MD_DA902

     Organic Dairy Fluid Overview

     Report 4 - Released on January 24, 2020

     New England Organic Milk Sales and Sourcing. Federal Milk Market Order 1, in New England,
     reports utilization of types of organic milk by pool plants. During November 2019, organic
     whole milk utilization totaled 16.3 million pounds, up from 15.8 million pounds November
     2018. Butterfat content for November 2019 was 3.27 percent, up from 3.26 percent one year
     earlier. The utilization of organic reduced fat milk for November 2019, 15.9 million
     pounds, was down from the 18.8 million pounds one year earlier. Meanwhile, butterfat content
     was 1.43 percent, up from 1.37 percent November 2018.

     U.S. Organic Milk Pay Price. The December 2019 farm gate organic milk pay price of a
     national organic dairy cooperative was $32.42, with a twelve-month average price of $31.30,
     based on 12.9 percent total solids. The organic pay price is the amount accepted by organic
     dairy producers who contract with a large national organic cooperative, and  based on the
     geographic area where the organic milk is produced and whether it is grass milk.

     Organic Cow Auction Prices. In a recent report of a livestock auction in Oregon, organic top
     9 Holsteins and Jerseys cull cows sold for an average price of $47.10 per hundredweight. A
     cold winter and late spring meant more cows were thin heading out to pasture. Wet summer
     weather brought plenty of grass, but nutritionally it was low in energy and nutrients.

     Organic Dairy Market Conditions Update. Sources noted offers for spot loads of organic
     cheese, nonfat dry milk, butter, and cream in the organic dairy marketplace are sluggish.
     The indication is that 4th quarter inventories were potentially well balanced, leaving fewer
     surplus supplies. As well, organic milk output has been challenged as some dairy farms
     return to conventional production, diminishing the available organic milk supply into
     processing in some areas.


     ORGANIC GRAIN FEEDSTUFF OVERVIEW

     National Organic Grain and Feed Markets. Buying/selling activity for organic feed grade corn
     markets remains good, at a moderate demand  level. The bulk of forward contracts this period
     were finalized for January to April deliveries. January 2020 cash bids shifted lower, 25
     cents, in comparison to December 2019. Trade activity is light, on good demand, for organic
     feed grade soybeans. Procuring soybeans is problematic for some buyers, even as cash bids
     improve. Trade activity and demand is light for organic feed grade wheat. Organic feed grade
     hard red winter wheat decreased to 6.50-8.00 delivered elevator. Trade activity on all other
     organic grains is sluggish.

     Information for the period January 20 - 24, 2020, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     DANIEL JOHNSON, 608-422-8605
     Email: daniel.johnson4@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov