Markets have been buzzing with activity, and you’re probably wondering what’s moving on the needle today. On Thursday, September 5, 2024, we saw interesting, steady-to-higher movements in CME cash dairy trading. It’s a sign that underlying shifts might need our attention. Let’s dive right into the numbers.
Dry Whey: Increased slightly by $0.0025 to hit $0.5675. Although no sales were recorded, this minor uptick is worth noting.
Forty-Pound Cheese Blocks: The price held steady at $2.23, with no sales recorded.
Cheese Barrels: Unchanged at $2.25, but we did see one sale at that price.
Butter: Increased by $0.0150, reaching $3.1625. Notably, three sales were recorded at prices ranging from $3.1625 to $3.17.
Nonfat Dry Milk: A modest uptick of $0.0025 brought the price to $1.3575. Two sales were recorded at prices close to this mark, $1.3575 and $1.36.
Class III and Cheese began lower Thursday morning, reflecting the previous day’s follow-through selling. Nearby futures fell 40-50 cents ahead of spot trade. While Wednesday’s spot stability dampened buyer interest, yesterday was different. Futures recovered from their lows, finishing just 10-20 cents down, thanks to an unaltered spot market. Remember that you must fuel a bull market, and spot stability might often be enough, given bullish fundamentals. Given previous USDA report shocks, market investors may also be positioning ahead of today’s July Dairy Product data. Class III futures traded well with over 2,600 contracts, with open interest increasing by 235 contracts. Cheese futures activity decreased, with 304 contracts traded, while open interest increased by 72 contracts.
Spot butter recorded its first advance in six days, up 1.5 cents on three deals. After 500 contracts were traded on Wednesday, barely 100 were transacted yesterday, mainly for September. Butter output is predicted to fall month after month and climb just 1.5% from last year, owing to potential milk diversions to cheese production. This will continue to boost these markets as we approach contract highs.
Spot nonfat increased marginally to a new high, while futures have stabilized over the past two days, decreasing by around 1-2 cents through Q2. Stable to weaker global markets are expected to have slowed the increase, but solid US fundamentals will keep nonfat prices high. As we trade near contract highs, end-users may feel under-hedged for 2025 and must decide whether to wait for a price drop or get coverage.
For the first week of September in the Upper Midwest, spot milk basis levels were consistent with the previous year. Labor Day brought fewer trading volumes. According to farmers and processors, recent warm weather has pressured milk production. School districts are in full gear, resulting in increased Class I demand. Despite the poor trade, several stakeholders reported no milk load proposals to the USDA, which was uncommon for a holiday week. Margin levels are usually favorable, signaling expansion to alleviate the limited milk supply, but there are few substitutes to fuel that increase.
Dairy cow slaughter in the United States remains low. For the week ending August 24th, the slaughter was a little over 50,000 head, down 12.91% from the previous year. Year-to-date slaughter is 14.40% lower than the prior year after 34 weeks. Over the last four weeks, dairy cow slaughter declined 14.04% year on year, the smallest margin in 14 weeks. Total beef slaughter is somewhat lower than a year ago, down 2.81%, as beef cows reclaimed some market share in the cattle market this week.
Daily CME Cash Dairy Product Prices ($/lb.)
Final
Change ¢/lb.
Trades
Bids
Offers
Butter
3.1625
1.5
3
3
1
Cheddar Block
2.23
NC
0
1
1
Cheddar Barrel
2.25
NC
1
0
0
NDM Grade A
1.3575
0.25
2
0
3
Dry Whey
0.5675
0.25
0
2
1
Weekly CME Cash Dairy Product Prices ($/lb.)
Tue
Wed
Thur
Current Avg.
Prior Week Avg.
Weekly Volume
Butter
3.1525
3.1475
3.1625
3.1542
3.182
16
Cheddar Block
2.215
2.23
2.23
2.225
2.128
2
Cheddar Barrel
2.26
2.25
2.25
2.2533
2.2115
3
NDM Grade A
1.3425
1.355
1.3575
1.3517
1.3115
10
Dry Whey
0.57
0.565
0.5675
0.5675
0.5605
2
CME Futures Settlement Prices
Tue
Wed
Thur
Class III (SEP) $/CWT.
22.54
22.6
22.83
Class IV (SEP) $/CWT.
22.51
22.38
22.7
Cheese (SEP) $/LB.
2.213
2.219
2.227
Blocks (SEP)$/LB.
2.135
2.135
2.217
Dry Whey (SEP) $/LB.
0.5328
0.5285
0.5558
NDM (SEP) $/LB.
1.2775
1.29
1.3275
Butter (SEP) $/LB.
3.165
3.17
3.1853
Corn (SEP) $/BU.
3.8525
3.9125
3.9
Corn (DEC) $/BU.
4.09
4.13
4.1075
Soybeans (SEP) $/BU.
9.96
1.005
9.995
Soybeans (NOV) $/BU.
1.015
1.0275
1.0225
Soybean Meal (SEP) $/TON
320
323.3
320.6
Soybean Meal (DEC) $/TON
321.1
328.6
326.9
Live Cattle (OCT) $/CWT.
179.53
179.18
177.13
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Maximize milk production with robotic milking. Learn essential tips for managing fresh cows, optimizing diet, and ensuring frequent robot visits. Ready to boost your yield?
Robotic milking systems are revolutionizing the dairy farming landscape, and the success stories are truly inspiring. Consider the case of [Farm A], where the adoption of a robotic milking system led to a remarkable 20% increase in milk production. This achievement was made possible by encouraging cows to visit the robots frequently, a key strategy for optimizing milk production. Frequent visits not only boost milk yield but also enhance overall herd health, reduce stress, and improve cow comfort. These benefits are not just theoretical, they are proven and can be a reality for your dairy farm.
“Frequent visits to the robotic milker can boost milk yield and improve overall herd health,” notes dairy expert Jamie Salfer, a University of Minnesota Extension educator,
As a dairy farmer, you are not a mere observer in this process; you are a key player in the success of robotic milking systems. Your role in ensuring cows visit the robots on their own is vital, and you have the power to create the right environment for this. By [maintaining a calm and quiet atmosphere around the robots], you can encourage cows to visit more frequently. This behavior starts in early lactation and is supported by good pre-calving management. Your focus on these areas can unlock the full potential of your robotic milking system, leading to higher milk production and better farm efficiency.
The Foundation of Robotic Milking Success: Fresh Cows and Early Lactation
Early lactation, the period immediately after calving, is a critical phase for the success of a robotic milking system. This is when cows develop habits that greatly influence their willingness to visit milking robots, highlighting the importance of timing and preparation in maximizing milk production. Focusing on early lactation and pre-calving management can inspire higher milk production and better farm efficiency.
In early lactation, cows naturally have an enormous appetite and higher milk production needs. This drives them to seek food and milk more often. By providing comfort, proper nutrition, and a smooth transition, you encourage cows to visit robots voluntarily, boosting overall production and cow well-being.
Effective pre-calving management and a robust transition program are not just empty promises; they are provensuccessful strategies. This includes [ensuring cows are in good body condition before calving], [providing a clean and comfortable calving area], and [monitoring cows closely for signs of calving]. These strategies have been tested and have shown promising results. They help fresh cows start healthy and adapt to the robotic system quickly. In short, the more cows visit the robot, the better the milk production and efficiency. So, you can be confident in the effectiveness of these strategies.
Nurturing Success: Essential Precalving Strategies for Robotic Milking
Success with robotic milking starts before calves even arrive. Key factors include a stocking rate of 80% to 90% for fresh cows and ensuring at least 30 inches of bunk space. This reduces stress and boosts feed intake for a smoother lactation transition.
A good transition cow program , a set of management practices designed to prepare cows for the transition from dry to lactating, is crucial. Daily monitoring of rumination, activity, and manure is essential to spot health issues early. A balanced diet before calving meets nutritional needs and boosts post-calving intake. By emphasizing the importance of daily monitoring and a balanced diet, you can instill confidence in your ability to optimize milk production.
Investing in a solid transition program trains cows to voluntarily visit robotic milking systems after calving. This reduces manual work and maximizes milk production, making the automation process much smoother.
Keys to Optimizing Robotic Milking Efficiency: Stocking Rates and Bunk Space
Maintaining a proper stocking rate, the number of cows per unit of land, is critical to optimizing robotic milking. Ensuring an 80% to 90% stocking rate for refreshed cows creates a less stressful environment, helping cows adapt to the new milking routine. Overcrowding can cause resource competition and stress, reducing visits to the milking robot and lowering productivity.
Equally important is providing at least 30 inches of bunk space per cow. Adequate space ensures each cow can comfortably access the feed, promoting better partial mixed ration intake (PMR). This supports higher nutritional intake, which is essential for the energy needed for frequent robot visits and high milk production.
When cows are less stressed and have easy access to nutritious feed, they are more likely to visit the robotic milking system independently. This boosts the system’s overall efficiency and helps increase milk production. Proper stocking rates and bunk space are foundational for a smooth transition to robotic milking and enhanced farm productivity.
Daily Observations: The Cornerstone of Fresh Cow Health and Robotic Milking Readiness
Regular checks of fresh cows are not just necessary; they are crucial for their health and readiness for robotic milking. Monitoring rumination, the process by which cows chew their cud, activity, and manure daily allows for quick adjustments, ensuring cows are fit for frequent robot visits and high milk production. This emphasizes the need for continuous monitoring and adjustment.
Feeding Success: The Role of Nutrition in Robotic Milking Systems
A well-balanced diet is fundamental for high post-calving intake. Proper nutrition supports fresh cows’ health and encourages frequent visits to the robotic milking system.
Fresh cows are sensitive to dietary changes. Providing a consistent and nutrient-rich diet makes a big difference. High-quality feed maintains energy, supports immune function, and ensures healthy digestion. This keeps cows active and engaged, leading to more visits to the milking robot.
Frequent visits are essential as they boost milk production. Each visit maximizes milk yield and optimizes components like fat and protein. A well-formulated diet greatly enhances the cow’s comfort and willingness to visit the robot.
A solid nutrition plan is crucial for a robotic milking system. High post-calving intake improves cow health and well-being and encourages behavior that maximizes milk production.
The Central Role of Partial Mixed Rations (PMR) in Robotic Milking Success
The Partial Mixedration (PMR) delivered to the feedback is crucial to robotic milking systems. The PMR supplies 80% to 90% of the essential nutrients dairy cows need. This ensures cows have a balanced diet, which is vital for their health and milk production.
Importance of PMR: A consistent, high-quality PMR at the feedback is essential. It gives cows continuous access to necessary nutrients, reducing the risk of metabolic disorders and supporting high milk yields.
Boosting Milk Production: A well-formulated PMR delivers essential proteins, carbs, fats, vitamins, and minerals. For instance, a balanced PMR might include 16-18% crude protein, 30-35% neutral detergent fiber, 3-4% fat, and a mix of vitamins and minerals. These nutrients sustain peak lactation, maximizing milk output and providing better economic returns.
Encouraging Robot Visits: The PMR keeps cows healthy and energetic, prompting them to visit the milking robot. The optimized feed composition entices cows to the robot for supplementary feed, creating a positive cycle of frequent milking and higher milk production. A well-formulated PMR can also reduce the risk of metabolic disorders, improve immune function, and support healthy digestion, all of which contribute to higher milk yields.
The Bottom Line
Success with robotic milking starts before calving. Proper pre-calving management and preparing fresh cows for early lactation are crucial. Maintaining the appropriate stocking rates and ensuring enough bunk space lets cows thrive.
Daily checks of rumination, activity, and manure matter. A balanced diet boosts post-calving intake and promotes frequent robot visits. Partial Mixed Ratios (PMR) are crucial to driving milk production.
Automated milking aims to meet cows’ needs, keep them healthy, and optimize milk production efficiently. Focusing on these aspects ensures your robotic milking operation runs smoothly and sustainably.
Key Takeaways:
Early Lactation is Crucial: Habits formed during early lactation influence the cow’s willingness to visit the robots.
Precalving Management Matters: A solid transition cow program is essential to get cows off to a good start.
Optimal Stocking Rates: Aim for a stocking rate of 80% to 90% for prefresh cows to encourage voluntary robot visits.
Bunk Space Requirements: Ensure at least 30 inches of bunk space per cow to prevent overcrowding and stress.
Daily Monitoring: Pay close attention to rumination, activity, and manure to keep fresh cows healthy.
Nutritional Focus: A good diet and precalving management promote high post-calving intake, leading to more visits to the robot and increased milk production.
Importance of PMR: Partial Mixed Rations are indispensable for maintaining high milk production and encouraging robot visits.
Summary: Robotic milking systems are transforming dairy farming by increasing milk production by 20%. This success is attributed to the optimal environment for cows to visit the robots, which can boost milk yield, herd health, reduce stress, and improve cow comfort. Dairy farmers play a crucial role in the success of robotic milking systems by creating the right environment for cows to visit the robots. Early lactation is crucial as cows develop habits that influence their willingness to visit the robots. Key factors for success include a stocking rate of 80% to 90% for fresh cows and at least 30 inches of bunk space. A good transition cow program and a balanced diet before calving meet nutritional needs and boost post-calving intake. Optimizing robotic milking efficiency involves maintaining a proper stocking rate, providing at least 30 inches of bunk space per cow, and monitoring rumination daily.
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