The parlor pit 3-22
Gettin some rain again in NCIA this morning.
Dairy markets are all over the place. We seemed to have hit our lows in the first wek of march and since then we have rallied 2 dollars. This weeks global dairy trade auction was very bearish and our feb. milk production number was HUGE! UP 4.8 % year over year. Even tho we had very good cull cow prices. This winter has been very favorable to milk production. The interesting thing will be if the heat of last summer will soon start to show the affects of a long lactation as cows stayed open much longer.
Inspite of the bearish tone of the world markets and the bearish tone set forward by increased production we can see that our endusers are purchasing enough to keep up with supplies and for the most part we are at a good balance.
March may very well be the low water mark for our price for the year.
Early on april futures dived down to 14.20. Yesterday we closed at 16.26.
This isn't a good time to think that all will be rosey going forward. Antecdotal evidence shows that there is still a lot of stress out there. and with the price of corn where it is many will throw in the towel this spring and just row crop. The average age of the dairy man is over 57 and many are just tired.
Feed costs are stilll biteing many very hard. Fortunately the mild winter has held hay prices in check and many are seeing that first cutting may be early enough to limit demand. (sucks if youa re a hay grower tho!)
Finally the world of DDG's is changing.