Friday, June 18, 2010

Butter

Dairy Market News is reporting cream prices are high. Ordinarily, cream is sold in multiples of the CME butter price. The brokers I have spoken with say it is in the 1.5 to 1.6 range.

There are several reasons for cream to be short, including butter exports. However, butter fat test in all the federal orders are lower this year. Protein is also slightly lower.

Probably, the biggest depressor of BF is shortage of energy - grain. So, is there something really wrong with the milk production numbers?

1 comment:

  1. It doesn't seem to add up, I know personally with changing rations ect we are not up 2 #'s per day, but why should they do it right now. When I am gone I will still root for the rest of you left. Its getting too late for many of us!

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