CME: USDA Projects $18+ Milk Next Year
US - Milk futures pulled back in the face of a cheese market that may have run out of steam, writes Alan Levitt.
10 November 2011
1 minute read
Class III contracts for the front 12 months were off a nickel. Blocks lost a quarter cent
today on offers. Activity on barrels was almost non-existent.
Sellers pounded butter lower,
trading two loads at $1.80, two more at $1.7975 and three more at $1.79. On the other
hand, a load of Grade A NDM was bid a quarter-cent higher. Cheese, whey and butter
futures were mixed.
USDA increased its forecast of 2012 milk prices on the strength of an improved outlook for
cheese, whey and butter. The All-Milk price for 2012 is projected to be $18.05-$18.95,
down about $1.65 from this year’s record price (see chart).
The milk production outlook
remains the unchanged from the October report: 198.4 billion lbs. next year, up one per cent from
this year (adjusted for leap day in 2012).
Export volumes are projected to drop about four per cent
next year, but USDA expects this to be more than offset by increased domestic use.
Weekly NASS survey prices come out tomorrow at noon CT, as USDA offices are closed Friday for Veterans Day. CME Group agricultural
commodities trade at regular hours on Friday.
Further Reading
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