CME: On-Farm Expansion Slows Down
US - Spot prices and milk futures were generally quiet today. Barrels were bid a penny higher, butter was offered three-quarters-of-a-cent lower. Whey futures are at contract highs out to 12 July, writes Alan Levitt.
21 December 2011
1 minute read
Cow numbers have flattened since mid-year. In the June-November period, 50-state cow numbers were up just 8,000 head after expanding by 7,000 head per month for the previous year-and-a-half, according to USDA’s latest “Milk Production” report (see chart).
Prices were mixed on the semi-monthly Global Dairy Trade auction. The weighted average price for SMP was $3,312/ton ($1.50/lb.), down 3.2 per cent from the 6 December event.
Winning prices for Whole Milk Powder averaged $3,589/ton ($1.63/lb.), down 1.5 per cent. However, butterfat and cheese were higher. The weighted-average price for AMF was $4,183/ton ($1.90/lb.), up 4.8 per cent from the 6 December event and the highest since early September.
Cheddar cheese was $3,601/ton ($1.63/lb.), up 1.0 per cent. After increasing in three of the last four auctions, the overall trade-weighted index was down 1.6 per cent from the previous event.
Holiday schedule: CME Group dairy trading will be closed Monday, 26 December, in observance of Christmas. Regular trading hours will take place on Friday, 23 December. Globex for dairy will re-open at 9:05am CT on 27 December.
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