher butterfat prices. Production is infrequent as most plants are clearing intakes with NDM production versus dry whole milk. Inventories are sufficient for near term contact fulfillment. According to the Foreign Agricultural Service, February 2009 dry whole milk and cream exports under Schedule B code 0402210000 fell by about 82% compared to February 2008 from 2.4 kilotons (kt) to .4 kt, decreased by about 71% from January 2009 (1.4 kt). Cumulative 2009 exports through February total 1.9 kt, a 62% decrease from the same time span in 2008. Mexico (.8 kt), Dominican Republic (.4 kt) and Japan (.3 kt) are the top three destinations for dry whole milk and cream exports thus far in 2009, accounting for 84% of the total 2009 dry whole milk and cream exports.
F.O.B. PRODUCING PLANT: 1.1000 - 1.1500
-6WHEY, CASEIN & EVAPORATED MILK
Prices represent carlot/trucklot quantities for domestic and export sales packaged in 25 kg. or 50 lb. bags, or totes, spray process, dollars per pound. DRY WHEY - CENTRAL WHEY PROTEIN CONCENTRATE - CENTRAL AND WEST
Prices for Central dry whey are higher on a firm market. Spot market offerings direct from manufacturers are variable, with some plants having little or no product available. Some contracted customers are tacking on purchases of one or two additional loads above their monthly contract allotment. This practice is curtailing some whey manufacturers spot market activity. Price resistance is tempering some demand as buyers are declining offers with higher premiums to the market. Inventories held by resellers are mostly steady. Some Central whey is moving into the Western region to fill supply gaps. A few producers report higher interest in Grade A whey as extra grade whey becomes more difficult to obtain. Prices on animal feed whey increased. Various manufacturers of livestock feed report demand from both heifer replacement and veal raising accounts are mostly steady, but several manufacturers of livestock feed had purchased whey products ahead of time and their internal need to replenish inputs is limited in the near term. Foreign Agricultural Service reports that February 2009 dried whey exports under Schedule B code 0404104000 totaled 16.0 kilotons (kt). This export total is an increase of 15.0% compared to exports during February 2008 and an increase of 12.4% over January 2009. The three largest 2009 U.S. export markets for dried whey, total exports for January February 2009, and percent change in amounts exported compared to 2008 are: Peoples Republic of China, 6.1 kt, (+40.9%); Japan, 6.0 kt (+51.8%); and Canada, 4.1 kt (+36.2%). Exports to those three countries account for about 54% of all U.S. dried whey exported during the first two months of 2009.
F.O.B. CENTRAL: .1875 - .2175 MOSTLY: F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER: .1950 - .2150 .1400 - .1750
Prices for whey protein concentrate 34% moved both higher and lower on the range price series, but the mostly price series is unchanged. Manufacturer inventories range from tight to some product availability. Several contract holders are readily taking additional loads from their regular suppliers beyond monthly obligations. This is limiting the exposure of those manufacturers to the spot market. Spot market offers from resellers are available, with some end users noting offers from that market sector are more frequent. Demand from a few international customers is reportedly slowing in response to unfavorable monetary exchange rates. Foreign Agricultural Service reports that during February 2009, exports of WPC 34% under Schedule B code 0404100500 totaled 7.7 kilotons (kt), an increase of 68.5% compared to January 2009, and a 13.0% increase from February 2008. Exports to Mexico (3.5 kt), China (2.6 kt) and Japan (.6 kt) accounted for 87% of all the WPC 34% exported during the month. Cumulative 2009 exports through February 2009 total 12.2 kt., a decrease of about 8.3% compared to the same time span of 2008. February 2009 exports of WPC 80% under Schedule B code 3502200000 (which includes milk albumin concentrates of two or more whey proteins which contain by weight more than 80% whey proteins calculated on a dry matter basis), totaled 1.0 kt, 4.6% above January 2009, and 7.5% above February 2008. Exports to Canada (.3 kt), China (.1 kt) and Mexico (.1 kt) accounted for 55% of all the WPC 80% exported in February 2009.
F.O.B. EXTRA GRADE 34% PROTEIN: .5300 - .6125 MOSTLY: .5400 - .5550
LACTOSE - CENTRAL AND WEST
DRY WHEY - NORTHEAST
Eastern dry whey prices continued the weekly trend of firming that has prevailed since the first week of March. Manufacturers are receiving more inquiries from prospective customers than they have dry whey to sell. Inquiries are from prospective domestic and foreign customers and most new inquiries cannot be accommodated. Production tends to be committed for sale under contracts and some manufacturers are finessing delivery schedules to keep their contract buyers satisfied. Dry whey supplies are sufficiently tight that there is consideration being given by some manufacturers to attempting to buy condensed whey, supplementing their internal production, for drying to generate more whey powder.
F.O.B. NORTHEAST: EXTRA GRADE AND GRADE A: .2225 - .2650
Lactose prices are unchanged to lower as second quarter contract and spot market prices evolve. Lactose production is steady at some plants, but somewhat lower at others as various cheese manufacturers have curtailed purchases of spot loads of milk during the last week or two. Inventories are mixed. Some buyers have worked out flat price contracts with manufacturers that exceed quarterly boundaries. A few manufacturers report interest from some South American and Asian customers is increasing. Foreign Agricultural Service reports that February 2009 lactose exports under Schedule B code 1702110000 totaled 8.5 kilotons (kt). This is an increase in exports of 18.0% compared to January 2009 but about a 16% decrease from February 2008 export quantities. Cumulative 2009 exports through February total 15.7 kt, a 1.7% decrease from the same time span in 2008. Peoples Republic of China (3.4 kt), Japan (2.5 kt) and Mexico (1.7 kt) are the top three destinations for lactose exports thus far in 2009, accounting for 49% of the 2009 lactose exports.
Including spot sales and up to 3 month contracts. Mesh size 30 - 100.
DRY WHEY - WEST
F.O.B. EDIBLE:
.0850 - .1800
MOSTLY: .1200 - .1650
Whey prices in the Western region continue to increase with a firm undertone to the market. Buyers are often not able to get all the powder that they want. Manufacturer inventories are balanced to short of needs. Production levels are about steady and at seasonally expected levels. Demand is noted as aggressive from both the export market and domestic users. According to FAS, exports of whey for the first two months of the year total 66.5 million pounds, up 16% from the same period last year. Exports account for 39% of total whey production for the two months. The top five export destinations, the volumes sold, and the change from last year are as follows: China 13.5 million pounds, +41%; Japan 13.3 million pounds, +52%; Canada 9.1 million pounds, +36%; Mexico 4.9 million pounds, +215%; and Malaysia 4.4 million pounds, +11%. These five countries account for 68% of the exports for the two months.
NONHYGROSCOPIC: .1975 - .2600 MOSTLY: .2200 - .2400
CASEIN - NATIONAL
The casein market is showing signs of strength at the bottom of the range. Sellers are holding current stocks with more confidence. Some buyers are covered for various periods though some others continue to look to the spot market for product. Supplies continue to move from inventory in Oceania and Europe. Reports indicate that many Europeans producers are holding back new product sales somewhat under the expectation of possible higher prices. European production is increasing seasonally though producers are trying to just make enough to cover regular customers and not build extra inventory this season.
SPOT SALES AND UP TO 3 MONTH CONTRACTS. PRICES ARE F.O.B., U.S. WAREHOUSE FOR EDIBLE NONRESTRICTED AND VARY ACCORDING TO MESH SIZE AND QUALITY.
RENNET: ACID:
2.7500 - 3.0000 2.7500 - 2.9000
DAIRY MARKET NEWS, APRIL 13 17, 2009
-7CCC PURCHASES OF DAIRY PRODUCTS (POUNDS)
FOR THE WEEK OF APRIL 13 17, 2009 TOTAL CONTRACT ADJUSTED PURCHASES ADJUSTMENTS PURCHASES BUTTER Bulk TOTAL CHEESE Block Barrel TOTAL NONFAT DRY MILK Nonfortifed TOTAL -0-0-0-0-08,241,344 8,241,344 -0-0-0-0-01,617,050 1,617,050 -0-0-0-0-06,624,294 6,624,294
CUMULATIVE TOTALS SINCE SAME PERIOD 10/01/08 LAST YEAR 4,639,010 4,639,010 -0-0-0218,219,205 218,219,205 -0-0-0-0-0-0-0-
UNCOMMITTED INVENTORIES WEEK ENDING SAME PERIOD 04/10/09 LAST YEAR -0-0-0-0-0-0-0-0-0-0-0-0-0-0-
MILK EQUIVALENT, FAT SOLIDS BASIS, OF ADJUSTED PURCHASES (MILLION POUNDS) MILKFAT* SKIM** BASIS SOLIDS 1.5 77.1 149.1 2,540.6 123.9 1,207.1 MILKFAT* BASIS 0.0 0.0 0.0 SKIM** SOLIDS 0.0 0.0 0.0
WEEK OF APRIL 13 - 17, 2009 = CUMULATIVE SINCE OCTOBER 1, 2008 = CUMULATIVE JAN. 1 APR. 17, 2009 =
COMPARABLE PERIOD IN 2008 = CUMULATIVE SAME PERIOD LAST YEAR = COMPARABLE CALENDAR YEAR 2008 =
* Factors used for Fat Solids Basis - Butter times 21.80; Cheese times 9.23; and Nonfat Dry Milk times 0.22 **Factors used for Skim Solids Basis - Butter times 0.12; Cheese times 9.90; and Nonfat Dry Milk times 11.64 CCC ADJUSTED PURCHASES FOR THE WEEK OF APRIL 13 - 17 2009 (POUNDS) BUTTER CHEESE NONFAT DRY MILK BULK BLOCK BARREL NONFORTIFIED -0-0-0-0-0-0-06,624,294 -0-0-0-0-
REGION CENTRAL WEST EAST
CCC ADJUSTED PURCHASES SINCE 10/1/08 AND SAME PERIOD LAST YEAR (POUNDS) AND MILK EQUIVALENT AS A PERCENT OF TOTAL BUTTER CHEESE NONFAT DRY MILK MILK EQUIVALENT (%) REGION 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 CENTRAL -0-0-0-0-0-0-0-0WEST 4,639,010 -0-0-0218,219,205 -0100.00 -0EAST -0-0-0-0-0-0-0-0TOTAL 4,639,010 -0-0-0218,219,205 -0100.00 -0SUPPORT PURCHASE PRICES FOR DAIRY PRODUCTS EFFECTIVE JANUARY 2009 BUTTER CHEESE Bulk $1.05 per pound 40# Blocks $1.13 per pound; 500# Barrels $1.10
NONFAT DRY MILK $.8000 per pound U.S. Dairy & Total Cow Slaughter under Federal Inspection, by Regions, for Week Ending 03/28/09 & Comparable Week 2008 U.S. TOTAL % DAIRY OF ALL Regions* (000 HEAD) 1 2 3 4 5 6 7 8 9 10 WEEK SINCE JAN 1 WEEK SINCE JAN 1 2009-Dairy N.A. 0.5 7.2 2.8 16.3 3.5 0.4 N.A. 14.5 4.4 51.1 778.8 47.1 49.5 2008-Dairy N.A. 0.5 7.0 2.6 16.4 3.2 0.3 N.A. 14.2 3.2 48.8 664.5 45.4 44.9 2009-All cows N.A. 0.5 9.0 12.0 29.9 16.4 13.1 N.A. 16.8 7.2 108.4 1,572.5 2008-All cows N.A. 0.6 8.7 12.9 30.4 15.2 14.3 N.A. 15.4 6.2 107.5 1,479.6 SOURCE: The slaughter data are gathered and tabulated in a cooperative effort by the Agricultural Marketing Service, The Food Safety and Inspection Service, and the National Agricultural Statistics Service, all of USDA. CANADIAN DAIRY BREEDING FEMALE IMPORTS WEEK ENDING APRIL 4, 2009 YEAR 2005 2006 2007 2008 JAN 14.14 13.39 13.56 19.32 FEB 14.70 12.20 14.18 17.03 MAR 14.08 11.11 15.09 18.00 APR 14.61 10.93 16.09 16.76 WEEKLY TOTAL 458 2009 CUMULATIVE TOTAL 2,942 SEP 14.30 12.29 20.07 16.28 OCT 14.35 12.32 18.70 17.06 SOURCE: USDA, APHIS NOV 13.35 12.84 19.22 15.51 DEC 13.37 13.47 20.60 15.28
CLASS III MILK PRICES,(3.5% BF) MAY JUN JUL AUG 13.77 13.92 14.35 13.60 10.83 11.29 10.92 11.06 17.60 20.17$ 21.38 19.83 18.18 20.25 18.24 17.32
CLASS I 1/ II III IV
JAN 15.74 10.41 10.78 9.59
FEB 10.72 10.25 9.31 9.45
MAR 9.43 10.36 10.44 9.64
FEDERAL MILK ORDER CLASS PRICES FOR 2009 (3.5% BF) APR MAY JUN JUL AUG SEP 10.36 10.97
OCT
NOV
DEC
1/ Specific order differentials to be added to this base price can be found by going to: www.ams.usda.gov/DairyMarketingStatistics; then select Prices; and then select Principal Pricing Points. $ Revised
-8-
INTERNATIONAL DAIRY MARKET NEWS

Information gathered APRIL 6 - 17, 2009 Prices are U.S. $/MT, F.O.B. port. Information gathered for this report is from trades, offers to sell, and secondary data. This bi-weekly report may not always contain the same products and/or regions. Future reports may be included or withdrawn depending on availability of information. MT = metric ton = 2,204.6 pounds.
WESTERN AND EASTERN EUROPE WESTERN OVERVIEW: Milk production is moving along at expected levels across Western Europe with most countries at or near year ago levels. Declining pay prices have had a great influence on the milk flow which has most countries at or below expected and quota levels. On Wednesday April 8, it was announced that the common or list refund for EU export subsidies will remain unchanged: Skim milk powder 190 Euros per MT, whole milk powder 290 Euros, butter 550 Euros, butteroil 666 Euros, and cheese 198.4 Euros. Under the tendering system, 16,748 MT of skim milk powder were bid with awards of 13,398 MT of this volume at a maximum of 220 Euros per MT; butter, 10,516 MT bid, 4,816 MT receiving awards at a maximum of 600 Euros per MT; and butteroil, bids totaled 1,174 MT, awards of 632 MT at a maximum of 730 per MT. Maximum levels of intervention for butter (30,000 MT) were quickly filled during the early days of the open season thus subsequent offerings are being accepted under a tendering system. Butter intervention totals, as of April 3 are around 51,300 MT. Skim milk powder offerings now total around 97,350 MT with maximum levels that would receive full restitution totaling 109,000 MT. PSA totals for butter are near 68,500 MT. Overall, export sales are slow. The general weak world economy is a major factor with the buying power of importing countries greatly impacted and lower than a year ago. Often, and especially without subsidies, pricing out of Europe is higher than Oceania. BUTTER/BUTTEROIL: Butter markets in Europe are steady to slightly firmer where prices have moved higher. Butter intervention has maxed out at 30,000MT and additional butter is being offered into intervention under the tendering system. On Wednesday, April 8, common or list refund for EU export subsidies were announced as unchanged: butter 550 Euros and butteroil 666 Euros. Under the tendering system, 10,516 MT of butter were bid with awards of 4,816 MT of this volume at a maximum of 600 Euros per MT; butteroil, bids totaled 1,174 MT, awards of 632 MT at a maximum of 730 per MT. Butter intervention totals, as of April 3 are around 51,300 MT. PSA totals for butter are near 68,500 MT. Exporting of both butter and butteroil is slow to develop at current pricing levels, especially where traders find lower prices out of Oceania. 82% BUTTERFAT: 2,700 - 2,900 99% BUTTERFAT: 2,900 - 3,100 SKIM MILK POWDER (SMP): European skim milk powder prices are fully steady. The market undertone is unchanged, characterized by producer offerings into intervention, steady domestic sales, and slow export movements. Production levels are seasonal. Stocks are in excess of demand. On Wednesday April 8, it was announced that the common or list refund for EU export subsidies will remain unchanged with skim milk powder at 190 Euros per MT. Under the tendering system, 16,748 MT of skim milk powder were bid with awards of 13,398 MT of this volume at a maximum of 220 Euros per MT. As of April 3, SMP offerings now total around 97,350 MT with maximum levels that would receive fully restitution totaling 109,000 MT. 1.25% BUTTERFAT: 2,025 - 2,250 WHOLE MILK POWDER (WMP): The whole milk market tone and pricing are mostly steady. Traders and handlers are noting that demand is slightly higher and improved. As other regions are committed, traders can find WMP from European sources. WMP offerings are steady to higher, reflecting increases in production in areas of Western Europe, notably in Ireland and Holland. On Wednesday April 8, it was announced that the common or list refund for EU export subsidies will remain unchanged with whole milk powder at 290 Euros. 26% BUTTERFAT: 2,200 - 2,450 SWEET WHEY POWDER: European whey prices are unchanged from the most recent report in what is described as a stable market. Export markets are slow to rematerialize, yet delivered prices for Europe are in line with U.S. powder. The market tone is also dependent on brand and location. World economic conditions continue to affect buying patterns. NONHYGROSCOPIC: 490 - 575 EASTERN OVERVIEW: Little new news has developed out of Eastern Europe affecting the milk and dairy product markets. Milk production is steady to increasing slightly as the milk season begins to build. Sales of dairy products are fair at best with sales of stored product more likely to move than currently produced products.
OCEANIA OCEANIA OVERVIEW: Seasonal declines in milk output continue as the milk producing season winds down. The autumn season has been favorable weather. Economic conditions in local economies are affecting milk production. Unsettled world conditions, currency valuations, and credit availabilities, all play out as demand factors for exporting and contracting for future exports. Farm milk prices will likely hold through the season. Milk pricing values for next season remain a big concern. Australian milk figures for February are adjusting lower and the seasonal totals are projected to come in at around the same level as the prior season. Early season gains are being erased by later season declines. New Zealand milk flow is trending lower. The milk year totals YTD indicate around a 5% increase over the prior year with the heaviest gains noted early in the year with current numbers declining as the year progresses. Prices for manufactured dairy products are steady to slightly higher. Most products have been contracted or are being held for expected business in coming months. BUTTER: Oceania butter prices are unchanged and the market tone is mostly steady. Butter churning activity is slower and reflective of the declining milk intakes as the season moved towards the end. Offerings are lighter, mainly because butter has been committed. Most of the current production is moving to fill contracted volumes or is being used to fill in for domestic needs in Australia. Production estimates for the season for Australia show butter at +16% over the prior production year. 82% BUTTERFAT: 1,600 - 2,000 CHEDDAR CHEESE: The cheese market is steady with pricing slightly higher on the top end of the range. Cheese output is trending lower as the production season winds down and less milk is moving into cheese facilities. Demand for cheese has been generally good to clear or commit stocks. Product movement into Asia is slower than projected and future sales are being negotiated. Australian cheese production for the season is running 3% lower through February than during the previous year. 39% MAXIMUM MOISTURE: 2,200 - 2,700 SKIM MILK POWDER (SMP): Oceania skim milk powder prices are steady to lower on the top end of the range. The market tone is mostly steady with some pricing moving higher within the range. Most producers and handler are in good balance with their current stock positions. Demand has been good and more SMP has been committed. Drying times are often lower and reflect the declining milk supplies. Australian SMP output for the season through February is running 26% ahead of last year. 1.25% BUTTERFAT: 1,800 - 2,100 WHOLE MILK POWDER (WMP): Oceania whole milk powder prices are steady to higher. The market tone is being buoyed by recent improved pricing levels at the latest globalDairytrade trading in April. Also, with the production season winding down, more WMP is being committed or held for long standing customers. Australian production for the season through February is 2.5% lower that the previous year. 26% BUTTERFAT: 1,900 - 2,250 Exchange rates for selected foreign currencies: April 13, 2009
.8202 Canadian Dollar .2716 Argentina Peso .0761 Mexican Peso .3077 Polish Zloty
.0201 Indian Rupee .5917 New Zealand Dollar .7311 Australian Dollar .0099 Japanese Yen 1.3375 Euro
To compare the value of 1 US Dollar to Mexican Pesos: (1/.0761) = 13.1406 Mexican Pesos. Source: Wall Street Journal
-9CHICAGO MERCANTILE EXCHANGE FUTURES Selected settling prices, (open interest), and volume 1/
Month 04/02 04/03 04/06 CME - CLASS III MILK FUTURES (Pit-Traded) MAR 09 APR 09 MAY 09 JUN 09 JUL 09 AUG 09 SEP 09 OCT 09 NOV 09 10.46 (4809) 75 11.01 (4362) 15 11.40 (4456) 13 12.24 (3993) 11 13.37 (2898) 7 14.46 (2756) 1 15.00 (2597) 1 15.22 (2396) 1 15.23 (2261) 1 10.44 (4387) 0 11.03 (4422) 0 11.45 (4562) 0 12.30 (3995) 5 13.46 (2891) 5 14.63 (2758) 5 15.06 (2597) 0 15.24 (2397) 0 15.25 (2259) 0
04/07
04/08
04/09
04/10
04/13
04/14
04/15
10.98 (4446) 0 11.30 (4573) 0 11.97 (4019) 0 13.20 (2902) 8 14.39 (2746) 0 14.94 (2592) 0 15.20 (2393) 0 15.20 (2249) 0
10.81 (4497) 0 10.99 (4620) 1 11.61 (4086) 0 12.82 (2963) 35 14.12 (2767) 7 14.72 (2599) 7 14.98 (2392) 4 15.01 (2242) 2
10.81 (4496) 0 11.01 (4639) 0 11.66 (4116) 0 12.81 (3023) 11 14.14 (2757) 0 14.77 (2609) 0 15.02 (2400) 0 15.03 (2243) 0
10.78 (4519) 15 10.87 (4683) 0 11.68 (4219) 0 12.78 (3062) 0 14.14 (2779) 0 14.78 (2622) 0 15.02 (2413) 0 15.04 (2242) 0
NO TRADING
10.76 (4511) 6 10.64 (4682) 7 11.59 (4224) 1 12.70 (3030) 21 14.02 (2807) 1 14.67 (2614) 0 14.96 (2420) 0 14.99 (2254) 2
10.74 (4505) 0 10.44 (4701) 0 11.55 (4260) 8 12.76 (3008) 0 13.96 (2793) 0 14.64 (2625) 0 14.95 (2434) 6 14.98 (2246) 0
10.75 (4417) 23 10.40 (4593) 20 11.48 (4311) 1 12.69 (3014) 1 13.96 (2792) 8 14.60 (2634) 0 14.97 (2445) 8 14.99 (2250) 8
CME - CLASS IV MILK FUTURES (Pit-Traded) MAR 09 APR 09 MAY 09 9.85 (30) 0 10.25 (6) 0 10.62 (29) 0 9.64 (30) 0 10.25 (6) 0 10.61 (29) 0
10.08 (6) 0 10.61 (29) 0
10.08 (6) 0 10.60 (44) 0
10.08 (6) 0 10.60 (44) 0
10.08 (6) 0 10.60 (44) 0
NO TRADING
10.08 (6) 0 10.60 (44) 0
10.14 (6) 0 10.60 (44) 0
10.14 (6) 0 10.50 (44) 0
CME CASH SETTLED BUTTER FUTURES (Electronic-Traded) MAR 09 APR 09 MAY 09 JUN 09 JUL 09 113.50 (446) 0 118.25 (463) 0 125.00 (497) 24 128.00 (451) 3 129.00 (487) 11 112.89 (446) 0 118.25 (463) 0 125.00 (502) 5 127.75 (451) 5 129.00 (492) 6
118.25 (463) 0 125.50 (511) 20 127.75 (451) 0 128.75 (500) 8
118.25 (463) 2 125.50 (518) 29 127.00 (451) 14 128.50 (506) 6
118.25 (463) 2 126.00 (516) 14 127.50 (451) 39 128.50 (508) 11
118.00 (463) 0 126.00 (516) 17 128.00 (451) 17 128.50 (515) 10
NO TRADING
118.00 (461) 3 125.75 (516) 4 127.75 (450) 10 128.00 (532) 23
118.00 (461) 0 123.00 (516) 38 127.00 (451) 21 128.00 (532) 0
118.00 (461) 0 123.00 (515) 1 127.00 (451) 0 128.00 (532) 0
CME NONFAT DRY MILK FUTURES (Pit-Traded) MAR 09 APR 09 MAY 09 82.00 (140) 0 83.00 (120) 0 85.75 (123) 0 81.66 (140) 0 83.00 (120) 0 85.70 (123) 0
83.00 (120) 0 85.60 (132) 0
83.00 (120) 0 85.00 (146) 0
83.00 (120) 0 85.75 (150) 4
83.00 (120) 0 85.75 (150) 0
NO TRADING
82.75 (120) 0 85.50 (150) 0
82.50 (120) 0 85.00 (150) 0
82.50 (120) 0 85.00 (150) 0
CME WHEY (Electronic-Traded) MAR 09 APR 09 MAY 09 JUN 09 16.00 (180) 0 18.75 (193) 2 20.50 (172) 4 22.50 (195) 0 16.62 (180) 0 18.75 (193) 0 20.50 (174) 2 22.50 (195) 0
18.75 (193) 0 20.50 (174) 0 22.50 (195) 0
18.75 (193) 0 20.50 (174) 0 22.50 (195) 0
18.75 (193) 0 20.50 (174) 0 22.75 (199) 8
18.75 (193) 1 20.50 (174) 0 23.00 (203) 5
NO TRADING
18.75 (193) 0 20.50 (174) 0 23.00 (203) 0
18.75 (193) 0 20.25 (176) 5 23.25 (207) 4
18.25 (191) 3 20.00 (178) 2 23.25 (207) 0
1/ At the CME open interest for milk -- 200,000 pounds per contract. For more detailed information, you may call our automated voice system at 608-250-3208.
-10-
THE DAIRY OUTLOOK
Dairy Herd Contraction, Already Underway, Is Having an Impact on Prices

Dairy cow slaughter surged ahead of year-earlier levels for the third month in a row in February, aided in part by the sixth Cooperatives Working Together (CWT) buyout since 2003, which removed over 50,000 cows from the dairy herd, mostly in the first quarter of 2009. According to recent Livestock Slaughter reports, dairy cow slaughter had moved ahead of year-earlier levels for much of 2008. The liquidation has been especially notable in the mountain western states. For the country as a whole, slaughter was 17 percent above yearearlier levels in February, 19 percent in January, and 12 percent in December. However, by region, slaughter exceeded year-earlier levels by 46 percent in December and 118 percent in January for region six, which includes New Mexico, Oklahoma, and Texas. January and February slaughter exceeded year-earlier levels by 83 and 49 percent, respectively, in region ten, which includes Idaho, Oregon, and Washington. Other regions also recorded double-digit increases in cow slaughter. Although The CWT program is expected to remove additional cows from the herd by this summer, these data suggest that herd liquidation is well underway. The liquidation appears to be strongest in those regions that expanded most rapidly in the last few years. USDA forecasts that the dairy herd will contract to an average 9.2 million cows in 2009, compared with 9.3 million in 2008. The contraction is expected to continue throughout the year; by the fourth quarter of 2009, the number of dairy cows will likely average about 300 thousand fewer than those on hand in the fourth quarter of 2008. Expected corn and soybean meal prices have been revised upward from earlier forecasts. Higher feed costs will likely continue to pressure producer profits. Milk per cow will climb only incrementally in response to poor producer returns. The yield increase is expected to be less than one-half of 1 percent this year, adjusting for leap-year, continuing the trend toward smaller year-over-year increases that began in 2006. The outcome from these adjustments is a decline in milk production in 2009 to 187.1 billion pounds from 190.0 billion pounds in 2008. Cheese production rose slightly in February after adjusting for the extra day in February 2008. Production of cheddar and mozzarella showed declines even after adjustment. Overall production was higher because of increases in Hispanic cheeses, Italian types beside mozzarella, and other cheeses. February stocks of all cheeses were 11 percent above year-earlier levels. Commercial disappearance for all cheese was down only slightly in January compared with a year earlier, the last month for which figures are available. Market adjustments so far have led to cheese prices increasing from the lows observed earlier in 2009. The decline in milk production is expected to cause further declines in cheese production. Declining retail cheese prices that have lagged falling wholesale prices are finally beginning to boost consumption. Lower prices compared with last year will likely continue to boost consumption. Lower milk production and somewhat higher domestic use will likely raise prices toward the end of 2009. For the year, prices are expected to average $1.270 to $1.320 per pound. Continued on page 11
-11-
The year-over-year decline in butter production was a scant 0.9 percent. Butter stocks declined in February compared with a year earlier. According to Dairy Market News, international demand for butter is weak. Since the first of the year, the Commodity Credit Cooperation (CCC) has contracted to buy 4.6 million pounds of butter, but higher prices are expected to preclude additional butter purchases this year. The domestic demand outlook for butter is similar to that for cheese except that Government purchases have helped ease commercial stocks of the former somewhat. The price scenario for butter is similar to that for cheese, as reduced milk production could boost prices toward the end of 2009. The butter price is expected to average $1.155 to 1.235 per pound for the year. With nonfat dry milk (NDM) prices near support levels, domestic use appears to be strengthening. However, since the first of the year, about 100 million pounds of NDM have moved into CCC inventories, but the pace of removals has slowed. There is some increased foreign demand because production from Oceania, although improved over recent drought years, did not reach expectations. However, a weaker world economy may limit demand. Prices for NDM are forecast to remain above support, averaging 83.0 cents to 87.0 cents per pound in 2009. Whey production for human consumption continues to lag year-ago levels. Output in February was down 3.7 percent from a year ago (adjusting for leap-year in 2008). Whey production has been below year-earlier levels for over a year. Whey prices are still below those of recent years, but reduced supplies and improving export demand have led to a slightly higher price forecast than earlier in the year. Whey prices are expected to average 17.0 cents to 20.0 cents per pound for the year. As a result of slightly higher than expected product prices, the prices for Class III and Class IV milk have been raised slightly to $10.65 to $11.15 per cwt and $9.95 to $10.55 per cwt, respectively, for 2009. The all milk price is expected to average $11.85 to $12.35 per cwt in 2009.
Special Box: Alfalfa

SOURCE: "Livestock, Dairy, and Poultry Outlook", LDP-M-178, April 16, 2009, Economic Research Service, USDA. For more information, contact Roger Hoskin, (202) 694-5148.
-12-
THE DAIRY OUTLOOK
Special Section: Alfalfa Prices Decline from 2008 Highs

Declining returns for dairy producers raise the question, How did we get here? Plummeting milk and dairy product prices are only half the story; the other half is rising feed prices. The milk-feed price ratio serves as an indicator of return on investment for dairy farmers. Milk prices serve as the measure of income farmers receive for their investment in feed, with feed costs making up roughly 50 percent of the total cost of milk production. The USDA estimates the cost of a 16 percent Protein Mixed Ration (which includes corn, soybeans, and alfalfa) that is used to determine the feed component of the milk-feed price ratio. Dairy farmers have feed alternatives beyond those listed in the Mixed Ration. These alternatives, for example, include corn silage instead of alfalfa and barley in lieu of corn. When the price of one feed product rises, dairy farmers are likely to substitute for that feed product if comparable alternatives are available. This article examines alfalfa production and prices, since that is the forage used to calculate the Mixed Ration. While milk prices increased dramatically in 2008, so did prices for corn, soybeans, and alfalfa. Average U.S. alfalfa hay prices received by producers climbed from $135 per ton in August 2007 to reach a record high in of $180 per ton in August 2008, and the calculated 16-percent mixed-ration price increased from $6.77/cwt in August 2007 to $10.19/cwt in August 2008. During most of 2008, high milk prices more than offset the higher input costs. Harvested alfalfa acreage has fallen over the last 10 years, from nearly 24 million acres in 1998 to almost 21 million acres in 2008. In conjunction with declining acreage, dry conditions in many parts of the country led to reduced forage supplies in 2008. Portions of the Plains and Southeast have experienced severe dry conditions during the last several years, leading to reduced forage availability. The demand for alfalfa and other forage alternatives increased as dairy farmers and ranchers in those areas sought feed substitutes for lost forages. Drought affected major alfalfa-growing regions, exacerbating forage supply shortfalls in 2008 as well. Western alfalfa growing areas have experienced dry conditions over the last several years. California, South Dakota, and Idaho were the top three alfalfa-producing States in 2007 and 2008, with California the clear leader. For the last 10 years, California has consistently produced over 6.65 million tons of alfalfa, whereas the second-leading State usually produced around 5 million tons. While California remained the top producing state, alfalfa hay acreage has dropped there over the last ten years, from 1.05 million acres in 1998 to 950,000 acres in 2008. Prospective planting reports as of March 31, 2009 show a decrease of 50,000 acres of all hay for 2009 in California. Since almost two-thirds of hay acreage is planted to alfalfa, some of the decline may manifest itself in lower alfalfa acreage. Dry conditions have been and likely will continue to be a problem for California alfalfa producers. The Bureau of Reclamation has announced that water rationing will be enforced in 2009, with agricultural producers receiving substantially less water than previously contracted from both the Federally managed irrigation system (the Central Valley Project, CVP) and the State irrigation system (the State Water Project, SWP). If current drought conditions hold, there will be no CVP water available south of the Sacramento-San Joaquin River Delta, and only 20 percent of SWP water contracted will be delivered to the area. Key alfalfaproducing counties, such as Kern, Tulare, Merced, and Fresno, all lie south of the Delta and will be impacted by reduced water deliveries out of the CVP and SWP, the two primary sources of surface water in the area. Continued on page 13
-13-
While some producers have access to groundwater sources as an alternative for irrigation, it will likely be rationed between alfalfa and other crops. Farmers can also choose to leave their fields fallow and sell water to the California Drought Water Bank, for a price of $275 per acre foot. Alfalfa production is water-intensive and alfalfa is likely to be one of the first crops to receive less water during periods of water rationing. California hay market analysts and county extension agents suggest that uncertainty surrounding water availability and drought have caused alfalfa producers to reduce acreage in the past. Farmers who choose to leave existing alfalfa fields also have the option of taking fewer cuttings (one or two) and pulling the alfalfa out or letting it go to seed rather than irrigating and harvesting the usual seven to eight cuttings typically yielded in the region. Per a recent study at New Mexico State University, farmers can also water early in the season and forego irrigation towards the end of the growing season and still harvest some alfalfa. While water shortages do affect planting decisions for California alfalfa growers, it seems a bigger issue is falling alfalfa demand by dairy farmers. At current milk prices, dairy producers are culling herds and demanding less alfalfa. Use of alternative feed products has increased in recent years, as a reaction to high feed prices and increased availability of alternatives. In California, for example, over the last 10 years alfalfa hay use in dairy rations has declined as corn silage and alfalfa silage use has increased. It is difficult to say exactly how the present alfalfa market situation will impact dairy producers, but given uncertainty surrounding dairy production, as well as limited water availability, alfalfa producers will most likely be hesitant to expand acreage or increase output. Alfalfa is sold in regional markets, with prices varying greatly across the country. Reduced supplies of and demand for alfalfa may simply create new market equilibrium conditions between alfalfa growers and dairy farmers in particular areas. However, at current milk and feed prices, many dairy farmers are facing financial stress, and some producers could exit the industry unless feed prices fall or milk prices rise by enough to provide positive returns. Over the last 10 years annual alfalfa prices have increased steadily, but breaking that long-run trend, alfalfa prices are expected to decline from a record price of about $162 per ton in 2008. However, this price decline may not be enough for cash-strapped dairy producers. Even as herds are reduced, producers still need to feed their dairy cows. In times of high alfalfa prices it is expected that cheaper alternatives will be considered, a decision that can have significant ramifications for milk output per cow, the primary source of income. SOURCE: "Livestock, Dairy, and Poultry Outlook", LDP-M-178, April 16, 2009, Economic Research Service, USDA. For more information, contact Roger Hoskin, (202) 694-5148.
-14FEDERAL MILK ORDER ADVANCE PRICES, MAY
Class I Base Price. Under the Federal milk order pricing system, the Class I base price for May 2009 is $10.97 per cwt. This price is derived from the Class III skim milk pricing factor of $7.01 and the advanced butterfat pricing factor of $1.2019. A Class I differential for each order's principal pricing point (county) is added to the base price to determine the Class I price. Comparison to Previous Month. Compared to April 2009, the Class I base price increased $0.61 per cwt. For selected consumer products, the price changes are: whole milk (3.25% milk fat), $0.61 per cwt., $0.052 per gallon; reduced fat milk (2%), $0.54 per cwt., $0.047 per gallon; fat-free (skim milk), $0.48 per cwt., $0.041 per gallon. Class II Price Information. The advanced Class IV skim milk pricing factor is $5.79. Thus, the Class II skim milk price for May is $6.49 per cwt., and the Class II nonfat solids price is $0.7211. Product Price Averages. The two-week product price averages for May are: butter $1.1640, nonfat dry milk $0.8181, cheese $1.3030, and dry whey $0.1852.
FEDERAL MILK ORDER CLASS I PRICE INFORMATION1/ 2/ May 2009 Class I Order Number Class I Price (3.5 %) Skim Milk Price $ per cwt. $ per cwt. 001 005 007 006 033 030 032 126 131 124 14.22 14.37 14.77 16.37 12.97 12.77 12.97 13.97 13.32 12.87 13.86 10.26 10.41 10.81 12.41 9.01 8.81 9.01 10.01 9.36 8.91 9.90
Federal Milk Order Marketing Area 3/
Class I Butterfat Price $ per pound 1.2344 1.2359 1.2399 1.2559 1.2219 1.2199 1.2219 1.2319 1.2254 1.2209 1.2308
Northeast (Boston) 4/ Appalachian (Charlotte) 5/ 6/ Southeast (Atlanta) 6/ 7/ Florida (Tampa) 6/ 8/ Mideast (Cleveland) 9/ Upper Midwest (Chicago) 10/ Central (Kansas City) 11/ Southwest (Dallas) 12/ Arizona (Phoenix) Pacific Northwest (Seattle) 13/ All-Market Average
1/ To convert the Class I price per 100 pounds to the Class I price per gallon, divide by 11.63--the approximate number of gallons in 100 pounds of milk. 2/ Note: The mandatory $0.20 per cwt. processor assessment under the Fluid Milk Promotion Order is not included in the Class I prices shown on this table. 3/ Names in parentheses are the major city in the principal pricing point of the markets. 4/ Class I prices at other cities are: New York City, minus $0.10; Philadelphia, minus $0.20; Baltimore, minus $0.25, and Washington, DC, minus $0.25. 5/ Class I prices at other cities are: Knoxville, minus $0.20 and Louisville, minus $1.10. 6/ Effective May 1, 2008, the Class I price surface in these orders were temporarily adjusted. 7/ Class I prices at other cities are: New Orleans, same; Memphis, minus $0.90; Nashville, minus $0.90; and Springfield, MO, minus $1.40. 8/ Class I prices at other cities are: Orlando, same; Miami, plus $0.60; and Jacksonville, minus $0.40. 9/ Class I prices at other cities are: Indianapolis, same; Cincinnati, plus $0.20; Pittsburgh, plus $0.10; and Detroit, minus $0.20. 10/ Class I prices at other cities are: Milwaukee, minus $0.05; and Minneapolis, minus $0.10. 11/ Class I prices at other cities are: Des Moines, minus $0.20; Omaha, minus $0.15; Oklahoma City, plus $0.60; St. Louis, same; and Denver, plus $0.55. 12/ Class I prices at other cities are: Houston, plus $0.60; San Antonio, plus $0.45; Albuquerque, minus $0.65; and El Paso, minus $0.75. 13/ Class I prices at other cities are: Portland, same; and Spokane, same.
-15-
MILLION POUNDS 158 156 154 152 150 148 146 144 142 140 138 JAN
ESTIMATED DAILY AVERAGE U.S. PACKAGED FLUID PRODUCT SALES
FEB
MAR
APR
MAY
JUN
JUL 2006
AUG 2007
SEP
OCT 2008
NOV
DEC 2009
DA TA : DA IRY P ROGRA M S & CDFA , GRA P H B Y DM N
%
33.0 32.5 32.0 31.5 31.0 30.5 30.0 29.5 29.0 28.5 28.0 27.5 27.0 26.5 JAN
PERCENTAGE OF ESTIMATED TOTAL U.S. MILK PRODUCTION USED IN FLUID PRODUCTS
FEB
MAR
APR 2005
MAY 2006
JUN 2007
JUL
AUG 2008
SEP 2009
OCT
NOV
DEC
SOURCE: NASS US MILK PRODUCTION, AMS DAIRY PROGRAMS AND CDFA FLUID SALES DATA
-16-
MILLION POUNDS 5.00 4.75 4.50 4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50 2.25 JAN FEB
ESTIMATED DAILY AVERAGE U.S. ORGANIC FLUID PRODUCT SALES
MAR
APR
MAY
JUN 2007
JUL
AUG 2008
SEP
OCT
NOV
DEC
2006
PER CWT.
2009
MONTHLY MAILBOX PRICE AVERAGE FOR FEDERAL ORDERS AND CALIFORNIA
$22.00 $21.50 $21.00 $20.50 $20.00 $19.50 $19.00 $18.50 $18.00 $17.50 $17.00 $16.50 $16.00 $15.50 $15.00 $14.50 $14.00 $13.50 $13.00 $12.50 $12.00 $11.50 $11.00 $10.50 $10.00
N N M M 4 M 5 M 6 M M S S J J n -0 n -0 n -0 Ja Ja Ja
FO
CA
7 M
8 M
N Ja
Ja
Ja
n -0
n -0
n -0
DAIRY MARKET NEWS

GENERAL NUMBER Elizabeth Frederick (608) 250-3200 Elizabeth.Frederick@AMS.USDA.GOV VOLUME: REPORT: DATE: NORTHEAST/SOUTHEAST Eric Graf (608) 250-3203 Eric.Graf@AMS.USDA.GOV 76 15 04/17/09
INTERNATIONAL Steven Schneeberger (608) 250-3204 Steven.Schneeberger@AMS.USDA.GOV
CENTRAL George Koerner (608) 250-3205 George.Koerner@AMS.USDA.GOV Janet Linder (608) 250-3207 Janet.Linder@AMS.USDA.GOV
INTERNET ADDRESS www.ams.usda.gov/DairyMarketNews RECORDED INFORMATION SYSTEM (608) 250-3208 FAX (608) 250-3216 ________________________ USDA, Dairy Market News 122 E Olin Ave Ste 290 Madison, WI 53713-1475
SOUTHWEST Lester Butch Speth (608) 250-3202 Butch.Speth@AMS.USDA.GOV
NORTHWEST/MOUNTAIN Donald Nelson National Supervisor (608) 250-3206 DonaldO.Nelson@AMS.USDA.GOV
U.S. DEPARTMENT OF AGRICULTURE AGRICULTURAL MARKETING SERVICE DAIRY PROGRAMS

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WEEK OF APRIL 13 - 17, 2009

DAIRY MARKET NEWS

VOLUME 76, REPORT 15

WEEK OF APRIL 13 - 17, 2009

DAIRY MARKET NEWS NATIONAL DAIRY MARKET AT A GLANCE

VOLUME 76, REPORT 15

DAIRY MARKET NEWS, APRIL 13 - 17, 2009

VOLUME 76, REPORT 15

BUTTER MARKETS NORTHEAST

DAIRY MARKET NEWS, APRIL 13 - 17, 2009

VOLUME 76, REPORT 15

VOLUME 76, REPORT 15

1.4700-1.9900 1.4275-1.9125 1.5250-1.8000 1.2850-1.5250 1.3000-1.6100 1.5450-1.7425 2.9875-3.3100

1.3325-1.5900 1.3650-1.7175 1.5450-1.7650 1.5550-1.7150 2.6900-3.1100

1.5675-1.7200 1.8100-1.8275 1.6400-2.5650 1.6900-2.5650 2.1200-2.5200 1.6600-2.6650 2.1100-3.3300

04/13/09 04/01/09 CHANGE % CHANGE

DAIRY MARKET NEWS, APRIL 13 - 17, 2009

-4FLUID MILK AND CREAM

VOLUME 76, REPORT 15

DAIRY MARKET NEWS, APRIL 13 - 17, 2009

-5NDM, BUTTERMILK & WHOLE MILK

VOLUME 76, REPORT 15

CALIFORNIA MANUFACTURING PLANTS - NDM

DRY BUTTERMILK - CENTRAL AND EAST

NONFAT DRY MILK - WEST DRY BUTTERMILK - WEST

DRY WHOLE MILK - NATIONAL

DAIRY MARKET NEWS, APRIL 13 - 17, 2009

-6WHEY, CASEIN & EVAPORATED MILK

VOLUME 76, REPORT 15

LACTOSE - CENTRAL AND WEST

DRY WHEY - NORTHEAST

DRY WHEY - WEST

MOSTLY: .1200 - .1650

2.7500 - 3.0000 2.7500 - 2.9000

DAIRY MARKET NEWS, APRIL 13 17, 2009

-7CCC PURCHASES OF DAIRY PRODUCTS (POUNDS)

VOLUME 76, REPORT 15

REGION CENTRAL WEST EAST

JAN 15.74 10.41 10.78 9.59

FEB 10.72 10.25 9.31 9.45

MAR 9.43 10.36 10.44 9.64

DAIRY MARKET NEWS, APRIL 13 - 17, 2009

VOLUME 76, REPORT 15

INTERNATIONAL DAIRY MARKET NEWS

DAIRY MARKET NEWS, APRIL 13 - 17, 2009

VOLUME 76, REPORT 15

10.08 (6) 0 10.61 (29) 0

10.08 (6) 0 10.60 (44) 0

10.08 (6) 0 10.60 (44) 0

10.08 (6) 0 10.60 (44) 0

10.08 (6) 0 10.60 (44) 0

10.14 (6) 0 10.60 (44) 0

10.14 (6) 0 10.50 (44) 0

118.25 (463) 0 125.50 (511) 20 127.75 (451) 0 128.75 (500) 8

118.25 (463) 2 125.50 (518) 29 127.00 (451) 14 128.50 (506) 6

118.25 (463) 2 126.00 (516) 14 127.50 (451) 39 128.50 (508) 11

118.00 (463) 0 126.00 (516) 17 128.00 (451) 17 128.50 (515) 10

118.00 (461) 3 125.75 (516) 4 127.75 (450) 10 128.00 (532) 23

118.00 (461) 0 123.00 (516) 38 127.00 (451) 21 128.00 (532) 0

118.00 (461) 0 123.00 (515) 1 127.00 (451) 0 128.00 (532) 0

83.00 (120) 0 85.60 (132) 0

83.00 (120) 0 85.00 (146) 0