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jrsiajdranch
Veteran Advisor

From the parlor pit 6-15

Well it's been an interesting morning. First off it's my oldest sons 16th birthday.  We went to the coourthouse and got his license funny how thru it all family is the most important thing. The struggles of farming and life all melt away with a sense of accomplishment to see your kids grow up.

 

Enough of the sappy stuff.

 

Here is the report for today Fonterra auction.

 

 Price Changes from Previous Event
Changes in Price IndicesContract 1
(Aug11)
Contract 2
(Sep11-Nov11)
Contract 3
(Dec11-Feb12)
All Contracts
Anhydrous Milk Fat (AMF)-6.9%-5.4%-5.9%-5.9%
Butter Milk Powder (BMP)n.a.n.a.n.a.n.a.
Milk Protein Concentrate (MPC70)0.2%-0.9%n.a.-0.3%
Rennet Casein (RenCas)-3.7%-0.8%n.a.-2.4%
Skim Milk Powder (SMP)-4.2%-9.1%-7.5%-7.1%
Whole Milk Powder (WMP)2.6%1.8%3.9%2.6%
All Products (Trade-Weighted)-1.5%-3.8%-1.9%-2.6%

 

 

 

There's lots more to say but it's been a long day already and I think this info will spur more discussion later.  I'll check back in. Oh BTW heard from a broker today that several large dairies are hurting for credit to buy feed. Many credit lines are exhausted. ANd that could lead to a very long summer.  With the NZ dollar at all times hig we are still very competitve with our currnet price for cheese. Also that hillmar cheese plant is still haveing problems sourcing cheese to fill back orders they had to cancel with their production problems. BTW how do you get so much plastic into the cheese to spoil around 20 million pounds of the stuff! Also lots of ponds around here this morning. hopefully those will dry up soon. We were going to start sidedressing NH3 tomorrow but not now. gonna have to put the duals back on the tractor.  BE SAFE!

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1 Reply
semndairyguy
Veteran Contributor

Re: From the parlor pit 6-15

Morning JR!!! Looked at that last night and needed some time to think about this. Two things could be happening, we could be seeing the start of the slide OR this auction re-enforces the fact that US powder is cheaper than NZ powder due to the dollar. I think it has more to do with the NZ dollar being strong, making the NZ powder more expensive than US powder.

 

More thoughts later, but I need to go feed cows. Just didn't want you to thnk I forgot about you.

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