CME: Milk Intakes Still Near Annual Lows
US - November milk futures climbed to a new high, and January and February Class IIIs each posted 10¢ gains in an otherwise calm day in the dairy markets, writes Alan Levitt.
8 November 2011
1 minute read
The first quarter of 2012 averages
$16.79, the highest in six weeks.
Barrels were bid another penny higher today to $1.93.
Blocks were offered a quarter-cent lower to $1.8775. This is the third time in the last
four years that we’ve seen an inverted block-barrel spread in early November.
Cheese futures were mostly steady. First quarter contracts average $1.657, down more
than 20¢ from current cheese prices.
Open interest on cheese futures have practically
tripled in the last six months. At the end of last week, open interest reached a new high
of 6,584 contracts.
In addition, open interest on whey futures were up almost 50 per cent from
six months ago.
“Milk intakes are near annual low levels in the Northeast, Upper Midwest and Pacific
Northwest,” says USDA’s Dairy Market News.
Production in California is still mostly steady from week to week. Cool weather in the West and
mild conditions in the Midwest are keeping cows comfortable. Output is increasing in the southern tier of states now that summer heat is in the
rear-view mirror. cm
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