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.
calendar icon 21 December 2011
clock icon 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.

Further Reading

- You can view the full report by clicking here.

Daily Dairy Report - Copyright © 2008 CME. All rights reserved.

TheMeatSite News Desk
© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.