March 27, 2008

US milk futures up amid higher feed costs
 

Milk futures in US electronic trading had double-digit growth and contract highs in some deferred months early Wednesday, as higher feed costs reduced milk supplies, traders said.

As corn prices reach all-time highs, some producers may trim their dairy herds, according to traders.

Traders expect continued strong export demand for dairy products amid a weak US dollar which makes US commodities more affordable for foreign buyers.

April futures was up US$0.07 at US$16.90 and May increase US$0.09 at US$17.11.