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Weekly protein digest:fluid milk supplies falter and beef exports are down

28 August 2020
Jim Wyckoff Commentary -  TheCropSite

Read the latest US dairy industry and beef export updates from Jim Wyckoff.

USDA national weekly milk report: fluid supplies tightening

USDA this week reported eastern fluid milk supplies are tight in some areas for some operations. Milk output has bottomed out in Florida, where hot weather has taken a toll on cow comfort. Bottlers are receiving most loads in parts of the East. In the Central region, milk production has increased in the northern area of the region, compared to slight decreases in the south.

Class I demand slightly picked up as some schools order supplies. Milk production in California, and the mountain states of Idaho, Utah, and Colorado is strong. Milk intakes are in good balance with processing needs. Class I demands are steady. Milk in New Mexico and Arizona is in good equilibrium with current needs.

Condensed skim markets are fairly stable. Some customers are requesting additional spot loads. Cream supplies are slightly increasing. Some manufacturers have started to churn butter instead of selling cream. Ice cream makers are decreasing their cream intakes. Cream multiples for all Classes range 1.33 - 1.43 in the East; 1.30 - 1.46 in the Midwest; and 1.05 - 1.25 for the West.

Dry products

Low/medium heat nonfat dry milk (NDM) prices are steady to higher. Buyers’ demands are mixed. Exports to Mexico are fair/good. Some market participants question the bullishness of the current market. High heat NDM prices are steady to higher on slow spot trading activity. Dry buttermilk prices are mostly unchanged. Spot trading activity is slow. Market activity is expected to improve ahead of the upcoming fall baking season. Dry whole milk prices are lower on the top of the price range. Buyers’ interests are fairly light. The market tone is unsettled.

Market participants expect dry whole milk demands to improve in the near future. Whey powder prices are mixed throughout the regions. Market activity picked up in some areas this week. In addition, several loads continue to clear through contracts. Whey protein concentrate 34 percent prices are steady to lower. The market tone is steady with prices under pressure from other dairy proteins. Lactose prices are steady to slightly lower. Weekly contacts are stable, however spot market demands are softer. The market tone for lactose is unsettled, and there are a lot of mixed messages in the market. Acid and rennet casein prices are unchanged. Outside of committed contracts, trading activities are slower.

The week's net beef sales

US beef net sales of 11,800 MT reported for 2020 were down 40 percent from the previous week and 36 percent from the prior 4-week average. Increases primarily for China (3,300 MT), Hong Kong (3,200 MT, including decreases of 300 MT), South Korea (1,500 MT, including decreases of 2,200 MT), Japan (1,100 MT, including decreases of 1,800 MT), and Mexico (800 MT), were offset by reductions primarily for Indonesia (300 MT) and Chile (100 MT). Exports of 18,200 MT were down 1 percent from the previous week, but up 2 percent from the prior 4-week average. The destinations were primarily to South Korea (6,000 MT), Japan (4,900 MT), Taiwan (1,400 MT), Mexico (1,100 MT), and Canada (1,100 MT).

TheCattleSite News Desk

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