Skimmed Milk Powder Production Falls04 May 2012
US - Skim milk powder (SMP) production during March 2012 totaled 11.9 million lbs., the lowest monthly production level since October 2009, according to USDA’s Dairy Products report released yesterday. Growing milk production, rising stocks and greater export competition are resulting in more non-fat dry milk (NDM) production and less SMP production, writes Mary Ledman, Sara Dorland, Sarina Sharp and Karen Endres.
The same report showed manufacturers’ stocks of NDM on Mar. 31 totaled 210.3
million lbs., which is the highest stock level
since May 2000. This is only the 7th month
since 2000 that manufacturers’ stocks have
topped 200 million lbs.
Dry product prices as reported by Dairy Market News were mostly steady or lower for the week ending May 4. The Central dry whey mostly range is 47.5¢ to 53.5¢, down 0.75¢ on the low end and 3.0¢ lower on the high end. The West dry whey mostly range is 46.0¢ to 53.25¢, unchanged vs. last week. The Central and West regions are reporting NDM price lows of $1.10/lb. and $1.05/lb., respectively, also unchanged vs. the prior week.
The Central/East NDM mostly range is $1.12/lb. to $1.27/lb., down 3.0¢ on the high end. The West NDM mostly range is $1.10/lb. to $1.21/lb., down 2.0¢ on the low end and 3.0¢ less on the high end. The WPC mostly price posted the largest decrease, down 11¢ on the low end to $1.25/lb. The high end was unchanged at $1.4325. Declining NDM prices are forcing WPC 34 prices lower because they are interchangeable in some product formulations.
The CME spot Cheddar barrel cheese market gave up most of yesterday’s 3.0¢ gain. The market closed at $1.47/lb., down 2.5¢. The lower barrel price, lack of trading in blocks and butter, and the bearish dairy products production report all contributed to lower dairy product futures prices.
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