CME Group



Daily Cash Trading on Tuesday, March, 25, 2014

















Dairy consumer, producer price forecasts

USDA’s Economic Research Service forecasts consumer dairy product prices will rise 2.5%-3.5% in 2014, about the same as the anticipated increase for all foods either consumed at or away from home.

The Consumer Price Index (CPI) for food measures the average change over time in the prices paid by urban consumers for a representative market basket of consumer goods and services. Dairy product prices rose just 0.1% in 2013, after increasing 2.1% in 2012.

February 2014 dairy product prices rose 0.7% from January 2014, and 0.6% compared to February 2013.

ERS also analyzes and models forecasts for the Producer Price Index (PPI), the average change in prices paid to domestic producers for their output. According to latest PPI projections, 2014 farm-level milk prices are expected to rise 5.0% -6.0%, after increasing 7.5% in 2013. February 2014 farm-level prices rose 6.5% compared to January 2014 and were up 26.6% compared to February 2013.

Wholesale dairy prices are projected to increase 4.0% to 5.0% in 2014, after increasing 3.5% in 2013. February 2014 wholesale prices rose 4.1% compared to January 2014 and were up 12.0% compared to February 2013.

In 2012, farm-level milk prices declined 8.1%, while wholesale prices dipped 1.6%.


CWT assists with 3.6 million lbs. of cheese, butter, WMP export sales

Cooperatives Working Together (CWT) accepted 15 requests for export assistance from Dairy Farmers of America, Foremost Farms USA, Maryland & Virginia Milk Producers Cooperative Association, Michigan Milk Producers Association and Tillamook County Creamery Association to sell 2.094 million lbs. of cheddar cheese, 1.185 million lbs. of 82% butter and 308,647 lbs. of whole milk powder to customers in Africa, Asia, Central America, the Middle East and North Africa. The product will be delivered March through August 2014.

Year-to-date, CWT has assisted member cooperatives in selling 29.299 million lbs. of cheese, 15.495 million lbs. of butter and 2.881 million lbs. of whole milk powder to 21 countries on five continents. These sales are the equivalent of 619.5 million lbs. of milk on a milkfat basis.


Webinar to focus on key USDA reports

Farmers and agribusiness managers who want to understand the implications of USDA’s Grain Stocks and Prospective Plantings reports, released on March 31, are invited to participate in a free webinar hosted by the Purdue Center for Commercial Agriculture. The webinar, "Implications of the March 31 USDA Reports" will be April 1 from noon to 1:30 p.m. (EDT).

Presenters are Purdue Extension agricultural economists Chris Hurt and Corinne Alexander. Jim Mintert, professor of agricultural economics and assistant director of Purdue Extension, will serve as a moderator.

"The Grain Stocks report will help market participants understand the level of grain use so far this marketing year," Hurt said. The Prospective Plantings report is the first indication of which crops U.S. farmers intend to plant this spring. It provides the first peak into potential grain supplies for 2014 crops.

The webinar will include Hurt and Alexander's outlook for grain prices based on the reports. They also will offer grain-marketing strategies for producers to manage the price risks they will face.

Participants can find more information and register for the webinar on Purdue's Center for Commercial Agriculture website at

The report itself will be available March 31 at noon on USDA's National Agricultural Statistics Service website at


CIH to host ‘Margin Management for Lenders’  seminar

CIH, LLC will host a “Margin Management for Lenders”  seminar on May 28 & 29, 8:30 a.m.-4:30 p.m. both days, in Chicago, Ill.

This program is designed to help bankers better understand the risk associated with lending to agricultural producers looking to protect profit margins in their business. Appropriate for credit analysts as well as loan officers and upper management, this comprehensive two-day seminar encompasses a broad range of topics. These include a fundamental background of the futures market, including the clearing and margining process to position structure and management with various futures and options combinations and their cash flow implications. Reconciling derivative positions with physical contracts and understanding net exposure will be discussed to help better evaluate if hedge positions are truly reducing risk in the cash market.

A tour of the CME Group’s visitor center overlooking the trading floor at the Chicago Board of Trade building is included.

Cost is $95/person. Registration fee includes continental breakfast, lunch, dinner reception the first night and all seminar materials. Register Online or call 866-299-9333.