Exports/Imports Negate Gains in Domestic Dairy Sales

December 19, 2014 11:31 AM
 
Exports/Imports Negate Gains in Domestic Dairy Sales

The good news: Domestic dairy consumption was actually up in the third quarter of 2014. The bad news: Dairy exports were down and imports were up, offsetting those gains.

So reports the National Milk Producers Federation in its December Dairy Market Report, released today.

Compared to last year, domestic commercial disappearance of dairy products increased 3% on a milkfat basis, 5.7% on a skim solids basis, and 4.5% overall. But lagging exports were equivalent to 2.5% of domestic milk solids production. And higher prices versus world prices saw dairy imports increase another 0.5%.

Corn prices have also strengthened recently, mostly because users have had to bid grain out of storage because of low elevator prices. Soybean prices have also rebounded of late, though hay prices have dipped.

The net effect of lower milk prices and stronger feed prices has been a $1.81/cwt reduction in the October milk/feed margin compared to September. But the margin is still $2.78 higher than a year ago. 

Back to news


 

Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close