The Discussion Will Take Place on November 23 at 12 p.m. and Provide Dairy Market Updates
The Center for Dairy Excellence is hosting its monthly “Protecting Your Profits” webinar on Wednesday, November 23 at 12 p.m. Held the fourth Wednesday of every month and led by Zach Myers, Risk Education Manager with the Center, the webinar will review current data and updates about the milk marketplace to guide decision-making and risk management strategies. Individuals can join via conference call, webinar, or podcast format.
“There has been a mix of stabilization and volatility when you compare Class III and Class IV milk futures prices, while U.S. exports have been maintaining their record pace. We’ll discuss these market updates and more during the ‘Protecting Your Profits’ discussion on November 23,” Myers shared. “We have also been working to revamp and improve our printed and online risk management resources. We’ll share more about our updated resources and how risk management can help you meet your business goals.”
During the webinar, Myers will highlight export numbers and the latest Class III and IV futures milk price forecasts:
- Class III milk futures stabilized somewhat through the last half of October and the first half of November. As of November 11, the 12-month average Class III futures price is now $20.59/cwt, five cents/cwt. less than mid-October. Cheese demand is picking up and is helping to stabilize the Class III price.
- Class IV milk futures remain more volatile behind high butter prices, causing reduced demand and sluggish Class IV powder product exports. This has caused an 86 cents drop in the 12-month average Class IV price since mid-October to $21.08 per cwt. Class IV average price was down 67 cents this time last month compared to mid-September. This represents a Class IV average futures price decline of $1.53/cwt. over two months.
- U.S. exports maintained their record pace through September. Volume rose 7 percent year-over-year to 199,804 metric tons, and value increased 20 percent to $780.0 million.
In addition, Myers will share updates on Dairy Margin Coverage (DMC) margins. September was the second month this year and the second month in a row for DMC to trigger indemnities. The September DMC margin was announced as $8.62/cwt. and triggers indemnities at the $9.00 and $9.50 margin coverages. For the first time since May, the September U.S. all-milk price showed improvement and rose 10 cents compared to the previous month to $24.40 per cwt. The September feed price decreased 44 cents/cwt. from the $16.22 August record high cost to average $15.78/cwt. The result was a net improvement in the margin of 54 cents/cwt.
“Dairy farmers now have less than a month left to enroll for 2023 DMC. DMC has been an extremely successful program that has provided a net benefit each year since 2019 to those enrolled at the $9.50 margin coverage,” Myers added. “Projections for 2023 continue to show tight margins with the likelihood of indemnities triggered most or all of next year. Enrollment is scheduled to end on December 9, 2022.”
Myers will also provide updates on the Dairy Revenue Protection (DRP) program to help guide decision making for 2023. First quarter 2023 DRP sales will close on December 15, 2022. After that, sales shift from second quarter 2023 through second quarter 2024.
To join the risk management discussion and access the information in a format that is most convenient for you, the Center offers the series in a webinar, podcast, and conference call format. There is no cost to participate in the monthly ‘Protecting Your Profits’ discussion, and no registration is necessary.
Visit www.centerfordairyexcellence.org/NovemberPYP on Wednesday, November 23 at 12 p.m. to launch the webinar. Follow the Center on Facebook or YouTube to watch a live stream on social media as well.
Conference Call Format
Individuals who would prefer to connect via conference call can dial the following number on Wednesday, November 23 at 12 p.m.:
Meeting ID: 848 3416 1708
Visit www.centerfordairyexcellence.org/pyp to listen to the “Protecting Your Profits” podcast and subscribe to get notified when new episodes are released. Episodes are expected to be published after the live webinar and conference call are concluded each month.
Join the Center on November 23 to find out how these programs and the conventional price risk management tools can fit in to your marketing plan. For more information, call 717-346-0849 or email Myers at firstname.lastname@example.org. The webinar will start promptly at noon and last approximately 15 minutes. They are recorded and posted on the Center for Dairy Excellence website for those who are unable to join the live session.