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USDA - AMS: Organic Dairy Fluid Overview (2019-05-03)

USDA U.S. Department of Agriculture - May 3, 2019


     Organic Dairy Fluid Overview

     Report 18 - Released on May 3, 2019


     New England Organic Milk Sales and Sourcing. Federal Milk Market Order 1 in New England
     reports utilization of organic fluid milk by pool plants. During March 2019, organic whole
     milk utilization totaled 13.5 million pounds, down from 16.7 million pounds one year
     earlier. The March 2019 butterfat content, 3.28 percent, was unchanged from the previous
     year. The utilization of organic reduced fat milk in March, approximately 16.0 million
     pounds, was down from 20.3 million pounds one year earlier. The butterfat content was 1.34
     percent, up from 1.33 percent the previous year.

     Organic Cow Auction Prices. An April 29, 2019 report from a livestock auction yard in the
     Northwest noted that organic cows, sold for slaughter, traded marginally higher than
     conventional cows. The average price for top 10 organic cows auctioned was $0.7128 per
     pound, compared to the average top 10 conventional cow price, $0.6326 per pound.

     Dairy Margin Coverage New Decision Tool. On April 30, 2019, the USDA announced the launching
     of the Dairy Margin Coverage (DMC) program's, new decision support tool. The tool helps
     producers determine the level of coverage needed to reduce net income risk due to volatility
     in milk and feed prices. Also, the tool estimate payments during the coverage year. The
     2018 Farm Bill sanctioned the Dairy Market Coverage program.


     Organic Grain and Feed Market. Feed grade organic corn markets are active on moderate
     demand. Sources indicate that exchanges are close to 13 cents higher than the previous week.
     Meanwhile, forward contract activity is good on old crop feed grade corn, with light
     activity on new crop contracts. New crop bids for feed grade corn are as low as 8.50
     delivered, but some producers are hesitant to contract. Feed grade soybeans market are
     sluggish due to a lack of comparable trades. Prices are mostly firm for feed grade soybeans
     and unchanged on food grade. Feed and food grade wheat are seeing limited activity.
     Following, rain and snowfall delays, farmers are returning to the fields to resume planting.
     However, with temperatures cooler than normal in certain areas of the country, farmers are
     depending on sunshine and wind to dry fields so they can plant new crop.

     Crop Progress Delayed Across the US. Producers of feed crops in multiple states are
     encountering adverse weather conditions that challenge planting activity. In a number of
     areas, higher than average rainfall has dumped more precipitation than initially projected,
     along with some unexpected snowfall. Consequently, excess soil moisture delays field work.
     Corn planting is behind in the 18 states responsible for 92 percent of US corn acreage. On
     average, 27 percent of the corn crop would have been planted, but only about 15 percent has
     been planted thus far. In the six states responsible for the majority of spring wheat crop,
     all are lagging behind in planting pace. The average for this point in time, is 33 percent,
     while only 13 percent has been planted. Barley planting typically is 41 percent at this
     time, but presently  28 percent is in the ground.

     Information for the period April 22 -  May 3, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     DANIEL JOHNSON, 608-422-8605

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website:
     DMN MARS (My Market News):

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