Friday, June 12, 2015

 

‘Missing’ Milkfat

The CME spot butter price hit a new record high in 2014, and due to environmental factors effecting milk production, the US market is turning out just as tight again in 2015 — contributing to a wonderfully bullish story. But, there is a big problem with the story, and that is there’s a record amount of milkfat going missing. The percentage of unaccounted for milkfat has been relatively stable over time, until it jumped higher in 2013, and again in 2014. In “‘Missing’ Milkfat,” Nathaniel Donnay, Senior Dairy Analyst – Informa Economics attempts to account for all of the milkfat (and protein) between farm production and finished dairy products, and provides market insight into world butter pricing.

Read the full study here.

From the June 2015 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.

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