California Dairy Farmers Want Dairy Crisis Deal Carried Out

Jul 25, 2013

California dairy producers filed a petition with the California Department of Food (CDFA) and Agriculture Secretary Karen Ross, requesting a hearing to put into action the milk pricing deal agreed to last week.

The deal is aimed at narrowing the price between what the state’s dairy farmers receive for their milk - which goes towards cheese production, and the price paid by processors in other U.S. states.

Dairy farmers and processors consented to a short-term understanding of $110-million that cheese processors will pay into the milk producers, which will be split up and shared among dairy farmers. The money will be generated by increasing the price of the state’s Class 4b milk, which is used for cheese processing – up to 46 cents.

Dairy is the number one agriculture commodity in California. The dairy industry has been struggling over the past five years. About 400 dairy farmers have been forced out of business, leaving the state with roughly 14,000 dairies remaining.

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!