August 21, 2013 — The Agriculture Department announced the September Federal order Class I base milk price this afternoon at $19.16 per hundredweight, up 28 cents from August, $1.57 above September 2012, and equates to about $1.65 per gallon. That pulls the 2013 Class I average to $18.48, up from $16.50 at this time a year ago, and compares to $19.23 in 2011 and $14.83 in 2010. The Class I mover is the price federal orders add their Class I differential to, to determine the local Class I milk price used in the blend or uniform price for each order.
Prices for most products in yesterday’s Global Dairy Trade (GDT) auction rose, some up sharply, according to FC Stone’s eDairy Insider Closing Bell (ICB). The trade weighted average for all prices advanced 2.3 percent, led by a 7.1 percent increase in anhydrous milkfat to $2.2367 per pound.
That was followed by a 3.3 percent increase in butter, to $1.6393 per pound, or $1.5993 adjusted for 80 percent fat. A 2.7 percent increase occurred in whole milk powder, to $2.3242 per pound; a 1.9 percent gain in rennet casein, to $4.5745 per pound; a 1.5 percent advance in milk protein concentrate 70, to $3.5507 per pound; and a 0.9 percent rise in cheddar cheese to $1.9845 per pound. The winning price for all skim milk powder contracts fell 0.7 percent, to $2.0076 per pound, and butter milk powder dropped 3.1 percent, to $2.1269 per pound. Lactose did not trade, according to the ICB.
The July Cold Storage report and Livestock Slaughter reports are issued tomorrow. Next week’s reports are pretty sparse. The August Ag Prices report is issued by USDA on Friday August 30th and includes the latest milk feed price ratio.
Lee Mielke, associate editor