Spring Weather Threatens Severe Grain Shortages Later in
’08 (p. 1):
Millions of acres of U.S. farmland in the Midwest have been
drowned by torrents of rainfall in 2008. Easily, we’ll see $8 per bushel corn
prices. The U.S. food production system has evolved to rely on ample, cheap
corn.
DFA Faces Federal Indictment for Cheddar Price
Manipulations (p. 2):
On May 19, The Wall Street Journal reported that the U.S.
Department of Justice was investigation Dairy Farmers of America for alleged
Cheddar price manipulation at the Chicago Mercantile Exchange. That paper
implied that DFA will soon be indicted on such charges. We analyze …
May 2008 Class III Price $18.18 – May Class IV $15.26 (p.
2):
We report the May 2008 USDA class prices for cheese milk and
butter-powder milk.
Key Dairy Provisions of the 2008 Farm Bill (p. 3):
Finally, legislators in Washington, D.C. have created a 2007
farm law! It’s mostly the “same-old, same-old.” Details are discussed. Most
interesting is a “Modified MILC Program” which will be further clarified next
month.
NMPF Announces Another Round of Cow Killings (p. 3):
Here they go again! The National Milk Producers Federation
has announced details of yet-another round of killing U.S. dairy cows. This time
NMPF’s rationale is to relieve dairy farmers of high costs. NMPF will kill bred
heifers too – offering $1050 per head. That’s about half of prevailing market
prices.
Fonterra Claims $1.2 Billion Profits in U.S. Trading (p.
3):
At the expense of U.S. dairy farmers, Fonterra (New Zealand’s
quasi-dairy trading monopoly) has announced profits from U.S. trading ventures
of $1.2 billion last year. Told you U.S. co-ops were giving away milk powder to
Fonterra!
Feature Stories -- DFA’s Mounting
Losses, $1 Million Payout & Antitrust Investigation
Read this month’s reports
of the latest news on how the nation’s largest dairy co-op continues to screw up
in every way possible.
No Honest Market: One Trade at CME in 10 Years (p. 5):
Writer John Bunting shows how there’s was only ONE trade of
nonfat dry milk for 10 years at the Chicago Mercantile Exchange. That’s no
“market,” but rather a price-setting mechanism for the milk powder price-fixers.
Farm Milk Prices: European Union & Oceania (p. 5):
We discuss prices received by dairy farmers in western Europe
and Oceania. U.S. milk prices, right now, are among the lowest among major,
modern dairy-producing nations.
Shocker: Illinois Ag Department Oks Bos’ Mega-Dairy (p. 6):
On May 30, the Illinois Department of Agriculture approved
plans for the first “mega-dairy” proposed by Californian A. J. Bos at a site
near the tiny community of Nora in Jo Daviess County. Locals are fighting back
with lawsuits against the proposal.
Bos’ California-to-Nevada Raw Milk Sales Irksome (p. 6):
Californian A. J. Bos has ticked off dairy producers on both
sides of the California/Nevada border with a scheme moving farm milk to fluid
processors in Nevada. Nevada dairy producers whose milk has been displaced from
local plants are forced to send their milk to California for processing into
lower-priced butter and milk powder.
2007: CME Class III Futures Averaged $4.00/cwt. Below
Settlement Price (p. 7):
Any dairy farmers want to lost $4.00/cwt. (plus commissions)?
Just sign up for CME Class III futures contracts. In 2007, the average
difference between CME Class III (cheese milk) futures contracts and actual
monthly settlement prices was $4.00 per cwt. What a farce!
Clyde Rutherford’s “Dairy of ‘Di-STINK-tion’” (p. 8):
The cows are gone from “Old Clyde” Rutherford’s home farm. So
this “president for life” of Dairylea Co-op (and DFA director) has some cows at
a dairy farm where the manure handling problems create a big stink. Read about
the Northeast’s most prestigious dairy leader’s slop-hole farm.
2004 CME Cheddar Price Manipulations Detailed (p. 9):
Here’s where the bear went through the buckwheat! 2004 was a
wild, roller-coaster ride for Cheddar pricing at the Chicago Mercantile
Exchange. That’s the year, according to The Wall Street Journal, that DFA faces
indictments for alleged price manipulations of Cheddar at CME. Writers John
Bunting and Pete Hardin detail that year’s cash block Cheddar’s up-and-down
cycles … with behind-the-scenes motives included.
Farm Bill Fiasco: Import Assessment “Fix” Satisfies No One
(p. 10):
After many years, National Milk Producers Federation
successfully lobbied for a jiggering the rules of the rules on the mandatory,
15-cent per cwt. assessment levied against dairy farmers’ milk incomes. But the
“fix” stinks. That “fix” entails:
* Extending the U.S. dairy promotion assessment to producers
in Hawaii, Alaska and Puerto Rico (all deficit milk production areas). The
promotion assessment is also charged to importers … but at the rate of 7.5-cents
per cwt. Importers may also collect a refund on their assessments! WHAT A DEAL:
* Half the assessment, refundable. Many U.S. dairy farmers
would gladly accept that deal.
Tight Times Revive Good Management Tips for Dairymen (p.
11):
Writer Paris Reidhead reviews some basic good
management for dairy farmers who are looking to tighten up their farming
operations, in light of higher costs for grain and forage.
Organic Dairy Update (p. 12):
Writer Will Fantle of the Cornucopia Institute updates
readers on legal matters involving challenges to the organic status of Aurora
Organic Dairy of Colorado.
Details of the Wiese’s Lawsuit (p. 12):
Former dairy farmers Walter and Carla Wiese of Athens,
Wisconsin have struck back, legally, against the Community Bank of Central
Wisconsin – the bank that foreclosed on their farm. The Wieses filed a detailed
federal lawsuit naming the Bank, numerous employees, the Bank’s board of
directors, and USDA’s Farm Services Agency.
Weather Poses Big Headaches for Many Agriculturists (p.
13):
Organic farmer Karen Kinstetter writes about how tough
weather is hammering many kinds of farmers across the Midwest and Plains.
Karen’s report is full of key data about the U.S. and global food situations.
Dairy Cattle Replacement Prices at Auction Across the USA
(p. 14):
Dairy livestock prices are up in many parts of the country.
HOWEVER:
Widespread bad weather in the Midwest may force distress sale of livestock, due
to shortages of grain and forage, in areas that have been smashed.
Vicious Spiral: Oil Imports + Federal Deficit = Weaker U.S.
Dollar (p. 14):
Pete Hardin details the cycle of a weak U.S. dollar (due to
federal deficits) and higher energy prices – especially oil. Until the U.S.
currency is strengthened by long-term commitments, our costs of energy will keep
climbing as OPEC nations raise oil prices to keep their net, dollar-based
incomes stable.
DOJ Should Take Over DFA as a “Corrupt Organization” (p.
15):
In Pete Hardin’s opinion piece, he lays out why compelling
national interests would be best served by the U.S. Department of Justice’s
taking over Dairy Farmers of America as a “corrupt organization.” That move
would be parallel to DOJ’s seizure of the Teamsters Union in the 1960s. No
interests are served by “business as usual” at DFA that would lead to a
financial collapse.
Cheddar peaks, Then Tumbles at CME: Uncertainty Ahead (p.
16):
Cheddar blocks continued their up-and-down price
cycles at the Chicago Mercantile Exchange. But massive damage to this nation’s
grains and forages mean that future dairy prices are unpredictable, but likely
much higher.