Friday, August 27, 2010

Now the News

Trading at the CME has quite a few players, comparatively. Of course, there is still a difference between the CME and a real market. Still, you can't help but wonder if milk is tight.

Dairy Market News latest:

Northeast/Southeast -
"Manufacturing milk supplies continue to tighten in the East due to increased Class I demand as more schools are opening or preparing to open soon. Seasonal declines in milk production are continuing in the Northeast with steeper declines noted in the Mid Atlantic and Southeast regions which have been affected by significant spells of heat and humidity. Schools have been back in session in the Southeast for over a week and trucking issues have lessened. Temperature issues however, remain and are causing some loads to be rejected. Class I pulls have increased in Florida as most schools are opening this week. Cream supplies remain very tight as milk production declines and components remain low. Demand for cream is very strong with cream cheese, ice
cream and butter makers vying for available supplies."

Central -
"Milk supplies are very tight and even bottlers are occasionally getting deliveries when they are available and not on their preferred schedules. For bottlers, it is not just calling up to get extra
volumes just when desired with just a phone call or two, as manufacturers are reluctant to let go of their supply. Finding a truck/trucker available is also a problem with spot loads. Class I demand was stronger again this week between retail feature activity in selected markets and increased volumes needed to fill the school milk pipeline."


"The possibility of getting extra manufacturing milk supplies in the upper Midwest is extremely unlikely, so there are not enough prices received to generate a spot price report. The current demand far exceeds the few if any loads offered."


  1. When milk travels 15+ hours from IN to FL on hot days, no wonder milk temperatures are 42 and loads are getting rejected.

    Since milk is tight, why are prices not reflecting this?

  2. Because we can sell just a little less and make more with cheap milk than if we sell more and make less with expensive milk. Besides pretty soon we can use the "milk shortage" to increase the prices on our finished goods to the consumer, but we still probably won't pay much more for the milk. Sorry guys, it's nothing personal, just business.

  3. Sorry, but as I'm looking at my increase in debt from the last two years as well as I reflect on the things I have done without for the past two years to survive, it can't get any more personal. Your "business" stinks as well as our so called leaders who refuse to do anything to stop your plundering.

  4. It's personal when we(farmer) own (you)the coop and the profit is not returned to us.

  5. Put it right up there with the NMPF giving DFA an extra $1.40 a pound for the export cheese that was made from our $13.00 milk. Do the farmers share in that windfall?

  6. The "windfall" is helping fund Hanman's retirement account.