April 23, 2012

USDA released the March Milk Production report, revealing 50-state milk production at 17.7 billion pounds, up 1.9%, on a daily average basis against the prior month and 4.2% greater than last year.

Higher milk production against the prior year is driven by a 3.2% gain in milk per cow and a nearly 1.0% increase in the dairy herd. The US dairy herd expanded by 12,000 head in March to 9.266 million, the largest since May 2009. States posting the highest over-year gains in milk production are: Utah 7.8%, Michigan 7.3%, Colorado 7.1%, Arizona 6.6% and California 6.2%.

Dry whey, NDM and WPC prices reported by Dairy Market News today continue to decrease vs. the prior week. The Central dry whey mostly range is 48.5¢ to 58.0¢, down 1.5¢ on the low end and 2.0¢ lower on the high end. The West dry whey mostly range is 46.0¢ to 54.5¢, down 2.0¢ on the low end and 0.75¢ less on the high side. The Central and West regions are reporting NDM price lows of US$1.085 per pound and US$1.10 per pound, respectively. The Central/East NDM mostly range is US$1.15 per pound to US$1.31 per pound, down 2.0¢ on the low side and a penny less on the high end.

The West NDM mostly range is US$1.15 per pound to US$1.26 per pound, down 2.0¢ on the low end and 4.0¢ lower on the high end. The WPC range is US$1.36 per pound to US$1.465 per pound, unchanged on the low end but down 2.5¢ on the high end. Lactose prices were unchanged at 89.0¢ to 94.0¢.

The CME Cheddar block price closed a penny higher at US$1.51 per pound on a single bid today while the barrel price settled unchanged at US$1.46 per pound. with a single offer and bid left on the board. The CME spot butter price closed unchanged at US$1.4125 per pound after a trade and the NDM Extra Grade price settled 2.0¢ lower at US$1.1375 per pound on an offer.