By E. W. Lang
USDA offered two separate Section 32 cheese
solicitations this week totalling 8.8 million pounds of potential cheese
purchases for delivery between November 19 and February 20. Wendy's, our delicious hamburger friends,
announced they will start serving delicious breakfast next year, possibly
gobbling up another 10 million pounds of delicious cheddar cheese. And rumors surfaced that a western cheese
producer ran into some production problems.
Markets, in turn, responded with block and barrel
cheese gaining 21 and 18 cents in the cash markets over the last five trading
days. Class III milk gained $1.48 per
cwt. in October and 99 cents in November, with October ending at $19.20 and
November at $18.35 per cwt.
It seems that no one saw any of that coming.
Cheese use has been further enhanced on the
periphery by school and colleges firing up and higher demand from folk make and
sell pizzas. Or pizzae, if you
prefer.
Nearby milk prices are reminiscent of 2014.
Market fundamentals, less so.
Spot loads of Class III have been running 50
cents under to $1.75 over Class, similar in range to each of the last two years
during September. Processing plants in
AZ, CO, and ID are running at full capacity, and discounts on homeless Class IV
tankers of milk out there are reported by USDA's Dairy Market News at $4.75
under Class before they can find a willing buyer.
Corn and
Soy prices gained a fair amount this past week, but Milk-Feed Indices still
average near $11 per cwt. for the rest of this year. Producer calls to dairy cattle dealers
wanting close and fresh cows are frequent.
Also frequent are producer calls to dealers and auctioneers wishing to
liquidate, if they can do so at a manageable equity level with their lender. Any time in the next six months now seems to
be the time frame for those wishing to get out of milking.
China will cancel their retaliatory tariff on
food-grade whey permeate from the United States. Fluid milk sales ticked up a little in
July. Dean Foods said they are not for
sale and their stock price gained 60 percent over two days. Then it lost half of that the next day, now
trading at $1.59 per share, down from $7.50 one year ago.
Equities on Wall Street gained ground this week,
closing in on record highs. Steers were
up $3.20 per cwt. Weaner pigs gained
over $4 per head, and average $26.41.
Weiner dogs are steady at $100 to $500 per head, depending on color,
pedigree, disposition and longness.
Always remember... if you don't like Weiner dogs,
there must be something wrong with you.
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The author identifies as a farmer near Brooklyn,
Iowa