CME: 2011 December Class III - $18.77

US - The December Class III price was $18.77, down 30¢ from November, writes Alan Levitt.
calendar icon 3 January 2012
clock icon 1 minute read

The Class IV was $16.87, down $1.00. Buoyed by whey prices, the value of Class III is $1.90 higher than Class IV, the largest spread since December 2008. Class III futures for 2012 average $17.24 (see chart).

Feed costs were lower in December but so were milk prices, leaving farm profitability down slightly from November.

The All-Milk price was estimated at $19.80, down 60¢ from November, while feed costs decreased about 3.5 per cent, according to USDA’s “Ag Prices” report.

The corn price declined 40¢/bushel to $5.44 and soybeans dropped 60¢/bushel to $11.10, while alfalfa hay increased $1/ton to $199.00. Feed costs compute out to $10.53 per hundred pounds of milk, leaving “Income over feed costs” of $9.27/cwt., down from $9.49/cwt. in November. This is slightly above the 10-year average IOFC of $9.09/cwt.

NASS dairy product prices for the week ending 24 December: cheddar blocks $1.6977 (-7.62¢ vs. the prior week); barrels $1.6356 (-7.43¢); butter $1.5918 (-0.04¢); nonfat dry milk $1.3766 (-6.52¢); dry whey 65.99¢ (+0.37¢).

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.