CME: DEC Milk Futures Sell Off

US - Nearby Class III futures plunged after barrels were offered a quarter-cent lower, the first loads offered this month, writes Alan Levitt.
calendar icon 17 November 2011
clock icon 1 minute read

Blocks held unchanged on an uncovered offer. DEC milk futures traded limit-down (-75¢) at one point but came back slightly to finish at -56¢.

DEC cheese futures were down (-5.6¢) as well. Spot butter dropped 3¢, sending butter futures lower after two days of solid gains.

Corn futures have remained uncharacteristically steady for more than a month. The JUL12 contract has settled between $6.50 and $6.85/bushel every day since 11 October.

USDA projects carryout stocks of just 843 million bushels next year, only 6.7 per cent of use. However, the stronger dollar (up 4.2 per cent vs. the euro since 28 October) is raising concerns that US corn exports will slow.

Retail milk prices pulled back in October after increasing 12 straight months. The Milk CPI was 149.4, down one per cent from September.

Year-to-date retail milk prices are up 9.1 per cent from last year. The Butter CPI for October was 213.3, down 1.1 per cent from September, while the Cheese CPI was 227.3, up 0.1 per cent and another new high.

The October “Milk Production” report comes out Friday afternoon.

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.