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Veteran Advisor

From the parlor pit 2-4

THe frozen tundra is less frozen this morning. YEA!  Yesterday was very cold -13 on the temp gauge above the parlor doors.  I fed cows yesterday two blocks of ice with some hay in it and a bunch of frozen High Moisture Shelled corn. At least that was how it seemed to come out of the silo's.  I did take some pics of the whole deal Cause I knew that I could show up marketeye's snowed in city streets. But fumble fingers me hit the wrong button on the camera and deleted them!

I 'll bet I get in hot water with JC for that. Hope his punishment isn't to severe!Smiley Surprised

Later today I will try agains for a pic of the biggest snow drift I have ever seen and I will post it this weekend. Our milk truck got stuck before he got to our place also so did the feed truck one salesman and the ups guy. I couldn't even drive into the drive with my big F350 cause the drift at the mouth of the drive was as tall as my truck! The snow blower had some snow in from the last use and it froze into the paddles so it took a couple of hours to get that going also! 

On to the dairy markets.

Wow what an exciting time!  This week I saw a headline that really peeked my interest so I read further. Here it is.

10:22 UK, 3rd February 2011, by
Dairy leads 'surge' in food prices to record high

Food prices have hit a record high, and may yet gain further still, despite a dampener on meat values caused by the German feed contamination scandal, the United Nations' food agency said,

Global food prices "surged to a new historic peak" in January, rising by 3.4% from December to an index level of 231 points, the UN's Food and Agriculture Organisation said.

And the increase, the seventh successive month-on-month rise, may not be the last, given that the "upward pressure on world food prices is not abating", Abdolreza Abbassian, FAO economist and grains expert, said.

"These high prices are likely to persist in the months to come," he said.

Dairy jump

January's increase was led by dairy products, for which prices jumped by 6.2% underpinned by "firm global demand, against the backdrop of a normal seasonal decline of production in the southern hemisphere".

New Zealand, the world's top dairy exporter, is in the down phase of its milk output cycle, as pasture quality deteriorates heading towards winter, when animals are put on substitute rations.

Prices of sugar and of oils and fats rose more than 5%, reflecting "tight" stocks, with inflation in cereals pegged at 3%, restrained by a fall in rice prices as harvest periods in many major producing countries gave a fillip to supplies.

Dioxin scandal

Meat proved a, relatively, economical choice, with prices steady overall during the month, after the discovery of the toxic chemical dioxin in German animal feed.

FAO food price indices for January, and month-on-month rise

Dairy: 221 points, +6.2%

Oils/fats: 278 points, +5.6%

Sugar: 420 points, +5.4%

Cereals: 245 points, +3%

Meat: 166 points, unchanged

Overall index: 231 points, +3.4% 

The FAO flagged "declining meat prices in Europe, caused by a fall in consumer confidence following a feed contamination scandal", which balanced out rises in values of exports from Brazil and the US.

Germany piglet prices fell by 20-30% following the scandal, and those of pigs by 40%, in the two weeks following the dioxin finding, according to DBV, the German farmers' association.

Russia, one of the world's main meat importers, banned purchases of both German pork and poultry meat following the scandal.





ALso to underscore that article here is the info from the fonterra auction earlier this week.

Trading Event 37 was held on Tuesday 1 February 2011

Summary of Results

Number of Qualified Bidders313
Number of Participating Bidders112
Number of Winning Bidders51
Number of bidding rounds10
Duration of trading event (hours:mins)2:01
Average winning price (USD/MT, FAS)$4,246
Change in gDT-TWI™ price from previous Event7.2%


Price Changes from Previous Event

Changes in price indicesContract 1
Contract 2
Contract 3
All Contracts
Anhydrous Milk Fat (AMF)7.4%11.5%8.1%9.2%
Butter Milk Powder (BMP)n.a.n.a.n.a.n.a.
Skim Milk Powder (SMP)5.0%11.8%11.7%8.5%
Whole Milk Powder (WMP)7.6%5.5%0.5%5.7%
All products (trade-weighted)6.4%8.6%5.8%7.2%





With todays announcement of the Jan. class prices by nass it will be interesting to see how much they really jump as compared to the cash prices we see every day on the cme right now.  I will post them later they do come out this morning.  Be safe JR


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3 Replies
Esteemed Advisor

Re: From the parlor pit 2-4

It is interesting to find out that 20 above can get to feel balmy---did you see Dallas -Fort Worth weather this AM ? Would be tough for those guys not acclimated for chores in this weather--stay warm ! !

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Re: From the parlor pit 2-4

JR: I'd vote to give you quote o' the week:  "I fed cows yesterday two blocks of ice with some hay in it and a bunch of frozen High Moisture Shelled corn. At least that was how it seemed to come out of the silos."


Hope the cows got some more hay in their ice today. Good luck with things....



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Re: From the parlor pit 2-4

   Took me 2 hrs. to dig a path with the skid loader to the outside hay feeders.  The netwrap is frozen on so bad trying to remove it is fruitless.  So I slice it with a utility knife and spear it off with the bobcat and leave it lay on the ground and put the rest, 80%? of the bale in the feeders.  They eat a lot of it off the netwrap on the ground.  This year is about the worst I've seen it with the net wrap problems being frozen on the bales so bad.  Ya I know the bales should be under cover but the last time I tried that the coons got in them so bad it took us weeks to shoot them all.

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