Friday, January 6, 2006 - Daily Update
 

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TODAY'S ARTICLES
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1.  Japanese Artificially Induce Mad Cow Disease
2.  Hearing Amending Class III, IV Milk Price Formula
3.  Dreyer’s Shifts Production to Bakersfield Plant
4.  Dairy Products: Butter Production Rises
5.  Dairy Products Prices Highlights
6.  National Dairy Market at a Glance
7.  Weekly National Grain Market Review
8.  National Carlot Meat Trade Review
9.  Paratuberculosis in Norwegian Reds
10.  Winter can Create Manure Management Issues
 

TODAY'S ARTICLES

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1. Japanese Artificially Induce Mad Cow Disease   back to top


Japanese scientists believe they have artificially induced mad cow disease in Holstein calves. The discovery is similar to those made by British researchers.

The Hokkaido Animal Research Center in Japan took prions from infected cows and injected them into the brains of 14 Holstein calves about a year ago.

Source: The Age/ AAP, Jan. 6, 2006
Source URL: http://www.theage.com.au/news/World/Japanese-claim-madcow-experiment-success/2006/01/06/1136387607954.html

 
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2. Hearing Amending Class III, IV Milk Price Formula   back to top


The U. S. Department of Agriculture today announced that it will hold a national public hearing to consider a proposal seeking to amend the Class III and Class IV milk price formula manufacturing allowances for all Federal milk marketing orders. USDA will take evidence at the hearing to determine whether emergency marketing conditions exist that would warrant omission of a recommended decision. The hearing will begin at 8:30 a.m. on Jan. 24, 2006, at the Sheraton Suites Old Town Alexandria, 801 North Saint Asaph Street, Alexandria, Va. 22314.

The hearing was requested by Agri-Mark Dairy Cooperative to reconsider the manufacturing cost allowances provided for in the pricing formulas for cheese, whey powder, butter, and nonfat dry milk powder.

Source: USDA/ AMS, Jan. 4, 2006
Source URL: http://www.ams.usda.gov/news/292-05.htm

 
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3. Dreyer’s Shifts Production to Bakersfield Plant   back to top


Dreyer's Grand Ice Cream Holdings, Inc. announced today that with the completion in 2005 of a $100 million expansion of its Bakersfield, California, ice cream manufacturing facility, it will close its City of Commerce, California, manufacturing plant at the end of April, 2006, and shift production to Bakersfield.

The Commerce closure will impact 99 employees, but Dreyer's hopes to offer alternative positions or work locations, including jobs in Bakersfield, to most of those employees.

Source: Business Wire/ Dreyer's Grand Ice Cream Holdings, Inc./ News Release, Jan. 5, 2006
Source URL: http://home.businesswire.com/

 
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MARKETS

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4. Dairy Products: Butter Production Rises   back to top


Total cheese output (excluding cottage cheese) was 761 million pounds, 0.9 percent above November 2004 and 0.4 percent above October 2005.

American type cheese production totaled 312 million pounds, 3.2 percent above November 2004 and 0.2 percent above October 2005.

Butter production was 110 million pounds, 8.6 percent above November 2004 and 2.7 percent above October 2005.

Source: USDA/ NASS, Jan. 5, 2006
Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/dary0106.txt

 
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5. Dairy Products Prices Highlights   back to top


Cheddar Cheese prices received for US 40 pound Blocks averaged $1.43 per pound for the week ending December 31. The price per pound increased 1.1 cents from the previous week. The price for US 500 pound Barrels adjusted to 38 percent moisture averaged $1.41 per pound, up 0.6 cent from the previous week.

Butter prices received for 25 kilogram and 68 pound boxes meeting USDA Grade AA standards averaged $1.32 per pound for the week ending December 31. The U.S. price per pound decreased 0.3 cent from the previous week.

Source: USDA/ NASS, Jan. 6, 2006
Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/dppr0106.txt

 
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6. National Dairy Market at a Glance   back to top


BUTTER:  Butter producers and handlers were surprised at the firmness in the cash butter price at the CME during the week. Heavy churning activity and slower sales are two factors that are contributing to this uncertainty. Churning activity during the yearend holiday period was quite strong and continues so into the new year from coast to coast. Surplus cream offerings were heavy. Most butter producers were able to inventory holiday production for future needs, although some printers indicated that demand was sufficient to limit their inventory build up. Overall butter demand is lighter as buyers continue to assess their supply situation following the holiday period before re-ordering.
      
Note:  The CME announced that beginning Monday, January 9, 2006, Spot Call Butter will be traded a full five days a week. All trading times and contract specifications will remain the same. Butter producers, handlers and traders have been anticipating this move for a number of weeks, but question what impact this may have on cash and futures pricing.

Source: USDA, Jan. 6, 2006

 
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7. Weekly National Grain Market Review   back to top


Grain and soybean bids were higher except wheat which was mix in the first week of the New Year. A short week in the trading pits this week as Monday was a day off. Wheat found support from the higher corn and soybeans, however, the lack of overnight exports pressured the market. Corn and soybeans ended in a positive tone seeing up to double digit gains in the beans. Argentina experienced hot and dry weather this week causing stress in crops but the chances of moisture for next week looks promising. The weekly export sales were not released on Thursday due to the holiday early in the week but are expected to be out Friday morning. Wheat was 12 cents lower to 13 cents higher. Corn was mostly 2-5 cents higher. Sorghum was 3-9 cents higher. Soybeans were 8-10 cents higher.

Source: USDA/ AMS, Jan. 6, 2006
Source URL: http://www.ams.usda.gov/mnreports/SJ_GR851.txt

 
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8. National Carlot Meat Trade Review   back to top


Despite the holiday shortened week slaughter cow numbers continued to be moderate. This resulted in lower live slaughter cow prices across many regions of the county. In addition, this was fueled by light grinding demand causing packers to be willing to sell lean boneless beef at mostly steady prices. However, there were a few instances at higher prices for specific delivery periods. The lower lean percentage items traded at mostly higher prices, with the most demand being seen on straight loads of steer/heifer products. Thus, resulting in sharply higher prices on 81% and establishing the top-side on 85%. Import boneless beef prices were mostly steady on light demand and offerings. Market activity was slow to get started after the long holiday shut down. Cow prices were generally steady to lower with the most price decline being on the tenderloins. This was caused by seasonally light demand. Trading on 100% lean items was slow this week as demand was light for light to moderate offerings.
  
Lean boneless beef 92-94% 1.00 to 5.00 lower; 90% generally steady; 85% 1.00 to 2.00 higher; 81% sharply higher on steer/heifer product; 75% steady; 73% not established; 65% mostly 2.00 higher. 100% insides rounds steady; outside rounds and striploins firm to higher; eye of round, flat/eye and S.P.B weak to lower.

The Cutter cow carcass gross cut out value for Thursday, January 5, 2006 was estimated at 105.69 per cwt., dn .12 from a week ago Friday.

Source: USDA/ AMS, Jan. 6, 2006
Source URL: http://www.ams.usda.gov/mnreports/NW_LS850.txt

 
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PRODUCTION

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9. Paratuberculosis in Norwegian Reds   back to top


The Norwegian surveillance and control programme for paratuberculosis revealed 8 seroreactors in a single dairy cattle herd that had no clinical signs of Mybacterium avium subsp. paratuberculosis (M.a. paratuberculosis) infection.

Despite many animals being positive in one or both of the immunological tests, indicative of a heavily infected herd, none of the animals showed clinical signs and only one cow was shown to be shedding bacteria. A cross-reaction with other mycobacteria might have caused some of the immunoreactions in these animals. It is also possible that the Norwegian red cattle breed is resistant to clinical infection with M.a. paratuberculosis.

Source: Description of the infection status in a Norwegian cattle herd naturally infected by Mycobacterium avium subsp paratuberculosis. Acta Veterinaria Scandinavica 46 (2-Jan): 45-56, 2005. Holstad, B.G.; Sigurdardottir, O.G.; Storset, A.K.; Tharaldsen, J.; et al.

 
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10. Winter can Create Manure Management Issues   back to top


Protecting water quality would be easier if farmers never needed to apply manure when fields are frozen or covered with snow. But the fact is, some farmers don't have enough storage capacity to get through the winter. Sometimes, even farmers with storage facilities need to apply manure in the winter because wet fall weather or other problems delayed application.

Unfortunately, uncooperative winter weather can lead to pollution, even for farmers who follow winter manure application guidelines.

Source: Ohio State University/ BEEF Cattle Newsletter, Jan. 4, 2006
Source URL: http://fairfield.osu.edu/ag/beef/beefJan4.html

 
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DAIRY MARKET RESOURCES

USDA Agricultural Marketing Service Weekly Dairy Market Reports
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USDA Agricultural Marketing Service Dairy Market News
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USDA National Agricultural Statistics System Dairy Reports
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Chicago Mercantile Exchange Daily Dairy Report
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Chicago Mercantile Exchange - Dairy
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