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Butter Offered Below $1.40

14 February 2012

US - Butter was offered 4¢ lower today without drawing a buyer off the sidelines. Today’s price settled below $1.40 for the first time in almost two years. A year ago the price was $2.0775 (see chart) . Butter futures, however, were mixed today, with second- quarter contracts settling at $1.5483, writes Alan Levitt.

California Class 1 prices are $17.60 in the north and $17.87 in the south, down 92¢ from February. Federal Order Class I prices for March come out Friday, Feb. 17.

NMPF currently estimates that MILC payments will begin with February milk.

Tomorrow is the deadline for farmers to submit the necessary paperwork with their local FSA office to select March as their starting month. Based on futures prices from Feb. 9, NMPF projects an MILC payment of 27¢/cwt. in February, rising to near 80¢ in April and May. Payments are estimated to continue through August. In September the feed-price trigger increases from $7.35 to $9.50; at this point NMPF does not expect a payment for September. The MILC program, which was authorized by the 2008 Farm Bill, expires Sept. 30, 2012.

Holiday schedule: CME Group will be closed next Monday, Feb. 20, in observance of Presidents’ Day. Regular trading will take place on Friday. Globex trading for dairy will resume at 5pmCT on Monday for Tuesday’s trade date.



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