AS of today, October 6, 2009 we have seen another uptick in the near term dairy futures market. Today October 2009 up $.04 to $12.84, November up $.27 to $14.27 and December up $.23 to $14.72. What price can a dairy producer expect based on these futures prices?
As any good extension educator will tell you, "It Depends" It does really depend on the individual basis that each farm has. If your basis (simple definition is the difference between the futures price and the mailbox price received) is $2.00 then you can plan $2.00 over the class III price. Same if your particular basis is $3.00. I would use at least three years worth of milk prices to begin to get an accurate picture of the farm's basis.
Tuesday, October 6, 2009
Friday, October 2, 2009
Dairy Update October 2, 2009
Lots of things happening right now in the dairy industry. Yesterday we heard that $350 million would be available to the dairy industry, $290 million of that going to direct payments through the US Secretary of Ag. Today there apparently is some hold up as to how payments would be distributed with California legislator Barbara Boxer arguing that payment should not be based on the MILC limits of 2.985 million pounds of milk production. Senator Casey and Senator Shumer would like to see payments with the same limits as MILC.
We will see where the arguments falls out.
Class III futures increased substantially today with October '09 up $.07 to $12.79, November class III up $.21 to $13.96, and December '09 up $.27 to $14.45.
Some of you may have seen on the news that a dairy producer in Pennsylvania is seeing the media clout of PETA with a video of the farm being widely distributed. Folks, lets not forget the importance of animal well being. Animal rights people seem to be now focusing on our dairy industry. let's make sure we don't give these folks anything to talk about in the media.
Good news to report. Total number of dairy farms taking advantage of dairy advisory teams in the three county area of Bradford, Susquehanna, and Tioga, is currently at 29. Wow, very impressive.
Finally, a 3rd round of herd retirements through CWT was announced yesterday. Dairy producers have until October 15th to have bids postmarked. A cap of $5.25 on bids will be applied again in this round of retirements. For more info, here is the website address, www.cwt.coop.
We will see where the arguments falls out.
Class III futures increased substantially today with October '09 up $.07 to $12.79, November class III up $.21 to $13.96, and December '09 up $.27 to $14.45.
Some of you may have seen on the news that a dairy producer in Pennsylvania is seeing the media clout of PETA with a video of the farm being widely distributed. Folks, lets not forget the importance of animal well being. Animal rights people seem to be now focusing on our dairy industry. let's make sure we don't give these folks anything to talk about in the media.
Good news to report. Total number of dairy farms taking advantage of dairy advisory teams in the three county area of Bradford, Susquehanna, and Tioga, is currently at 29. Wow, very impressive.
Finally, a 3rd round of herd retirements through CWT was announced yesterday. Dairy producers have until October 15th to have bids postmarked. A cap of $5.25 on bids will be applied again in this round of retirements. For more info, here is the website address, www.cwt.coop.
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