WEEK OF JUNE 14-18, 2010 DAIRY MARKET NEWS CME GROUP CASH MARKETS (06/18): BUTTER: Grade AA closed at $1.6350. The weekly average for Grade AA is $1.6220 (+.0280). CHEESE: Barrels closed at $1.3850 and 40# blocks at $1.4050. The weekly average for barrels is $1.3570 (+.0200) and blocks, $1.3930 (+.0200). BUTTER HIGHLIGHTS: CME cash butter markets remain firm as prices continue to increase, basically on a daily basis. Cream supplies are very limited and pricing multiples are very firm. Butter producers are competing with other class users and finding it difficult to compete. For some butter producers, they continue to feel that they can pay the higher prices for available cream volumes and put that butter away with confidence for use later in the year. Overall butter demand is fair. Some scattered retail feature activity is being reported, although quite limited. According to the Foreign Agricultural Service, exports of butter and milk fat for January-April 2010 total 29.7 million pounds, up 89% from January-April 2009. The top six export destinations are Saudi Arabia, Morocco, Canada, Russia, South Korea, and Egypt. The top six countries accounted for 66.3% of the exports for the period. Three of the six largest export countries had little to no exports received last year. The exports account for 5.1% of butter production in the U.S. for January-April. In Europe this week, 11,935 MT (26.3 million pounds) of intervention butter was sold at a minimum price of 3551 Euros per MT (around $4,367) and higher. Reports indicate that there are about 2,000 MT of intervention butter left for potential bids. All skim milk powder bids were rejected with the highest bid at 2,212 Euro (approximately $2,270). CHEESE HIGHLIGHTS: Cheese prices are moving higher though not necessarily due to a tighter supply/demand situation. Cheese production remains at very heavy seasonal levels as plants try to handle the milk volume available around peak annual levels through much of the country. Current interest is steady to occasionally improved where buyers are preparing for activities like July 4 th promotions. Weather conditions in many areas of the country remain conducive for milk production. According to FAS, exports of cheese and curd for January-April 2010 total 104.3 million pounds, up 43% from January-April 2009. These exports account for 3.1% of total U.S. cheese production for the period. NATIONAL DAIRY MARKET AT A GLANCE FLUID MILK: Milk production is trending lower as more summerlike weather is affecting the milking herds. Most southern areas are declining off of the seasonal peaks, yet volumes remain heavy. Fat and protein levels of milk are also showing seasonal declines. Milk output is often higher in the Northwest and Upper Midwest. Class I/1 bottled milk sales have leveled off and reflect reduced summer needs. Cream markets are red hot as multiples and overages increase in all areas and basing prices move higher. Demand is highly competitive and prices are being bid higher in order to secure loads across the wide spectrum of cream utilization. DRY PRODUCTS: Nonfat dry milk prices are mixed in an unsettled market. Both domestic and international market interest has slowed with most buyers comfortable with their current positions. For a second time, all bids for EU intervention stocks of SMP were rejected due to price. NDM production is seasonally active to process available milk supplies. Resale loads of older NDM are being offered and sold under current pricing ranges. Foreign Agricultural Service reports that cumulative 2010 through April exports of nonfat dry milk total 179.0 million pounds, a 19% increase compared to the same time span of 2009. Dry buttermilk prices are steady to higher. Demand remains good for the available light offerings and product is readily clearing. Sales of condensed buttermilk are improving and further limiting drying and producers ability to catch up on past contract loads. Dry whey markets are steady to weak. Production is heavy and reflecting the volume of milk moving into cheese production. Demand has slowed with buyers more cautious. Whey protein concentrate 34% prices are steady to higher at the producer levels. Supplies are in balance and demand is fair for current offerings. Higher percentage protein markets are firm with prices continuing to move upwards in tight supply. Lactose prices are steady. Third quarter prices are being negotiated at steady to higher levels. Producers are comfortable with current working inventory levels. ORGANIC DAIRY MARKET NEWS: Organic milk sales continue to increase in April 2010, as well as year-to-date, in contrast with declines in non-organic milk sales. AMS reports Organic Whole Milk sales for April 2010 up 16.8% compared with April 2009, GLANCE CONTINUED ON PAGE 1A ORGANIC DAIRY MARKET NEWS (PAGE 8) MAY FEDERAL MILK ORDER MARKETING AND UTILIZATION (PAGE 9) ****SPECIALS THIS ISSUE***** CME GROUP CASH TRADING JULY FEDERAL MILK ORDER ADVANCE PRICES (PAGE 10) DAIRY GRAPHS (PAGES G1 G2) PRODUCT MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY WEEKLY WEEKLY JUNE 14 JUNE 15 JUNE 16 JUNE 17 JUNE 18 CHANGE* AVERAGE# CHEESE BARRELS $1.3300 $1.3400 $1.3650 $1.3650 $1.3850 $1.3570 (N.C.) (+.0100) (+.0250) (N.C.) (+.0200) (+.0550) (+.0200) 40# BLOCKS $1.3700 $1.3900 $1.4000 $1.4000 $1.4050 $1.3930 (N.C.) (+.0200) (+.0100) (N.C.) (+.0050) (+.0350) (+.0200) NONFAT DRY MILK EXTRA GRADE $1.2500 $1.2500 $1.2500 $1.2500 $1.2500 $1.2500 (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) (-.0020) GRADE A $1.2500 $1.2500 $1.2500 $1.2500 $1.2500 $1.2500 (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) (N.C.) BUTTER GRADE AA $1.6150 $1.6150 $1.6200 $1.6250 $1.6350 $1.6220 (+.0050) (N.C.) (+.0050) (+.0050) (+.0100) (+.0250) (+.0280) CHEESE: carload = 40-44,000 lbs., BUTTER: carlot = 40-43,000 lbs., NDM 42-45,000lbs. *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.
WEEK OF JUNE 14-18, 2010 DAIRY MARKET NEWS GLANCE CONTINUED FROM PAGE 1 and up 5.0% year-to-date compared with 1 year ago. Organic Fat- Reduced Milk sales for April 2010 are up 8.9% from April 2009 and up 3.9% year-to-date compared with 1 year ago. Total Organic Milk Products sales for April 2010 are up 10.7% from April last year and up 4.6% year-to-date compared with last year. This contrasts with a -1.6% April 2010 decline for Total Fluid Milk Products (which includes non-organic) compared with April 2009, and a 2010 year-to date decline of -0.9% compared with last year. Milk processors spanning geographic regions report organic dairy sales for 2010 so far as being stronger than had been expected. The key here is that higher sales had been expected and actual sales are higher yet. The unexpected magnitude of sales increases is buttressed by reports from a number of retailers who report increased category sales for organic dairy over the same period last year. Retail half gallon organic reduced fat (2%) milk prices in the 30 City Series during early June increased in 6 cities, fell in 7 cities, and remained unchanged in 17 cities. Atlanta had the largest increase, 50 cents, rising to $3.99. Washington, D.C. fell most, 40 cents to $3.44. The highest price remained Minneapolis at $4.54 and Denver remained the lowest price at $2.99. Newspaper supermarket ads for the period June 5, 2010 to June 18, 2010 identifying weekly specials, containing organic dairy content, increased to 3,542 of 9,150 surveyed ads from stores in each of the lower 48 states. This is up from 2,186 two weeks ago but slightly below 3,744 four weeks ago. The most significant change for this report is a very significant increase in ads for organic half gallons and a corresponding decrease in ads for organic 8 ounce aseptically packaged milk which, may have a shelf life as long as ten months. The same national organic dairy brand was represented by the ads which predominated two weeks ago for 8 ounce containers, as well as for half gallons this report. Ads for organic yogurt in various sized containers also increased from two weeks ago. NATIONAL DAIRY MARKET AT A GLANCE FEDERAL MILK ORDER MARKETING AND UTILIZATION SUMMARY, MAY 2010 (DAIRY PROGRAMS): During May, about 11.1 billion pounds of milk were received from producers. This volume of milk is 1.6% lower than the May 2009 volume. In May 2010, there were significant volumes of milk not pooled due to intraorder disadvantageous price relationships. About 3.6 billion pounds of producer milk were used in Class I products, 1.0% lower than the previous year. Calendar composition likely had a positive impact on milk used in Class I in 2010 as compared to 2009. The all-market average Class utilization percentages were: Class I = 33%, Class II = 11%, Class III = 46% and Class IV = 10%. The weighted average statistical uniform price was $15.03 per cwt., $0.66 higher than last month and $3.56 higher than last year. JULY FEDERAL MILK ORDER ADVANCE PRICES (DAIRY PROGRAMS): Under the Federal milk order pricing system, the Class I base price for July 2010 is $15.66 per cwt. This price is derived from the Class IV skim milk pricing factor of $10.12 and the advanced butterfat pricing factor of $1.6839. A Class I differential for each order s principal pricing point (county) is added to the base price to determine the Class I price. Compared to June 2010, the Class I base price increased $0.38 per cwt. For selected consumer products, the price changes are: whole milk (3.25% milk fat), $0.39 per cwt., $0.034 per gallon; reduced fat milk (2%), $0.44 per cwt., $0.038 per gallon; fat-free (skim milk), $0.49 per cwt., $0.042 per gallon. The advanced Class IV skim milk pricing factor is $10.12. Thus, the Class II skim milk price for July is $10.82 per cwt., and the Class II nonfat solids price is $1.2022. The two-week product price averages for July are: butter $1.5620, nonfat dry milk $1.3037, cheese $1.4726, and dry whey $0.3698.
DAIRY MARKET NEWS, JUNE 14-18, 2010-2- MONDAY, JUNE 14, 2010 CME GROUP CHEESE SALES: NONE; LAST BID UNFILLED: 1 CAR BARRELS @ $1.3300; 1 CAR 40# BLOCKS @ $1.3700; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER SALES: NONE; LAST BID UNFILLED: 2 CARS GRADE AA @ $1.6150; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.6600 TUESDAY, JUNE 15, 2010 CHEESE SALES: NONE; LAST BID UNFILLED: 2 CARS BARRELS @ $1.3400; 2 CARS 40# BLOCKS @ $1.3900; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER SALES: NONE; LAST BID UNFILLED: 2 CARS GRADE AA @ $1.6150; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.6550 WEDNESDAY, JUNE 16, 2010 CHEESE SALES: NONE; LAST BID UNFILLED: 2 CARS BARRELS @ $1.3650; 2 CARS 40# BLOCKS @ $1.4000; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER SALES: NONE; LAST BID UNFILLED: 2 CARS GRADE AA @ $1.6200; LAST OFFER UNCOVERED: NONE THURSDAY, JUNE 17, 2010 CHEESE SALES: NONE; LAST BID UNFILLED: 2 CARS BARRELS @ $1.3650; 2 CARS 40# BLOCKS @ $1.4000; LAST OFFER UNCOVERED: NONE NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER SALES: 1 CAR GRADE AA @ $1.6250; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.6250; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.6500 FRIDAY, JUNE 18, 2010 CHEESE SALES: 35 CARS BARRELS: 11 @ $1.3800, 2 @ $1.3825, 22 @ $1.3850; 14 CARS 40# BLOCKS: 8 @ $1.4100, 6 @ $1.4075; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: 5 CARS 40# BLOCKS @ $1.4050 NONFAT DRY MILK SALES: NONE; LAST BID UNFILLED: NONE; LAST OFFER UNCOVERED: NONE BUTTER SALES: 2 CARS GRADE AA: 1 @ $1.6300, 1 @ $1.6350; LAST BID UNFILLED: 1 CAR GRADE AA @ $1.6325; LAST OFFER UNCOVERED: 1 CAR GRADE AA @ $1.6650 NORTHEAST The CME Group butter price held steady Tuesday, closing at $1.6150. Prior to Tuesday s close, butter had increased in price in each of the last 13 trading sessions, increasing $.0775 since its last decline on May 25. Cream supplies have become very tight with less standardized cream coming from Class I plants and lower components and milk production off the farm. Increased ice cream production combined with steady cream cheese production is pulling cream away from churns in most cases. Multiples have escalated throughout the week, quickly moving from 145 over the weekend to a range of 155 to 165 by midweek. Some butter makers continue to make butter, even at the higher multiples, due to inventory concerns for this fall. Foreign Agricultural Service report shows January-April 2010 exports of butter total 29.7 million pounds, a 89% increase compared to the same period last year. Leading destinations for U.S. butter are Saudi Arabia at 7.2 million pounds, up 21% from a year ago, Russia at 2.4 million pounds, compared to zero exports a year ago, Canada at 2.6 million pounds up 146%, Morocco at 2.9 million pounds, compared to zero exports a year ago and South Korea at 2.3 million pounds up 211%. These five countries accounted for 58.7% of the total U.S. Butter exports. Prices for bulk butter range 6-8 cents over the market, based on the CME Group with various time frames and averages used. CENTRAL The CME cash butter price gained 2 3/4 cents over the past 5 trading sessions to settle at $1.6200 at midweek and nearing the highest cash price level of $1.6400 thus far this year, occurring in early May. Butter producers continue to actively seek cream volumes which are limited. Even though pricing multiples continue to increase, butter producers are trying to secure as much cream as possible at current price levels as many anticipate higher prices down the road. For most Central butter producers, churning schedules are being maintained at levels which provide them with stocks for current and future needs. In many instances, butter producers and handlers are comfortable with inventorying surplus butter stocks for the future as they see cream volumes and butter stocks to be less available during the second half of the year. Butter demand is seasonally active. Some retail store brand feature activity at $1.8900 per pound is being reported in the Central part of the country this week. Food service orders are seasonally fair and basically at BUTTER MARKETS NASS DAIRY PRODUCT PRICES anticipated levels. Current spot bulk butter prices range from 2-4 cents over various pricing bases and averages per pound. WEST Wednesday s butter trading at the CME Group continued the three week price advance as the market was $.0050 higher to $1.6200. Prices have increased on bids for 14 of the last 15 sessions with only one unchanged day of trading. There have been no sales recorded during this period. Wednesday s price of $1.6200 is only 2 cents lower than the 2010 peak of $1.6400 on May 4. Western butter producers are seeing increased demand for cream from ice cream manufacturers. They continue to fill contracted butter needs with current production and hope to build inventory for the summer needs. Competition for cream is allowing some to sell excess cream at attractive prices. Export sales have slowed as cream is marketed directly into domestic uses. Butter demand remains steady into retail accounts as the 4th of July approaches. Buyers are assessing consumer demand for butter at higher prices. Stocks are adequate for current demand. Prices for bulk butter range from flat to 3.5 cents under the market, based on the CME with various time frames and averages used. According to the CME Group, weekly butter stocks in CME approved warehouses decreased 1.5 million pounds last week to stand at 66.9 million pounds. This total compares to 98.4 million pounds in 2009 and 129.9 million pounds in the comparable week in 2008. Stocks in storage for this week at the CME Group have been above this level since 1998. According to the Foreign Agricultural Service, exports of butter and milkfat for January- April 2010 total 29.7 million pounds, up 89% from January-April 2009. The top six export destinations, their volume and change from last year are as follows: Saudi Arabia 7.2 million pounds, +21%; Morocco 2.9 million pounds, no sales reported last year; Canada 2.6 million pounds, up 146%; Russia 2.4 million pounds, no sales were reported last year; South Korea 2.3 million pounds, up 211%; and Egypt 2.3 million pounds, +5,373%. The top six countries accounted for 66.3% of the exports for the period. Three of the six largest export countries had little to no exports received last year. The exports account for 5.1% of butter production in the U.S. for January-April. U.S. AVERAGES AND TOTAL POUNDS CHEESE 40# BLOCKS CHEESE BARRELS NDM BUTTER DRY WHEY WEEK ENDING 38% MOISTURE JUNE 12 1.4581 1.4274 1.3039 1.5766 0.3683 13,046,378 9,337,147 11,511,717 6,215,725 9,623,030 Further data and revisions may be found on the internet at: http://usda.mannlib.cornell.edu/mannusda/viewdocumentinfo.do?documentid=1450
DAIRY MARKET NEWS, JUNE 14-18, 2010-3- NORTHEAST CHEESE MARKETS WEST After 14 trading sessions without price increases, cheese prices on the CME Group increased Friday, held steady Monday and increased again Tuesday with barrels gaining $.0100 and closing at $1.340, while blocks closed $.0200 higher at $1.3900. The weekly average price declined, despite the recent increases, resulting in lower wholesale prices with the exception of Swiss Cuts, which held steady. Until recently, cheese prices were moving lower and numerous wholesale buyers were holding off purchases for lower prices. Cheese production overall is steady. Cheddar production going into aging programs remains steady with good retail sales. Mozzarella sales have slowed as schools and universities have closed for summer break. In the latest Foreign Agricultural Statistics report, January-April 2010 exports of cheese and curd from the United States totaled 104.3 million pounds, a 43% increase from the same period in 2009. Leading destinations, amounts shipped, and percent changes in amounts shipped compared to the same time period last year include: Mexico, 31.3 million pounds (+3%); Japan, 9.6 million pounds (+128%); South Korea, 11.4 million pounds (+70%); and Canada, 6.9 million pounds (+17%). These four counties account for 56.8% of the total U.S. cheese exports. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000-5000 POUNDS MIXED LOTS) Cheddar 40# Block : 1.7000-1.9750 Process 5# Sliced : 1.4300-1.7400 Muenster : 1.7200-1.9175 Grade A Swiss Cuts 10-14# : 2.9525-3.2750 MIDWEST The cheese market is unsettled as prices have again reached a temporary floor after falling from the recent peak. It remains difficult to raise prices with heavy supplies of cheese available and currently still being produced. Some June Dairy Month promotions are occurring but efforts are down from activities a number of years ago. Some extra finished product, often process, is being packaged and shipped for July 4 th activities. Some operations are running extra product on some lines to build finished product inventory in order to be down for the holiday and still meet customer needs. Buyers have little difficulty in acquiring needed supplies of regular varieties and need just normal lead times on specialties. Mozzarella demand is slower seasonally for many manufacturers. Some extra volumes of cheddar and/or Italian varieties are being placed in aging programs and/or cold temperature storage for later use while prices are in the $1.30s. Some plant operators feel the annual peak is in on their own milk intakes for the year in upper Midwest operations while others are not sure. Reports indicate additional volumes of fluid are still being offered to manufacturers, at least some at a discount. Thus far, the weather has not been conducive for large declines from the peak, keeping plants operating on extended schedules. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000-5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.6975-1.8800 Brick And/Or Muenster 5# : 1.8850-1.9900 Cheddar 40# Block : 1.8300-2.5650 Monterey Jack 10# : 1.8500-2.5650 Blue 5# : 2.2250-2.7100 Mozzarella 5-6# (Low Moisture, Part Skim) : 1.7200-2.6650 Grade A Swiss Cuts 6-9# : 2.3600-3.3300 Cheddar Barrels on Wednesday at the CME Group closed up $.0250 at $1.3650. 40 Pound Blocks were $.0100 higher to close at $1.4000. For the week, Barrels have advanced 3 1/2 cents and Blocks have advanced 3 cents on unfilled bids. No sales have been reported during this week. Sales of cheese on the CME Group were active to finish last week as a perceived bottom was reached. Prices began to move higher as buyers were preparing orders for the upcoming 4th of July holiday. Production of cheese is steady to increased, depending on available milk supplies. Plants are balancing some extra milk in the Northwest as schools let out and Class I needs are reduced. Inventories are clearing well into processing plants for contracted needs. Plants continue to keep a close eye on stocks to keep supplies manageable. Export interest is being assisted by bonuses from the CWT program and clearing some extra supplies. According to FAS, exports of cheese and curd for January-April 2010 total 104.3 million pounds, up 43% from January- April 2009. The exports account for 3.1% of total cheese production in the U.S. for the period. The top four export destinations, their volumes and the change from last year are as follows: Mexico 31.3 million pounds, +3%; South Korea 11.4 million pounds, +70%; Japan 9.6 million pounds, +128%; and Canada 7.0 million pounds, +17%. These four destinations accounted for 56.7% of the January-April exports. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000-5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.4625-1.7200 Cheddar 40# Block : 1.5050-1.8575 Cheddar 10# Cuts : 1.6850-1.9050 Monterey Jack 10# : 1.6950-1.8550 Grade A Swiss Cuts 6-9# : 2.5300-2.9600 FOREIGN The CME Group block cheese price increased Friday for the first time in 14 sessions. The block price increased again Tuesday, closing $.0200 higher at $1.3900. The weekly CME Group average block price continued to move downward, despite recent increases, lowering prices for all domestic varieties of foreign type cheese with the exception of Swiss Cuts, which remained unchanged. The U.S. dollar remains strong against other currencies, providing incentives to foreign cheese importers. WHOLESALE SELLING PRICES: FOB DISTRIBUTORS DOCK DOLLARS PER POUND (1000-5000 POUNDS, MIXED LOTS) : NEW YORK VARIETY : IMPORTED : DOMESTIC : : Blue : 2.6400-5.3900 : 1.8400-3.3275* Gorgonzola : 3.6900-6.6900 : 2.3425-2.6025* Parmesan (Italy) : -0- : 3.2475-3.4500* Provolone (Italy) : 3.4400-5.9900 : 1.8825-2.0400* Romano (Cows Milk) : -0- : 3.0300-5.1725* Sardo Romano (Argentine) : 2.8500-3.6900 : -0- Reggianito (Argentine) : 3.2900-3.5300 : -0- Jarlsberg-(Brand) : 2.9500-4.6900 : -0- Swiss Cuts Switzerland : -0- : 3.0450-3.3675 Swiss Cuts Finnish : 2.5900-2.8500 : -0- * = Price change. WEEKLY COLD STORAGE HOLDINGS - SELECTED STORAGE CENTERS IN THOUSAND POUNDS - INCLUDING GOVERNMENT STOCKS BUTTER : CHEESE 06/14/10 10,014 : 127,094 06/01/10 9,260 : 125,497 CHANGE 754 : 1,597 % CHANGE 8 : 1
DAIRY MARKET NEWS, JUNE 14-18, 2010-4- E A S T Spot shipments of Grade A milk into or out of Florida and other Southeastern states THIS WEEK LAST WEEK LAST YEAR IN OUT IN OUT IN OUT FLORIDA 0 349 0 342 0 240 SOUTHEAST STATE 0 0 0 0 0 0 Northeast milk production is beyond its seasonal peak, but production remains fairly heavy due to the lack of extended periods of hot humid weather adversely affecting cow comfort. The Mid Atlantic region has experienced hot humid weather, resulting in declining components and decreases in milk production in some areas. Manufacturing milk supplies remain heavy with marginal declines in production offset by additional supplies from declining Class I usage, due to school closures. Florida is very warm with highs in the 90 s, resulting in production declines. Class I demand has declined and sales are flat. Florida exported 349 loads this week. The Southeast is the only region in the East to report Class I sales as steady to slightly higher. Very hot humid weather has covered portions of the region and has caused declines in milk production, especially in Tennessee, Kentucky and Georgia. Temperature issues are beginning to occur in the Southeast and Florida. Problems are occurring most often in those tankers that have not been pre-cooled. Producers are encouraged to check their compressors to ensure they are operating efficiently. Condensed skim sales to Class II and III concerns are pulling supplies away from dryers, lessening overall Class IV production. Cream supplies are tight due to less standardized cream coming from Class I plants and lower components and milk production off the farm. Cream multiples have escalated throughout the week. Multiples moved from 145 over the weekend to the 150-165 range by midweek with unconfirmed sales significantly above the range. The 165 multiple level, is as high as multiples have been since reaching 175 in August of 2006. Demand for cream is good as ice cream production has increased and cream cheese production is steady. FLUID CREAM AND CONDENSED SKIM PRICES IN TANKLOT QUANTITIES SPOT PRICES OF CLASS II CREAM, $ PER LB BUTTERFAT F.O.B. PRODUCING PLANTS: NORTHEAST - 2.3113-2.6301 F.O.B. PRODUCING PLANTS: UPPER MIDWEST - 2.1200-2.4069 PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS: NORTHEAST - CLASS II - INCLUDES MONTHLY FORMULA PRICES - 1.30-1.35 NORTHEAST - CLASS III - SPOT PRICES - 1.00-1.05 M I D W E S T Class I interest is steady at best, mostly lighter where remaining schools have closed for the summer. The lighter bottling schedules generate less standardized cream for internal use or sale. Cream demand remains strong and supplies are very tight. Ice cream/mix demand for cream has buyers searching for product. Some customers are unable to secure desired volumes at preferred times. Churning is lighter as some churns are selling cream rather than making butter. Cream multiples are seasonally high, particularly after last year with unconfirmed reports of even higher multiples. Also, orders for dips and sour cream are heavier. Condensed skim interest from Class III accounts is improved due to the price differential to NDM. Manufacturing milk demand is spotty, often weak. Generally, the supply exceeds the current interest and prices quoted are generally below class. Plants continue to operate on heavy schedules as milk FLUID MILK AND CREAM intakes from members/patrons varies from slightly below to still increasing toward the annual peak. Certainly, the cool, often wet weather through most of the upper Midwest is conducive to cow comfort/milk production. Milk components are steady to drifting lower. Wet fields have stopped most field activities from planting and spraying through harvest of first and/or second cutting. Some fields cut last week remain in the field, turning darker by the day. W E S T The July 2010 Class 1 prices in CALIFORNIA range from $17.14 in the north to $17.42 in the south. The statewide average Class 1 price based on production is $17.17. The average is $1.47 higher than June 2010 and $5.27 more than July 2009. CALIFORNIA milk production is steady to slightly lower overall. Some areas in more northern parts of the state are still seeing slight weekly gains while more southern areas are seeing declines. In general, milk intakes are less than year ago levels with the gap now narrowing to around 1%. Processing plants are running on expected schedules and are able to handle the current milk situation. Milk prices have increased and yet remain below cost of production for many producers. The outlook is better than a year ago, but profitability measures continue to be assessed. The considerations of cow retirements under the CWT program are being analyzed to see if participation is a viable option. ARIZONA milk production is beginning to move lower and the impacts of hotter temperatures are being noted on the milking herds. While temperatures are hot, the humidity levels remain low. Plants are running well and able to process available milk. Class I sales have moved lower and not much news happening on retail movement. NEW MEXICO milk output is trending steady to lower at levels below a year ago. Plants are running well and processing available milk supplies. Shipments to other regions are lighter. Western CREAM markets are firm to stronger. Higher multiple and basing points are both contributing to higher cream pricing. Multiples range from 122-150 and vary based on class usage and basing points. Some buyers are willing to pay to keep cream in their plants and output happening. The CME butter price continues to move higher, up 2.75 cents from a week ago, to close at $1.6200 at midweek. Cream demand is strong from all segments: butter, cheese, ice cream and other class usages. Milk production in the PACIFIC NORTHWEST is following seasonal trends with increases in production due to increased numbers of cows as much as spring flush. Weather conditions are warming, although the overall trend for spring has been cool and wet. Class I sales are reduced as schools let out for summer. Manufacturing plants are seeing increased volumes, but are able to handle available supplies. High cream demand is allowing for some cream to be shipped to other parts of the country. Forage harvest is late this season and there are some questions as to availability of high quality dairy hay. UTAH and IDAHO milk production levels are at expected levels. The cool spring has delayed first crop hay harvesting. Farmers have taken to cutting hay and chopping it for haylage, with lighter supplies being baled. Bankers are reported to be keeping a close eye on day to day operations for some financially strapped producers. Purchases of inputs are undergoing closer scrutiny. Replacement heifer auctions in Idaho report steady prices with one auction reporting top heifer price at $1440 with the top 50 average at $1320. Manufacturing plants are handling local milk supplies and in some cases are looking for additional quantities.
DAIRY MARKET NEWS, JUNE 14-18, 2010-5 - NDM, 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: Prices for Central nonfat dry milk are mostly lower, and the market tone is weaker. Farm milk production is hovering around peak volumes in the region, while solids test values are declining seasonally. Plants in the region are actively drying low heat NDM and bulking up reserves. Although NDM holdings are building, many producers are not offering loads heavily onto the spot market. This is reportedly due, in part, to concerns about sending bearish signals to the market during this traditionally heavy production cycle. Buyers are purchasing cautiously, with many awaiting a definitive indication of market direction before committing to block purchases. Some industry participants anticipated a generally weaker market to develop soon after the supplies of intervention skim milk powder became available in the EU. However, all bids that were due this week on intervention stocks have again been rejected, with the highest bid reportedly at about $1.2338/lb. This is leaving the global market somewhat unsettled, and by extension, keeping domestic buyers waiting for market indicators. EAST: Prices for nonfat dry milk continue to trend lower this week in fairly light spot market activity. Brokers engaged in some profit taking, selling older inventory in the $1.20 to $1.25 range. Manufacturers were unwilling to go below the $1.25 level. Production of nonfat dry milk is declining in most areas, except for the upper Northeast, where milk intakes remain at levels just beyond their seasonal peak. Increased condensed skim sales to ice cream concerns are continuing to limit the amount of manufacturing supplies headed to the dryers. Current production is moving well through contracts, but spot market demand is lackluster and flat. Inventories have been building, but are not viewed as burdensome by most manufacturers. Foreign Agricultural Service reports that cumulative 2010 through April exports of nonfat dry milk under Schedule B code 0402100000 total 179.0 million pounds, about a 19% increase compared to the same time span of 2009. Total exports for 2010, and percent changes in amounts exported compared to 2009 are: Mexico, 50.7 million pounds (-16%); Philippines, 27.4 million pounds (+44%) and Indonesia, 24.0 million pounds (+23%). These countries are the top three destinations for nonfat dry milk thus far in 2010, accounting for 57% of the total nonfat dry milk exports. F.O.B. CENTRAL/EAST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: 1.2500-1.3500 MOSTLY: 1.2800-1.3500 HIGH HEAT: 1.3900-1.4250 NONFAT DRY MILK - WEST Western low/medium heat nonfat dry milk prices are generally steady overall, with some mixed prices transactions noted in the range and mostly series. The market tone is steady to unsettled and looking for direction. International markets are not aggressive in looking for U.S. NDM/SMP and for a second time, EU intervention tenders were rejected because of too low prices being bid. Domestic U.S. demand is mixed with lower trends noted from cheese accounts who can utilize milk offerings. Current regional production is trending lower and reflecting lower milk output. Plant capacity is adequate and not being taxed. Stocks are available to satisfy current demand and are building where sales have slowed. High heat prices are higher in light market trading and are often increasing because of different indices moving than due to any bidding. Demand is fair to good for the current supplies. Some producers are catching up on contract loads. Stocks are light. F.O.B. WEST: Includes EXTRA GRADE and GRADE A LOW/MEDIUM HEAT: 1.2000-1.3625 MOSTLY: 1.2800-1.3200 HIGH HEAT: 1.3100-1.4050 DRY BUTTERMILK - CENTRAL AND EAST CENTRAL: Dry buttermilk production in the Central region is steady, although interest in condensed buttermilk continues to keep production volumes from reaching their full potential. Offers from manufacturers are intermittent, with pricing confidence evident. Brokers and traders indicate, though, some price resistance is emerging from their buyers, evidenced by fresh product loads unable to be passed through to end users at current prices. Some concerns are noted regarding the current inverted price relationship between nonfat dry milk and dry buttermilk. EAST: Dry buttermilk prices in the East are steady with very tight supplies and very limited spot market activity. Production has declined as cream supplies have become tight due to reduced standardized cream from Class I plants, strong pulls from Class II concerns and reduced components and milk production off the farm. Even when cream supplies make it to the churn, condensed buttermilk sales limit production. Due to the tight supplies some users have sought and secured alternative products. Current supplies are primarily moving through contracts with little available for spot market activity. F.O.B. CENTRAL/EAST: 1.2800-1.4200 DRY BUTTERMILK - WEST Western dry buttermilk prices continue to trend higher in a lightly tested market. The undertone remains firm and is characterized by limited spot availability. Many producers are behind on filling contract loads. There are limited offerings in resale channels. Demand is good seasonally. Production is often lower with cream moving to other channels besides butter production and more condensed buttermilk is being moved. Producers stocks of dry buttermilk are light. F.O.B. WEST: 1.2800-1.3300 MOSTLY: 1.2900-1.3200 DRY WHOLE MILK - NATIONAL Dry whole milk prices are unchanged. Inventories are reported as light, and some buyers are turning to international product to meet immediate needs. Production is limited to a few sites having dryer time available as many plants are concentrating on clearing condensed skim loads. Foreign Agricultural Service reports that cumulative 2010 through April exports of dry whole milk and cream under Schedule B code 0402210000 more than doubled compared to the same time period in 2009 and total about 27.6 million pounds. Vietnam (11.1 million pounds) is the top destination for dry whole milk and cream exports in 2010, accounting for 40% of the exports thus far. F.O.B. PRODUCING PLANT: 1.5500-1.6700 CALIFORNIA MANUFACTURING PLANTS - NDM WEEK ENDING PRICE TOTAL SALES SALES TO CCC June 11 $1.2815 7,152,422 0 June 4 $1.2815 5,320,100 0 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.
DAIRY MARKET NEWS, JUNE 14-18, 2010-6- WHEY, WPC 34%, LACTOSE & CASEIN 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 The Central dry whey market is unchanged on the mostly price series, and fractionally lower on the range price series. The market tone is mixed. Some spot loads of dry whey are reportedly available from various manufacturers as well as brokers/traders. Dry whey spot loads are moving well, aided by some pricing incentives. Some minimal pushbacks from contract buyers are reported. Dry whey production remains at or close to plant capacities, and seasonally high farm milk intakes are prompting some plants to offer spot loads of milk to the market. ANIMAL FEED DRY WHEY prices are steady. Various participants in this market indicate there has been some reawakening of interest in dairy proteins as a replacement for fish meal product used in the hog industry. Foreign Agricultural Service reports that cumulative 2010 through April exports of dried whey under Schedule B code 0404104000 totaled 171.7 million pounds, about a 16% increase compared to the same time span of 2009. The three largest 2010 U.S. export markets for dried whey, total exports for the year, and percent change in amounts exported compared to the same 2009 timeframe are: China, 39.3 million pounds (+14%); Mexico, 20.4 million pounds (+74%); and Japan, 17.3 million pounds (unchanged). Exports to those three countries account for about 45% of all U.S. dried whey exported during the first four months of 2010. F.O.B. CENTRAL:.3100 -.3700 MOSTLY:.3250 -.3650 F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:.2425 -.3025 DRY WHEY - NORTHEAST Dry whey prices are generally steady with the spot market flat in light trading. Some traders are finding it advantageous and supplies more readily available to purchase product in the Midwest and ship it east. Production is mostly steady with some marginal declines in those areas experiencing reduced milk production. The relatively strong U.S. dollar continues to dampen export demand. The latest Foreign Agricultural Statistics report shows 171.7 million pounds dry whey were exported from the United States during January-April 2010, up 16% from January-April 2009. Leading world regional destinations, amounts shipped, and year to year percentage changes in amounts shipped are as follows: East Asia, 69.3 million pounds (+4%); Southeast Asia, 52.7 million pounds (+32%); and North America, 34.7 million pounds (+25%). These three regions comprised 91.2% of the total exports for January-April 2010. F.O.B. NORTHEAST: EXTRA GRADE AND GRADE A:.3550 -.3850 DRY WHEY - WEST Whey prices were steady to weak with the upper ends of the market showing the weakness. Buyers appear content with current supplies. Whey production is following normal seasonal patterns. As schools let out for the summer, excess Class I milk is going into manufacturing channels. Cheese plants are operating busy schedules and whey stream supplies are heavier. Inventories remain at manageable levels for current needs. Contracted sales are steady and constitute the bulk of the trade. Export channels are moving without interruption even though the Chinese government has not fully resolved the import issues on U.S. dairy products. According to the Foreign Agricultural Service, exports of whey for January-April total 171.7 million pounds, up 15.5% from January-April 2009. The exports account for 49.4% of the total whey production in the U.S. for January-April. The top five export destinations, their volumes and change from last year are as follows: China 39.3 million pounds, +14%; Mexico 20.4 million pounds, +74%; Japan 17.3 million pounds, unch; Canada 14.3 million pounds, -10%; and Malaysia 13.1 million pounds, +43%. These five countries accounted for 104.4 million pounds or 60.8% of the exports for January-April. Prices for WPC 34% are unchanged on the mostly price series, and unchanged to higher on the range price series. Interest in spot sale offerings from manufacturers is described as tepid, but a few transactions taking place at higher prices represent preferred-supplier purchases by end users. Inventories are generally steady to building. Various brokers and traders indicate the acceptable market ranges expressed by their customer bases are weaker than conveyed by F.O.B. price reports, as discounts to the market are often necessary to successfully resell product. In addition, many end users in the feed industry have access to downgraded dairy protein products that offer more favorable costs per unit of protein, thus removing some traditional end users from the near term demand side of the edible market. Foreign Agricultural Service reports that cumulative 2010 through April exports of WPC 34% under Schedule B code 0404100500 totaled 98.5 million pounds, a 79% increase compared to the same time span in 2009. Exports to China (37.0 million pounds), Mexico (26.1 million pounds) and Canada (12.0 million pounds) accounted for 79% of all the WPC 34% exported thus far. F.O.B. EXTRA GRADE 34% PROTEIN:.8800-1.0100 MOSTLY:.9200 -.9700 LACTOSE - CENTRAL AND WEST The lactose market is unchanged on the mostly price series. Inventories are steady to higher, with most manufacturers indicating holdings are comfortable for this time of year. Contract loads are reportedly shipping regularly, in many cases including those shipments destined for China. Initial concerns that dairy product shipments may be banned from entering China have not been realized. Third quarter contracting is progressing, with various producers indicating finalized prices are similar to fractionally higher when compared to those obtained for second quarter. Foreign Agricultural Service reports that cumulative 2010 through April lactose exports under Schedule B code 1702110000, anhydrous, >99% solids, totaled 94.3 million pounds. This is an increase in exports of 22% compared to the same time span in 2009. Mexico (12.9 million pounds, +75%), Japan (11.4 million pounds, -5%) and China (8.4 million pounds, -59%) are the top three destinations for lactose exports thus far in 2010, accounting for 36% of lactose exports. Including spot sales and up to 3 month contracts. F.O.B. EDIBLE, NON PHARMACEUTICAL.2400-.4300 MOSTLY:.3000-.3600 CASEIN NATIONAL Casein markets and prices are firm. Conversations continue to center around supply availability. Most suppliers remain optimistic that they will have adequate stock to meet contractual needs, but continue to state that spot availability will be limited. In most instances, European producers indicate that they are gearing their production towards known needs. Oceania suppliers state that their stocks will be in close balance with some feeling that they may need to reach into the new production season. Oceania producers are very optimistic about the upcoming milk production season and are hopeful that they will once again be back on track with projections. 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: 3.6000-4.2000 ACID: 3.6000-4.1500 NONHYGROSCOPIC:.3450 -.4200 MOSTLY:.3650 -.4125
DAIRY MARKET NEWS, JUNE 14 18, 2010-7- CCC PURCHASES OF DAIRY PRODUCTS (POUNDS) FOR THE WEEK OF JUNE 14-18, 2010 CUMULATIVE TOTALS UNCOMMITTED INVENTORIES TOTAL CONTRACT ADJUSTED SINCE SAME PERIOD WEEK ENDING SAME PERIOD PURCHASES ADJUSTMENTS PURCHASES 10/01/09 LAST YEAR 06/11/10 LAST YEAR BUTTER Bulk -0- -0- -0- -0-4,639,010-0- -0- TOTAL -0- -0- -0- -0-4,639,010-0- -0- CHEESE Block -0- -0- -0- -0- -0- -0- -0- Barrel -0- -0- -0- -0- -0- -0- -0- TOTAL -0- -0- -0- -0- -0- -0- -0- NONFAT DRY MILK Nonfat -0- -0- -0-132,276 258,355,104-0- -0- TOTAL -0- -0- -0-132,276 258,355,104-0- -0- MILK EQUIVALENT, FAT SOLIDS BASIS, OF ADJUSTED PURCHASES (MILLION POUNDS) MILKFAT* SKIM** MILKFAT* SKIM** BASIS SOLIDS BASIS SOLIDS WEEK OF JUNE 14-18, 2010 = 0.0 0.0 COMPARABLE PERIOD IN 2009 = 1.7 92.3 CUMULATIVE SINCE OCTOBER 1, 2009 = 0.0 1.5 CUMULATIVE SAME PERIOD LAST YEAR = 158.0 3,007.8 CUMULATIVE JAN. 1 - JUNE 18, 2010 = 0.0 0.0 COMPARABLE CALENDAR YEAR 2009 = 132.8 1,674.3 * 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 JUNE 14-18, 2010 (POUNDS) BUTTER CHEESE NONFAT DRY MILK REGION BULK BLOCK BARREL NONFORTIFIED CENTRAL -0- -0- -0- -0- WEST -0- -0- -0- -0- EAST -0- -0- -0- -0- CCC ADJUSTED PURCHASES SINCE 10/1/09 AND SAME PERIOD LAST YEAR (POUNDS) AND MILK EQUIVALENT AS A PERCENT OF TOTAL BUTTER CHEESE NONFAT DRY MILK MILK EQUIVALENT (%) REGION 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 2009/10 2008/09 CENTRAL -0- -0- -0- -0- -0- -0- -0- -0- WEST -0-4,639,010-0- -0-132,276 258,355,104 100.0 100.0 EAST -0- -0- -0- -0- -0- -0- -0- -0- TOTAL -0-4,639,010-0- -0-132,276 258,355,104 100.0 100.0 BUTTER Bulk $1.05 per pound CHEESE 40# Blocks $1.13 per pound; 500# Barrels $1.10 NONFAT DRY MILK $.80 per pound SUPPORT PURCHASE PRICES FOR DAIRY PRODUCTS EFFECTIVE NOVEMBER 1, 2009 U.S. Dairy & Total Cow Slaughter under Federal Inspection, by Regions, for Week Ending 05/29/10 & Comparable Week 2008 U.S. TOTAL % DAIRY OF ALL Regions* (000 HEAD) 1 2 3 4 5 6 7 8 9 10 WEEK SINCE JAN 1 WEEK SINCE JAN 1 2010-Dairy N.A. 0.5 6.5 2.4 17.0 2.9 0.2 N.A. 15.6 2.7 49.3 1,194.4 40.6 44.4 2009-Dairy N.A. 0.5 6.3 2.4 13.6 4.9 0.3 N.A. 15.7 4.0 48.9 1,222.9 46.7 47.9 2010-All cows N.A. 0.6 8.2 14.0 31.7 22.6 13.3 N.A. 20.8 6.7 121.5 2,691.6 2009-All cows N.A. 0.5 7.9 12.1 26.3 18.0 11.7 N.A. 18.1 6.9 104.6 2,554.3 SOURCE: The slaughter data are gathered and tabulated in a cooperative effort by the Agricultural Marketing Service, The Food Safety and Inspection Service, and the National Agricultural Statistics Service, all of USDA. CANADIAN DAIRY BREEDING FEMALE IMPORTS WEEK ENDING WEEKLY TOTAL 2010 CUMULATIVE TOTAL JUNE 5 316 6,390 SOURCE: USDA, APHIS CLASS III MILK PRICES,(3.5% BF) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2006 13.39 12.20 11.11 10.93 10.83 11.29 10.92 11.06 12.29 12.32 12.84 13.47 2007 13.56 14.18 15.09 16.09 17.60 20.17$ 21.38 19.83 20.07 18.70 19.22 20.60 2008 19.32 17.03 18.00 16.76 18.18 20.25 18.24 17.32 16.28 17.06 15.51 15.28 2009 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98 FEDERAL MILK ORDER CLASS PRICES FOR 2010 (3.5% BF) CLASS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC I 1/ 15.03 14.84 14.34 13.22 13.80 15.28 15.66 II 15.22 15.65 14.46 13.78 14.90 III 14.50 14.28 12.78 12.92 13.38 IV 13.85 12.90 12.92 13.73 15.29 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
DAIRY MARKET NEWS, JUNE 14-18, 2010-8 - ORGANIC DAIRY MARKET NEWS Information gathered June 7-18, 2010 ORGANIC DAIRY FLUID OVERVIEW Organic milk sales continue to increase in April 2010, as well as year-todate, in contrast with declines in non-organic milk sales. AMS reports Organic Whole Milk sales for April 2010 up 16.8% compared with April 2009, and up 5.0% year-to-date compared with 1 year ago. April sales were 34 million pounds and year to date sales through April were 130 million pounds. Organic Fat-Reduced Milk sales for April 2010 are up 8.9% from April 2009 and up 3.9% year-to-date compared with 1 year ago. April sales were 106 million pounds and year-to-date sales were 421 million pounds. Total Organic Milk Products sales for April 2010 are up 10.7% from April last year and up 4.6% year-to-date compared with last year. This contrasts with a -1.6% April 2010 decline for Total Fluid Milk Products (which includes non-organic) compared with April 2009, and a 2010 year-to date decline of -0.9% compared with last year. Total Fluid Milk Products data is adjusted for calendar year composition. Milk processors spanning geographic regions report organic dairy sales for 2010 so far as being stronger than had been expected. The key here is that higher sales had been expected and actual sales are higher yet. The unexpected magnitude of sales increases is buttressed by reports from a number of retailers who report increased category sales for organic dairy over the same period last year. ORGANIC DAIRY RETAIL OVERVIEW MONTHLY RETAIL MILK PRICE COMPARISON FOR 30 CITIES: Retail half gallon organic reduced fat (2%) milk prices in the 30 City Series during early June increased in 6 cities, fell in 7 cities, and remained unchanged in 17 cities. Atlanta had the largest increase, 50 cents, rising to $3.99. Washington, D.C. fell most, 40 cents to $3.44. The highest price remained Minneapolis at $4.54 and Denver remained the lowest price at $2.99. Wichita, KS Washington, DC Half Gallon Organic 2% Milk Price Change: June from May 2010 NATIONALLY ADVERTISED PRICE COMPARISON: Newspaper supermarket ads for the period June 5, 2010 to June 18, 2010 identifying weekly specials, containing organic dairy content, increased to 3,542 of 9,150 surveyed ads from stores in each of the lower 48 states. This is up from 2,186 two weeks ago but slightly below 3,744 four weeks ago. The most significant change for this report is a very significant increase in ads for organic half gallons and a corresponding decrease in ads for organic 8 ounce aseptically packaged milk which, may have a shelf life as long as ten months. The same national organic dairy brand was represented by the ads which predominated two weeks ago for 8 ounce containers, as well as for half gallons this report. Ads for organic yogurt in various sized containers also increased from two weeks ago. Regional Organic Dairy Ad Trends Current Period. Organic dairy content in Northeast and Midwestern weekly supermarket ads continued to lead all regions, as was the case two, four and six weeks ago. The Northeast had 32.4% of organic dairy ads and the Midwest, 22.3%. 40 35 30 25 20 15 10 Percent 5 0 32.4 Regional Organic Dairy Ads As A Percentage of Total Surveyed National Organic Dairy Ads 2010 - Reporting Week 24 4.8 22.3 6.7 20.0 13.8 NE SE MW SC SW NW Region Syracuse, NY St. Louis, MO Seattle, WA Portland, OR Pittsburgh, PA Phoenix, AZ Philadelphia, PA Omaha, NE Oklahoma City, OK New Orleans, LA Minneapolis, MN Milwaukee, WI Miami, FL Louisville, KY Kansas City, MO Indianapolis, IN Houston, TX Hartford, CT Fort Lee, NJ Detroit, MI Denver, CO Dallas, TX Cleveland, OH Cincinnati, OH Chicago, IL Boston, MA Baltimore, MD Atlanta, Ga June May Organic dairy ad percentages for other regions are: Southwest, 20.0%; Northwest, 13.8%; South Central, 6.7%; and Southeast, 4.8%. Product Emphasis. Individual store ads may contain more than one type of organic dairy featured item, or multiple brands of the same item and size. Thus, numbers shown below for product emphasis exceed total organic ad numbers. The trend of the last ten weeks with organic milk and yogurt alternating being first and second in ad placements continues. Organic milk narrowly leads with 2,524 ad placements compared with organic yogurt, 2,079. Organic milk ad placements dramatically returned to half gallon containers as the dominant category, 69.8% (1,763) of all organic milk ads. 8 ounce aseptically packaged milk, fell from 66% of ads two weeks ago, to 19.3% (486) this report. Organic gallons accounted for 10.9% (275) of milk ads. The greatest concentration for organic yogurt placements remains 6 ounce yogurt, which has dominated for a number of weeks. There were 927 ads for 6 ounce organic yogurt this two week period, 44.6% of 2,079 total organic yogurt ads. The second highest organic yogurt product was 4 ounce baby yogurt, 234. Remaining organic yogurt product numbers were: 32 ounce, 216; 6 ounce smoothie, 196; 2 ounce squeezer, 196; 5.3 ounce Greek, 168; and 16 ounce, 118. Organic milk ads appeared in all regions. The highest concentration of milk ads, 28.1%, appeared in the Southwest. The other regions current percentages of total national placements are: Northwest, 19.3%; Northeast, 21.6%; Southeast, 5.2%; Midwest, 16.4%; and South Central, 9.4%. This comparison is derived from prices collected by Federal Milk Market Administrators during the first non-friday or weekend 10 days of each month in 1 outlet of each of the 2 largest food store chains in 30 cities or metropolitan areas. The price listed represents the simple average of the 2 prices. CONTINUED ON PAGE 8-A.
DAIRY MARKET NEWS, JUNE 14-18, 2010-8A - ORGANIC DAIRY MARKET NEWS Information gathered June 7-18, 2010 SW 28.1% ORGANIC MILK FEATURES Regional % of Surveyed Supermrket Ads Report Week 24, 2010 NW 19.3% SC 9.4% NE 21.6% MW 16.4% SE 5.2% Half Gallons. The national weighted average advertised price for half gallons of organic milk fell to $3.07, 62 cents lower than two weeks ago. The top of the range remained unchanged at $3.99 while the bottom fell 49 cents to $2.50. A factor in the lower weighted average advertised price is a significant percentage of ads being priced at $2.99. $4.60 $4.40 $4.20 $4.00 $3.80 $3.60 $3.40 $3.20 $3.00 $2.80 $2.60 $2.40 3.99 3.99 2.99 3.21 3.11 3.89 3.99 3.99 3.99 2.49 2.59 2.50 Advertised Organic Milk Half Gallon Price Range and Weighted Average Advertised Price by 2009 2010 Reporting Week 2.79 2.79 4.49 3.35 3.35 3.32 3.32 2.89 3.89 2.49 2.50 2.50 3.98 3.89 3.89 3.99 3.99 3.35 3.33 3.06 2.99 2.69 3.09 3.62 2.99 3.69 3.59 3.49 3.99 3.99 3.69 3.22 3.38 3.07 3.02 2.99 2.842.79 2.50 2.49 2.50 2.50 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 GALLON ORGANIC MILK ADS REGIONAL % and WEIGHTED AVERAGE ADVERTISED PRICE REGION % WTD. AV. ADV. PRICE NE 72.3 5.16 MW 26.7 5.49 SE 01.0 5.16 S C 0.0 --- S W 0.0 --- NW 0.0 --- Yogurt. The Northeast lead all regions in yogurt ad placements; 69.5%. Yogurt placements in other regions as a percentage of total placements nationally include the Midwest, 19.3%; Northwest, 5.7%; Southwest, 3.7%; and Southeast, 1.9%. There were no organic yogurt ads in the South Central Region. SC 0% MW 19.3% SE 1.9% SW 3.7% ORGANIC YOGURT FEATURES Regional % of Surveyed Newspaper Ads Report Week 24, 2010 NW 5.7% NE 69.5% Weighted national average advertised organic yogurt prices in 6 ounce containers increased 4 cents to 74 cents. The bottom of the range increased 10 cents to 60 cents while the top remained unchanged at $1.00. The following table shows the percentage of national half gallon organic milk ads by region and the regional weighted average advertised price. $ per Container $1.10 Advertised 6 Oz. Organic Yogurt Price Range and Weighted Average Advertised Price by 2009-2010 Reporting Week HALF GALLON ORGANIC MILK ADS REGIONAL % and WEIGHTED AVERAGE ADVERTISED PRICE REGION % WTD. AV. ADV. PRICE NE 19.9 3.55 SE 2.6 2.99 MW 2.9 3.17 SC 13.4 2.99 SW 38.1 2.99 NW 23.1 2.99 Gallons. The national weighted average advertised price for organic milk gallons declined 18 cents to $5.07, with the bottom of the range remaining unchanged at $4.99 while the top fell 22 cents to $5.49. The following table shows the percentage of national gallon organic milk ads by region and the regional weighted average advertised price. $6.10 $5.90 $5.70 $5.50 $5.30 $5.10 $4.90 $4.70 $4.50 $4.30 $4.10 $3.90 Advertised Organic Milk Gallon Range and Weighted Average Advertised Price by 2009-2010 Reporting Week $5.99 $5.99 $5.99 $5.99 $5.99 $5.99 5.66 5.49 5.61 $5.49 5.49 5.59 5.49 $5.49 5.43 5.49 5.50 $5.49 $5.49 5.42 $5.27 $5.27 $5.27 5.27 5.25 $5.49 5.29 4.994.99 $4.99 5.07 5.04 5.07 5.03 4.99 4.99 4.99 $4.88 4.99 4.99 4.99 4.96 4.99 4.99 4.99 4.99 4.88 $4.99$4.99 4.88 4.79 4.60 3.99 4.49 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 1.00 1.00 0.99 0.50 0.85 0.81 0.75 0.60 0.50 1.00 1.00 1.00 0.75 0.60 0.63 0.91 0.74 0.75 1.00 0.69 0.590.60 0.60 0.55 0.50 0.50 0.45 0.50 0.50 1.00 1.00 1.00 1.00 0.89 0.780.79 0.74 0.75 0.83 0.79 0.76 0.76 0.70 0.74 0.65 0.59 0.50 0.50 0.60 0.62 0.50 0.50 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 The following table shows the percentage of national 6 ounce yogurt ads by region and the regional weighted average advertised price. 6 OUNCE ORGANIC YOGURT ADS REGIONAL % and WEIGHTED AVERAGE ADVERTISED PRICE REGION % WTD. AV. ADV. PRICE MW 40.7 0.94 SW 4.1 0.69 NE 55.2 0.60 SE 0.0 S C 0.0 NW 0.0 CONTINUED ON PAGE 8-B 0.60.