Spot Prices of Class II Cream and Butterfat

Cattle 6

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT
F.O.B. producing plants:   Upper Midwest -   $2.4028-2.5745

The snow is mostly melted in the Upper Midwest after several areas
experienced near or all-time record snowfall and duration of snow cover.
The temperatures in the Midwest are averaging about 5 degrees below
normal.  The Southern Plains are facing unfavorable dry, windy conditions
as a series of dust storms with winds reaching over 50 mph.  Milk
production in the Central region is mostly steady with a few producers
noting an uptick in the milk tank.  Producers in Texas note the wheat crop
is coming along well.  Texas corn planters are facing mixed field
conditions and for the most part are behind in planting.  Milk spot load
availability is mixed with prices ranging from marginally under Class to
as high as $2.50 over Class.  Current high milk prices have some milk
processors concerned about losing value by storing powders and/or cheese,
therefore a few are electing to sell spot loads of milk.  Bottling demand
is softening as few retail promotions are going on and orders are down.
Condensed skim is readily available and moving at generally discounted
rates.  Various Class II products such as whipping cream, soft serve, and
cultured products are seeing increases in demand.  Ice cream makers are
busy building inventories for upcoming seasonal demand.  Many Class II and
Class IV manufacturers are taking extra cream supplies.  Class II cream
multiples moved slightly higher, ranging from 1.26 to 1.35.  Some cheese
makers are taking extra spot loads of milk if cheese sales warrant the
additional production.  Grade AA butter at the CME Group closed 2 cents
higher Wednesday to $1.9700, up 6.5 cents from a week ago.  South Dakota
granted permits for additional 24,000 head of dairy cattle on various
farms along mostly the state’s eastern border.  The NASS Livestock
Slaughter reports February 2014 dairy cow slaughter at 237,000 head, 12.2%
or 33,000 head less than a month ago and down 8.5% or 22,000 head compared
to February 2013.  January-February cumulative dairy cow slaughter totals
507,000 head, a 8.8% or 49,000 head decrease from a year ago.  The weekly
Cow Slaughter under Federal Inspection Report shows U.S. dairy cow
slaughter for the week ending on March 8, 2014 at 59,600 head, 6,700 head
or 10.1% less than the comparable week a year ago.

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