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.
calendar icon 22 February 2012
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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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