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On Cows and Markets

By  E. W. Lang

Block cheddar cheese ended the week at $1.94 per lb., up 16 cents from Friday, last. Barrel cheddar ended at $1.89 up 17 for the week. Butter lost five cents in five trading days to end the week at $1.64 per lb.

Last week I expressed concern that the higher cheese prices were an aberration, with food service starting up and stocking up, and lower prices ahead. This week that seems to be a general concern in the industry framed as, "When shall a cheese price correction present itself?"

May Class III Milk lost six cents per cwt. to end at $12.18, while June gained 18 cents to close out the week's trade at $17.03 per cwt. July through December Class III Milk futures average $16.13 which is down 40 cents for the week.

Spot price on orphan loads of milk are running even with Class to $2 over. For reference, one year ago spot milk was $2 per cwt. under class to 50 cents over. Five years ago, spot milk was $10 under, just so you know.

We could be looking at $10 under Class today, were the coops not operating in concert to force producers to limit or reduce production, after dumping 1+% of the nation's milk in April. One would think that limited production should be a lasting ordinance from the coops, where everyone only gets to produce the amount needed to keep milk over $25 or $30 per cwt., or whatever some committee decides the fair price is.

Enter the independent producer who milks thousands of cows because technology allows it. He or she can say to the end users of milk, "Whatever the Farmer's Coop wants as a fair price, just let me know. I'll supply most of your needs for two bits less." Advantage, Independent Producer. Too bad, Coop Members who are relegated to supplying milk only as needed. And yes, I do mean only.

Minnesota cancelled their State Fair, joining Ohio and North Dakota.

 

Minnesota cancelling a perfectly good event is really not a surprise, disapointment though it may be. The culture in the Twin Cities is somewhat artistically intellectual. It's socially responsible to celebrate well composed music, cultural diversity and climate warming, etc. These are the kind of people who wear masks while listening to Prairie Home Companion reruns, just in case Garrison sneezes into the microphone. It's a less than science-based culture where social appearance and actions matter, and Mr. Keillor always dressed like he didn't feel well.

Now, for those of you needing something to look forward to, the National Dairy Cattle Congress is in September here in Iowa, so far as we now know. And the Iowa State Fair is still on. There will also be some pick-up shows around the country.

As this will be posted on Memorial Day, I would be remiss to not offer a few words regarding the holiday, a holiday specific to those who died while in the armed service of the United States, particularly those killed in battle.

We had a U.S. Armed Forces Day earlier this month to honor the men and women who are currently in service. On Veterans' Day in November we annually have the chance to honor the men and women who have served in the armed forces - served then returned home alive.

The three holidays are not the same.

Today it seems shallow for us to use a three day weekend to fellowship and recreate among the living, when the parents of soldiers who didn't return from service will seldom or never again be content or actively happy. Much is the same for the grand parents, children, husbands and wives of those who answered the call to service - voluntarily or by draft - and never returned.

I could render the commonly used theme of "Freedom Isn't Free," but the fact is that for most of us, freedom hasn't cost very much. For the dead service men and women, and those left to mourn their loss, the cost of our freedom is greater than we know.

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