Then on "Dairyline"
http://dairyline.com/news-main.htm#Butter Dropped From CWT Program
Butter Dropped From CWT Program
(September 2, 2010) The CWT program, in view of current prices, announced its last export assistance bids on butter on August 30, totaling 291,000 pounds. The program drew criticism that it even included butter but CWT chief operating officer Jim Tillison said in Thursday’s broadcast that the decision to include butter was made in July when butter was running around $1.79 and CWT members were reporting being undercut by foreign competition so the decision was made to assist those who had existing business.
July milk prices were still not at a level dairy producers wanted them to be yet, Tillison argued, and “The real run up in the butter price happened in just a matter of days.” Butter was at $1.95 and in four trading sessions it hit $2.15.
“Butter was very tight in this country,” he said, “And we didn’t want to do anything that would potentially push the price higher.” He mentioned other factors affecting the price such as the hot weather which impacts the milk supply and yields. The remaining CWT export funds will be directed to exporting cheese, he said.
Herd audits for CWT’s latest herd removal program have been completed though information is still being collected and analyzed. Tillison reported that about 31,000 cows will be removed, representing 600 million pounds of milk, but final numbers won’t be available until all information has been collected from the producers who participated.
U.S. milk prices are higher but so are feed costs and that could mean that MILC payments will resume next spring. To maximize those payments, dairy farmers they may need to change their payment ‘start’ dates. Dairy Profit Weekly’s, Dave Natzke, has details on tomorrow's DairyLine and Dr. Paul Chandler, has his weekly “Nutrition Update” in our second half.
Store brand butter price is up.