CME: 2011 December Class III - $18.77
US - The December Class III price was $18.77, down 30¢ from November, writes Alan Levitt.
3 January 2012
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¢).
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