CME: Milk Per Cow Above Trend
US - Productivity per cow increased 2.5% for January 2012 vs. January 2011. This is 1.0% greater than the historical average gain of 1.5% annually, writes Alan Levitt, in Tuesday's dairy report.
22 February 2012
1 minute read
Looking forward, additional
above trend gains in milk production per cow are expected largely due to the lower than
average gain in milk per cow through most of 2011. This will be especially true through
July 2012 because milk per cow was significantly below trend and even negative during
this period in 2011 vs. robust gains posted in 2010. That is, unless lack of profitability
and/or climatic factors come into play.
CME cash dairy product markets felt a mild hang-over from last Friday’s bearish
January “Milk Production” report during today’s trading session. Blocks traded as high
as $1.4900/lb. before additional volume pushed the market slightly lower. A total of 10
loads traded and blocks closed 0.25¢ lower at $1.4850/lb. The barrel market was
unchaged with no trades at $1.4800/lb. Class III Futures responded with double-digit
declines through most of 2012. Spot butter prices closed unchanged at $1.4150/lb. with
a single bid left on the board.
USDA’s “Cold Storage” report will be released tomorrow at 2pm CT.
Further Reading
 | - | You can view the full report by clicking here. |
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