Mineral Wells Index, Mineral Wells, TX

Online Only

October 10, 2012

Rising feed cost seen driving milk production down

CHICAGO — U.S. milk production is headed for the biggest contraction in 12 years as a drought-fueled surge in feed costs drives more cows to slaughter.

Output will drop 0.5 percent to 198.9 billion pounds (90.2 million metric tons) in 2013 as the herd shrinks to an eight- year low, the U.S. Department of Agriculture estimates. Milk futures rose 45 percent since mid-April and may advance at least another 18 percent to a record $25 per 100 pounds by June, said Shawn Hackett. The president of Boynton Beach, Fla.-based Hackett Financial Advisers Inc. correctly predicted the rally in March.

Dairies in California, the top milk-producing state, are filing for bankruptcy, and cows are being slaughtered at the fastest rate in more than a quarter century. Corn surged to a record in August as the USDA forecast the smallest crop in six years because of drought across the U.S. Global dairy prices tracked by the United Nations rose 6.9 percent last month, the most among the five food groups monitored, and that will probably mean record costs next year, Rabobank estimates.

"Farmers can't afford to buy as much grain and protein, and that affects milk production," said Bob Cropp, an economist at the University of Wisconsin in Madison who has been following the industry since 1966. "In California, there've been some foreclosures and some sell-off of cows quite heavily. You're going to see that in other parts of the country."

Class III milk, used to make cheese, jumped 22 percent to $21.10 on the Chicago Mercantile Exchange this year. That's more than 21 of the 24 commodities in the Standard & Poor's GSCI Spot Index, which rose 2.2 percent. The MSCI All-Country World Index of equities climbed 12 percent, and Treasuries returned 1.8 percent, a Bank of America Corp. index shows.

The global dairy market is facing a scarcity of supply in the next 12 months as output slows in the United States and Europe and demand keeps expanding, Rabobank said in a Sept. 27 report. Surplus milk available for shipment from the seven biggest exporting regions will decline for the first time in four years, and there is little excess inventory, the bank's team of 11 dairy analysts estimate.

Text Only
Online Only
  • touch.jpg Divorce is on the rise, and it's the baby boomers' fault

    A new paper from demographers at the University of Minnesota found that the age-standardized divorce rate has actually risen by an astonishing 40 percent since 1980.

    March 29, 2014 1 Photo

  • barbour021614.jpg No shows escaped death by Craigslist killer

    The young woman who says she was driven by satanic spirts to commit a cross-country murder spree over the last six years says authorities are not taking her claims seriously and that she tried to lured other central Pennslyvania men into her death snare with online companionship ads but they didn't show up.

    March 29, 2014 1 Photo 2 Stories

  • firefighters.jpg VIDEO: Firefighters sing song from 'Frozen' to calm girl stuck in elevator

    Firefighters in Reading, Mass., sing the Disney power ballad known by children everywhere -- "Let It Go" -- to calm a 4-year-old stuck in an elevator.

    March 29, 2014 1 Photo

  • dog-sunglasses.jpg Do animals have a sense of humor?

    Right now, in a high-security research lab at Northwestern University's Falk Center for Molecular Therapeutics, scientists are tickling rats. Their goal? To develop a pharmaceutical-grade happiness pill. But their efforts might also produce some of the best evidence yet that humor isn't something experienced exclusively by human beings.

    March 29, 2014 1 Photo

  • taylor.armerding.jpg Put teens to work by laying off minimum wage rhetoric

    Idle teen workers may be a national problem, but frugal private employers aren't the reason for it. Minimum wage hikes - like the one championed by President Obama - squeeze these marginal jobs out of the economy.
     

    March 29, 2014 1 Photo

  • Screen Shot 2014-03-27 at 2.40.34 PM.png VIDEO: Would-be carjacker stymied by stick shift

    A man ordered a mother and her son out of their SUV at gunpoint in an Omaha neighborhood, but was forced to flee on foot, police said, because he didn’t know how to drive a stick shift.

    March 27, 2014 1 Photo

  • news_zuckerberg.jpg The logic of Facebook's multibillion-dollar shopping spree

    Yet again, Facebook has spent a gaudy sum of money to buy a hot startup. This time, it's virtual reality pioneer Oculus VR, at a purchase price of $2 billion. And don't be surprised if Mark Zuckerberg continues on his buying spree.

    March 27, 2014 1 Photo

  • Newborn.JPG Census: U.S. has fewest births since 1998

    The U.S. recorded the most deaths in its history and the fewest births since 1998, resulting in the lowest population gain from natural causes in 35 years, an analysis of 2013 Census Bureau estimates released Thursday shows.

    March 27, 2014 1 Photo

  • news_mudslide.jpg Mudslide region deals with 'mind-numbing' disaster

    As hundreds of workers spent a fifth day digging through debris and wreckage, the death toll increased to 16 and was expected to keep rising; worse, no survivors have been found since Saturday, the day the landslide hit.

    March 27, 2014 1 Photo

  • sleeping-woman2.jpg 8 million people take prescription sleep aids, but these drugs have risks

    About 8 million adults turn to prescription sleeping pills for help every month, according to a study published last year by the Centers for Disease Control and Prevention. And yet, one specialist warns, these medications all have flaws.

    March 26, 2014 1 Photo

Featured Ads
Mineral Wells Index


Click on a photo to visit our SmugMug page

Front page
Seasonal Content
AP Video
Raw: Royal Couple Visits Australia Mountains Raw: Pro-Russian Militants Killed on Base Captain of Sunken South Korean Ferry Apologizes Boston Bombing Survivors One Year Later Sister of Slain MIT Officer Reflects on Bombing Raw: Blast at Tennessee Ammunition Plant Kills 1 Hoax Bomb Raises Anxiety in Boston Egypt Clamps Down on Mosques to Control Message After Fukushima, Japan Eyes Solar Power New York Auto Show Highlights Latest in Car Tech Ex-California City Leader Gets 12 Year Sentence Disbanding Muslim Surveillance Draws Praise Hundreds Missing After South Korean Ferry Sinks Passengers Abuzz After Plane Hits Swarm of Bees Town, Victims Remember Texas Blast At Boston Marathon, a Chance to Finally Finish Are School Dress Codes Too Strict?
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Stocks
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Must Read