CME: Fluid Milk Sales Down This Year

US - Last week was the busiest week for barrel trade in more than two-and-a-half years. In contrast, yesterday there were no trades on cheese, butter or powder, writes Alan Levitt.
calendar icon 13 December 2011
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Blocks and butter each were offered 2¢ lower, barrels settle unchanged.

Milk futures were 2-8¢ higher in the FEB-DEC12 contracts. JAN butter futures settled 4¢ lower but rebounded after the closing bell.

US fluid milk sales in the August-October period were estimated at 13.62 billion lbs., down 0.5 per cent from a year ago, according to Federal Order and California state data. Year-todate sales were off 1.4 per cent, USDA says (see chart).

California Class one prices for January are $19.88 in the north and $20.15 in the south, down 79¢ from December. Federal Order Class I prices come out Friday, 23 December.

USDA kept its US corn production and use forecast generally intact this month, projecting 2012 carryout stocks of 848 million bushels, down 25 per cent from this year and just 6.7 per cent of expected use. However, overseas corn production is expected to jump by 43.4 million tons next year (+8.5 per cent), led by large gains from China and Ukraine, the department said in its monthly “World Agricultural Supply & Demand Estimates” report.

MAR12 corn futures settled at $5.94/bushel today, down about $2 from late August. In the same report, USDA projected the All-Milk price to average $18.10-$18.90 next year, down about $1.60 from this year’s record payout

Further Reading

- You can view the full report by clicking here.

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