CME: Milk Futures Fall
US - Milk futures came under signficant selling pressure today as cash markets continued to decline, writes Alan Levitt.
19 January 2012
1 minute read
Contracts through JAN 2013 suffered double-digit losses. MAR and APR posted the
greatest losses down 60¢ and 63¢ respectively.
APR through JUN fell below $17.00 today
resulting in futures for the first half of the year falling an average of 45¢ eliminating all of the
gains since early December.
Block cheese fell 4¢ to $1.5550 and the lowest price since January 21, 2011. Barrels lost 1.25¢
to $1.5250 and the lowest price since April 7, 2011. There were 3 loads traded in blocks and 1
for barrels with offers remaining on the table. Butter lost 1.75¢ to end at $1.5775 and the
lowest price since December 1, 2010.
USDA estimates the all-milk price for this year to average $18.70 according to the World
Agricultural Supply and Demand report released last week. If realized, this would be similar
to the pattern of 2004-2005 and 2007-2008 (see chart).
Also on the report, the estimate for
butter price was left unchanged at $1.66/lb., cheese price was lowed 2¢ to average $1.6950/lb. while dry whey price increased 7¢ to 62¢/lb. Total
milk production remained unchanged at 198.5 billion lbs., up 2.5 billion lbs. from 2011.
USDA will release the December “Cold Storage” and “Livestock Slaughter” reports on Friday
Further Reading
 | - | You can view the full report by clicking here. |
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