HARRISBURG, Pa. — The Center for Dairy Excellence is hosting its monthly “Protecting Your Profits” webinar on Wednesday, December 22 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.
“DMC rules were recently announced along with the Supplemental Production History and DMC 2022 enrollment periods. The alfalfa high price change also became official, so join me on the next ‘Protecting You Profits’ webinar to learn more about DMC enrollment and how the feed price change will affect margins retroactively to January 1, 2020,” Myers shared.
During the webinar, Myers will highlight the Class III and IV futures milk price forecasts and share data on dairy exports:
- Class III and IV futures continued to improve through November. As of December 10 closing prices, the average Class III price for the next 12 months was up $1.04 per cwt since the same time last month to $19.53.
- Class IV and Class III prices continue to be inversed with the 12-month average Class IV price at $20.21, 68 cents per cwt higher than the Class III average.
- October exports fell short of year-over-year volumes by less than 1%. Strong cheese and butterfat exports nearly offset declines in milk powder and whey with ongoing port congestion receiving most of the blame for the first YOY decline since January.
- Despite the slight drop in exports, value still increased YOY as a result of higher dairy product prices relative to last year. October exports were valued at $660.0 million, over 17% higher than October 2020.
In addition, Myers will share updates on Dairy Margin Coverage (DMC) margins. The DMC 2022 enrollment period opened on December 13, 2021 and will continue through February 18, 2022. The alfalfa hay price change also became official, and Supplemental Production History enrollment opened to run simultaneously with DMC 2022 enrollment. The October DMC margin was originally announced as $8.77 per cwt. However, since finalizing the alfalfa hay price change, the actual margin fell an additional 23 cents to $8.54.
“The updated DMC Decision Tool was also recently released. We’ll take a look at what current projections look like for 2022 for milk price and feed cost,” Myers added.
Myers will provide additional updates on the Dairy Revenue Protection (DRP) program to guide decision making by sharing quarterly price floors. As of December 16, DRP policies are available for quarter two 2022 through quarter two 2023 until March 15, 2022.
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/DecemberPYP on Wednesday, December 22 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, December 22 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 December 22 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 email@example.com. 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.
–Emily Barge, Center for Dairy Excellence