CME: DEC Milk Futures Sell Off
US - Nearby Class III futures plunged after barrels were offered a quarter-cent lower, the first loads offered this month, writes Alan Levitt.
17 November 2011
1 minute read
Blocks held unchanged on an uncovered offer. DEC milk
futures traded limit-down (-75¢) at one point but came back slightly to finish at -56¢.
DEC
cheese futures were down (-5.6¢) as well. Spot butter dropped 3¢, sending butter futures
lower after two days of solid gains.
Corn futures have remained uncharacteristically steady for more than a month. The JUL12
contract has settled between $6.50 and $6.85/bushel every day since 11 October.
USDA projects
carryout stocks of just 843 million bushels next year, only 6.7 per cent of use. However, the
stronger dollar (up 4.2 per cent vs. the euro since 28 October) is raising concerns that US corn
exports will slow.
Retail milk prices pulled back in October after increasing 12 straight months. The Milk CPI
was 149.4, down one per cent from September.
Year-to-date retail milk prices are up 9.1 per cent from last year. The Butter CPI for October was 213.3, down
1.1 per cent from September, while the Cheese CPI was 227.3, up 0.1 per cent and another new high.
The October “Milk Production” report comes out Friday afternoon.
Further Reading
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