September 13,2014
Butter Hits $3 On CME
Friday the spot dairy price for butter hit an all time high of $3 a pound on the Chicago Mercantile Exchange (CME). Butter has led dairy commodities higher this year as both domestic and export sales have surged. Tulare County dairyman Tom Barcellos says” “you know people in the US are ready to go back to butter when the cover of Time magazine says its OK to eat it.” Earlier this summer the magazines cover story was – Eat Butter: Scientists Labeled Fat the Enemy. Why they were wrong”.
But Barcellos and others expect the price to come back to earth in a matter of weeks as this is the time orders are strongest for the coming Holiday season when butter is in huge demand.
Butter prices in the past few years have been as low as $1.25 lb and started 2014 selling for around $1.50lb. That’s why it doubling to $3 is big deal.The previous record was $2.85 set back in 1988.Boosting butter has been a increase of 42% in exports in the first half of this year.
USDA Forecast Navel Orange Production At 78 Mil Cartons – Down From 85 & 90 Mil Cartons For Past Few Years
USDA is forecasting a Central Valley Navel Orange crop at around 78 million cartons, down from 85 million cartons last year and 90 million cartons the year before. The annual forecast says navel orange bearing acreage is down to 126,000acres from 128,000 last year and a high of of 135,000 acres in 2009. Average set per tree is 333,better than the 265 average last year. But the fruit size is somewhat smaller. The set per tree in Tulare County is 308 compared 396 in Kern County.Given fears of massive losses due the drought the fall and winter crop forecast is somewhat reassuring that production declines this year will be moderate.
DESPITE DROUGHT – RECORD WALNUT PRODUCTION FORECAST
The 2014 California walnut production is forecast at a record 545,000 tons, up 11 percent from 2013’s production of 492,000 tons. This forecast is based on the 2014 Walnut Objective Measurement (O.M.) Survey, officially conducted by the National Agricultural Statistics Service August 1 through August 22, 2014.
Despite a lack of chilling hours and a drought that has hit California, the 2014 walnut crop is forecast at a record level. Growers used surface water where available and groundwater when necessary to provide adequate water supply to the trees. Weather conditions during the growing season were mild thus benefiting the crop. Crop quality is excellent with low disease and insect pressures. Overall, the 2014 crop is developing faster than last year and harvest is expected to start early.
The 2014 Walnut O.M. Survey utilized a total of 746 blocks with two sample trees per block. Survey data indicated an average nut set of 1,372 per tree, up 11 percent from 2013’s record low average of 1,239. Percent of sound kernels in-shell was 98.7 percent Statewide. In-shell weight per nut was 21.2 grams, and the average in-shell suture measurement was 32.5 millimeters. The in-shell cross-width measurement was 32.4 and the average length in-shell was 38.1 millimeters. All of the sizing measurements were above average levels.