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34 — Farmshine, Friday, June 16, 2017 CDE DAIRY - MARKETS 13, & 2017 MANAGEMENT UPDATE TUESDAY, JUNE - All prices except where noted Analyze your business: Where will I receive the best return on invest- ment in my farm? Each business has unique strengths and weaknesses. Some farms need to increase milk production. Some need to lower feed costs. Some should focus on calves or heifers, and a few may need to work on milk quality. The Center for Dairy Excellence offers the Dairy Trend Analyzer Pro- gram, a web based tool developed as a joint initiative by the University of Pennsylvania New Bolton Center and the Center for Dairy Excellence. This tool allows producers and consultants to compare their dairy’s per- formance indicators with other dairies of various sizes at no cost. Most importantly, they can also compare their information to their own perfor- mance over the past three years, to assess where to focus management time. Data is accessed from Dairy Records Management Systems records for the Northeast. To access a sample of this program, look at http://cen- terfordairyexcellence.org/dairy-analyzer-program/ To run a report we will need your DHI farm number, RAC code and a signed release form that is all available at the website from the website. The chart illustrates this tool’s ability to integrate current or future feed cost and milk price into DHI data. If this example herd were to increase milk production by 5%, from 73.4 pounds per day to 77.1 pounds, with a feed cost of $4.53 per cow per day, and milk at $17.00, income over feed cost would grow by $178 per cow or $30,159 for the herd, yearly. The chart has similar evaluations for Pregnancy Rate, SCC, cull rate, and calving age. This herd should focus on increasing milk production and lowering calving age. For more information on the Dairy Trend Analyzer, to set up a demon- ALAN ZEPP stration meeting with your Risk Management management team, or to re- Program Manager quest a report on your farm, 717-420-7448 call me at 717-420-7448, 717- azepp@centerfor dairyexcellence.org 346-0849, or email azepp@ centerfordairyexcellence.org. Thank you to all who returned the 2017 Dairy Industry Producer Survey. The data collected from dairy farmer responses will contribute to a comprehensive dairy industry study to identify opportunities and inhibitors to growing and strengthen- ing Pennsylvania’s dairy sector. Please return the printed or the electronic version by July 1, 2017 at http://centerfordairyexcellence.org/dairy-infor- mation/dairy-industry-producer-survey/. JAN-18 FEB-18 MAR-18 APR-18 MAY-18 TREND 16.31 16.67 17.27 17.57 17.59 17.39 17.15 16.72 16.63 16.59 16.51 16.52 Mostly J 16.37 16.86 17.22 17.38 17.36 17.24 17.05 16.72 16.65 16.59 16.48 16.50 ------------------------------------------------------------------------- WEEK AGO -------------------------------------------------------------------------------------------------------- ------------------------ HIGHEST & LOWEST DAILY SETTLE PRICE OVER LIFE OF CONTRACT AND MONTH / YEAR IT OCCURRED ------------------------------------ 17.85 12/16 17.65 01/17 17.50 02/17 17.03 02/17 16.90 02/17 16.96 02/17 16.96 02/17 NC *AVG = 14.79 03/16 14.90 03/16 15.12 03/16 15.16 09/15 15.06 09/15 15.20 11/15 15.30 03/16 15.26 03/16 15.45 05/16 15.70 03/16 15.68 03/16 15.70 03/16 Average basis for MILK BASIS ($/CWT) - PA BASIS & *5-YEAR AVERAGE OF PA/NY/VT/OH - YOUR INDIVIDUAL BASIS WILL VARY North- PA 2.48 2.78 2.46 3.24 2.82 3.41 3.46 4.33 3.66 3.17 3.29 3.33 East and *AVG 2.11 2.29 2.10 2.75 2.54 3.04 2.95 3.83 3.34 2.59 2.99 2.89 Mid-East EXPECTED GROSS MARGINS* PER CWT. (at 0.00 deductible) * = using the new Farm Bill “whole-herd” MPP feed ration values calculated based on TREND * MARGIN futures prices for Class III milk, soybeans and corn projected on June 8, 9 and 10, 2017 N/A N/A 8.77 8.94 8.96 8.83 8.60 8.22 8.10 8.01 7.86 7.85 K = Milk 5-YEAR AVERAGE LGM ACTUAL GROSS MARGINS PER CWT. (at 0.00 deductible) using the new Farm Bill “whole-herd” MPP feed ration values Price for comparison based on historical futures contract close-out prices on Class III milk, soybeans and corn for these respective months. over Feed 4.94 4.15 5.26 5.62 6.52 6.85 6.85 5.99 6.65 6.33 6.06 5.72 Cost 5-YEAR AVERAGE MPP ACTUAL GROSS MARGINS PER CWT. using the new Farm Bill “whole-herd” MPP feed ration values for comparison based on USDA-announced per cwt. All-Milk price and USDA-reported corn and alfalfa hay price and Illinois-reported soybeans price. MPP Coverage can be purchased to protect margins up to $8/cwt. 8.04 5.64 5.70 6.40 7.44 8.59 9.04 8.50 8.37 8.74 8.34 CLASS III MILK ($/CWT) OPTIONS - PUTS - Daily Strike Price / Premium (per dailydairyreport.com) 6.54 J 16.25 0.01 16.75 0.25 17.50 0.38 17.75 0.51 17.75 0.65 17.50 0.65 17.25 0.70 16.75 0.72 16.75 0.72 16.75 0.75 16.75 0.75 16.75 0.79 JUL-17 TREND J SEP-17 DEC-17 MAR-18 3.40 62.20 3.70 40.60 4.70 07.10 5.00 04.00 4.20 26.10 4.60 15.20 5.00 08.70 5.30 05.70 MAR-18 MAY-18 CORN ($/BU) OPTIONS - CALLS 3.30 51.10 3.50 31.10 3.90 02.70 4.10 0.400 3.70 28.30 3.85 21.10 4.10 22.00 4.60 04.10 CORN FUTURES ($/BU) JUL-17 SEP-17 DEC-17 3.810 3.885 3.990 3.846 3.922 4.024 4.082 Example JUL-17 AUG-17 SEP-17 DEC-17 SOYMEAL ($/TON) OPTIONS - CALLS Daily Strike 305 Price / Premium 330 340 355 JUL-18 SEP-18 4.125 02.35 00.15 00.15 00.05 DEC-18 305 315 335 360 310 325 340 395 07.60 04.60 02.00 00.80 MAR-19 4.140 4.190 4.147 4.110 4.166 4.222 4.122 OCT-17 DEC-17 JAN-18 MAR-18 MAY-18 MAY-19 4.210 330 370 400 430 09.80 06.10 04.00 00.90 TREND J 10.45 04.90 03.00 01.85 JUL-19 4.245 4.285 4.210 4.246 4.282 JUL-18 AUG-18 SEP-18 4.175 TREND MIXED ------------------------------------------------------------------------ WEEK AGO --------------------------------------------------------------------------------------------------------- 4.144 4.174 SOYMEAL FUTURES ($/TON) JUL-17 AUG-17 301.5 303.4 SEP-17 305.0 305.7 306.9 307.8 309.1 310.1 311.1 312.4 311.5 311.6 311.2 308.8 313.4 310.8 TREND K ------------------------------------------------------------------------- WEEK AGO ------------------------------------------------------------------------------------------------------------------ 304.9 306.4 * = NEW IOFC = Income Over Feed Cost 307.9 309.1 310.1 APRIL FEED COST ($/CWT milk) 6.53 J 6.53 6.76 PREV MO YR AGO ALL-MILK MAILBOX * = NEW IOFC ($/COW @ 65 lbs milk) 7.42 K 7.98 6.14 PA MILK MARGIN ($/CWT milk) 11.41 K 11.90 9.44 314.0 JUN JUL AUG SEP OCT NOV ANNOUNCED FEDERAL ORDER PRICES ($/CWT) 1460 Bred 1250 Springing 1335 HEIFERS: DEC 06/13/17 CURRENT FEDERAL ORDER VALUES ($/LB) * = NEW * WEIGHTED AVG. MAY 1-31, 2017 * MAY 20 17 PRODUCT VALUE MAKE ALLOW NET COMPONENTS CHEESE 1.5390 0.2003 1.3387 J PROT 1.7723 J BUTTER 2.1644 0.1715 1.9929 J B.FAT 2.4134 J NFDM 0.8704 0.1678 0.7026 J N.FAT 0.6956 J DRYWHEY 0.5094 0.1991 0.3103 K OTHER 0.3196 K CATTLE - DAIRY PURPOSES ($/HD) NORTHEAST (Avg. most recent June 14, 2017 sale at New Holland, PA) COWS Fresh SPOT CASH TREND NFDM 0.915 0.935 0.945 0.947 0.957 0.970 0.990 K 0.9000 K WHEY 0.483 0.461 0.437 0.426 0.409 0.408 0.391 K N/A BUTTER 2.447 2.612 2.625 2.649 2.615 2.600 2.510 J 2.5800 J CHEESE 1.619 1.663 1.735 1.760 1.790 1.774 1.759 MIXED See Below CME SPOT CHEESE: BARRELS 1.4150 / 40 LB BLOCKS 1.6300 K / K $20.10 $19.62 CL I ADV CL II CL III CL IV ALL-MILK U.S ALL-MILK PA $22.80 $18.96 $19.30 $18.85 $19.40 $18.77 J 15.31 (JUN) 14.84 (MAY) 15.57 (MAY) 14.49 (MAY) 16.50 (APR) 17.60 (APR) $21.30 ------------------------------------------ MONTH AGO ---------------------------------------------- $18.45 $19.90 $18.35 $20.00 $18.24 15.20 14.81 15.22 14.01 17.30 18.80 $19.70 $18.11 $18.90 ------------------------------------------- YEAR AGO ------------------------------------------------ $18.06 N/A $17.96 13.14 13.53 12.76 13.09 15.10 16.40 $18.10 $16.42 Price averages do not include lower-end ‘common’ cows and heifers. 313.8 CME DAIRY CASH-SETTLED FUTURES ($/LB) 06/13/17 *MILK MARGIN - LATEST PSU VALUES - APR. 2017 *USDA FEBRUARY 2017* * N.ENGL * FL *WI *IL * APPAL *OH *PA *NY *U.S. *SE *MI 307.5 Bred Springing Open: 300-600 lbs 1135 1350 465 1125 1280 610 600-900 lbs 815 900-1200 lbs 910 BULLS (600-1200 lb) TREND 885 J 900 J -------------------------------------------------------------- FOUR WEEK RUNNING AV4 --------------------------------------------------------------------------------------------- 1370 1185 1320 Avg. of prices reported by USDA Market News for PA Auction Markets June 8 - 13, 2017 CULL MARKET COWS ($/CWT LIVEWEIGHT) Premium White J 74.00 J Breakers Boners Lean 75.75 J 76.60 J 71.10 Average ------------------------ WEEK AGO ------------------------- to high 78.50 75.50 75.00 69.50 dressing ------------------------ YEAR AGO -------------------------- 81.50 80.35 79.75 76.35 710 FED HOLSTEIN STEERS ( $/CWT LIVEWEIGHT) Choice & Prime 1250-1550 lbs light test BULL CALVES: No. 1 & 2, 90-130 lbs 80- 90 lbs 875 CURRENT 109.00 185.00 185.00 brought to you by: WK AGO 105.00 240.00 223.00 YR AGO 129.00 198.00 189.00 J K K Greencastle Livestock Morrison’s Cove Auction Hosking Sales 65 June 10, 2017 Alfalfa 65 Mixed hay 70-225 Grass 90-215 Straw 105-130 Livestock Auction June 13, 2017 Alfalfa 2.00-4.00 Mixed hay .50-2.75 Orchard 2.80-3.50 Timothy 1.80-1.90 Grass .80-2.50 Straw 1.00-1.85 Middleburg Auction June 12, 2017 Mixed hay 100-170 Round bales 150 Large sq. bales 140 Shippensburg Auction SEP-19 180-220 125-175 95-135 200-280 160-220 25-100 June 13, 2017 Timothy 70 Grass 35-75 Mixed hay 150-200 Straw 50-80 June 8, 2017 Kutztown Auction OCT-17 NOV-17 DEC-17 Calves: 235 Feeder calves: #1 Hol bulls #2 Hol bulls #3 Hol bulls #1 Hol heifers #2 Hol heifers Utilities Greencastle, Pa. June 12, 2017 Cattle: 304 Slaughter cattle: Steers: HiCho & Prm 137-140 Choice 136.50-138 Select 124-130 Holstein steers: HiCho & Prm 109 Choice 102-103 Select 87-89 Heifers: HiCho & Prm 135-140 Choice 129-133 Slaughter cows: PrmWht 65-75% lean 83.50-86.50 Breakers 75-80% lean 65-70 Boners 80-85% lean 63-68 Lean 85-90% lean 59-63 Slaughter bulls: YG #1 87-89 Feeder cattle: Steers: M/L-1 140 M/L-2 115-120 Holstein steers: L-3 82.50-97.50 Heifers: M/L-2 100-130 Bulls: M/L-1 130 M/L-2 103-130 Calves: 352 Feeder calves: #1 Hol bulls 180-250 #2 Hol bulls 155-215 #3 Hol bulls 80-150 #1 Hol heifers 235-240 #2 Hol heifers 60-130 Utility 20-50 Mixed breed 75-120 Timothy CME DAILY FUTURES & OPTIONS TRADING - JUNE 13, 2017 AT THE CLOSE 17.71 01/17 17.86 01/17 17.93 01/17 17.93 01/17 17.97 12/16 June 12, 2017 EASTERN PA Corn 4.35-4.58 Wheat 4.45-4.86 Barley 2.70-2.75 Soybeans 8.95-9.32 CENTRAL PA Corn 4.33-4.73 Wheat 4.45-4.69 Barley 2.75-3.00 Oats 2.43-2.75 Soybeans 8.80-9.45 WESTERN PA Corn 3.72-4.27 Wheat 3.98 Soybeans 8.75-8.86 Greencastle Auction Prices change daily. This market information is an example for educational purpos- es. The market data below are compiled weekly by Farmshine, using CME and USDA reports and the CDE Scorecard. JUN-17 JUL-17 AUG-17 SEP-17 CLA SS III MILK FUTURES ($/CWT) PA Grain & Hay June 3, 2017 Alfalfa Mixed hay Timothy Grass Straw 60-185 35-160 100 70-200 70-130 Wolgemuth Auction June 7, 2017 Alfalfa Mixed hay Timothy Grass Straw 185-190 80-195 75 70-180 90-170 Dewart Auction Dewart, Pa. June 12, 2017 Cattle: 112 Slaughter cattle: Holstein steers: HiCho & Prm 102-104 Choice 98-100 Slaughter cows: Breakers 75-80% lean 68-72 Boners 80-85% lean 64-70 Lean 85-90% lean 62-67 Slaughter bulls: YG #1 86 Feeder Cattle: Steers: M/L-1 130 Holstein steers: L-3 73-75 Heifers: M/L-1 120 M/L-2 92.50-97.50 Bulls: M/L-2 107.50 New Berlin, N.Y. June 12, 2017 Cattle: Dairy cows .60 Bone utility .47-.75 Canners & cutters .40-.47 Easy cows .20 & Down Bulls: Bulls & Steers .85-1.09 Bull calves: 96-120 lbs .70-2.05 Up to 95 lbs .10-.70 top 2.45 Heifer calves: Livestock Auction Hackettstown, N.J. June 13, 2017 Calves .40-1.85 Cows .51-.88 Fat steers 1.16-1.24 Feeder steers 1.27-1.35 Feeder heifers .92-1.35 Bulls .80-.98 Fat heifers .68-1.32 Middleburg Auction Middleburg, Pa. June 13, 2017 Cattle: 243 Slaughter cattle: Steers: HiCho & Prm 132-136.50 Choice 125-132 Select 120 Holstein steers: HiCho & Prm 103-110.50 Choice 95-102 Select 94 Heifers: HiCho & Prm 131-133.50 Choice 128.50-129 122-124 Select Slaughter cows: Breakers 75-80% lean 73.50-75.50 Boners 80-85% lean 68-74.50 Lean 85-90% lean