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CME: Retail Milk Prices Up For 12 Straight Months

21 October 2011

US - Dairy futures traded mixed after yesterday’s “Milk Production” report, which showed output up 1.7 per cent in September, writes Alan Levitt.

Cow numbers have steadied at 9.209 million head after rising for most of 2010 and the first half of 2011 (see chart).

In the third quarter, herd expansion took place in California, Texas, Washington and Idaho, but this was offset by contraction in Iowa, Pennsylvania and Georgia.

The cheese market remains choppy, lacking any clear direction. Blocks held steady today but barrels fell 2.5¢. Spot butter settled at $1.86 for the third straight day.

The NDM market continues to weaken and whey markets are showing signs of topping out, according to Dairy Market News’ weekly survey. Western NDM is pegged at mostly $1.40- $1.49, down 1.25¢ from last week.

Western whey is mostly 62.25¢-63.75¢, down threequarters of a cent, DMN says, the first pull-back in price since mid-May.

Prices had increased 22 weeks in a row. The domestic whey market remains tight but export prices are lower. Retail milk prices increased for the 12th straight month in September.

The Milk CPI was 151.0, up 13.1 per cent from a year ago, according to the Bureau of Labour Statistics.

The Cheese CPI jumped nearly two per cent in September to a record high 227.1, and now sits 10.2 per cent above a year ago.

Further Reading

- You can view the full report by clicking here.


Daily Dairy Report - Copyright © 2008 CME. All rights reserved.


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