McAlester News-Capital, McAlester, OK

Local News

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 | Photo Reprints
Local News
  • 07 30 SOUTH AVE 1.jpg 'Road Closed' means just that

    No road.
    No kidding.
    For months, signs placed along South Avenue and Country Club Road read “Road Closed Ahead” — although the roads were still open.

    Now though, the “Road Closed Ahead” signs on South Avenue, along with those on Country Club Road and Peaceable Road, mean exactly what they say.

    July 30, 2014 1 Photo

  • Square logo.jpg City extends 17th Street construction deadline to mid-September

    A Stillwater company working on the Seventeenth Street Capital Improvement Project for the city of McAlester now has until mid-September to complete the job.

    July 29, 2014 1 Photo

  • Devin Mitchell McAlester man facing rape charges has hearing date set

    A preliminary hearing date has been set for a man who is facing charges of rape in the first degree (victim under age 14) and sodomy, victim under the age of 16.

    July 29, 2014 1 Photo

  • comish County to decide on liquor sales

    They’re ready to give the voters a shot.

    July 29, 2014 1 Photo

  • comish Election set to decide Sunday sales of liquor by the drink

    They’re ready to give the voters a shot.
    Pittsburg County commissioners have called a Nov. 4 Special Election date for voters to decide if they want to approve the sale of liquor by the drink on Sundays.

    July 29, 2014 1 Photo

  • Randy Green Judge rules in Green case

    A Pittsburg County judge has ruled the city of McAlester acted improperly in amending former City Manager Randy Green’s retirement plan to eliminate an “additional benefit” of $1,764.49.

    July 29, 2014 1 Photo

  • Road closed ROAD CLOSED

    July 29, 2014 1 Photo

  • mhrc Okla. State student observing at MRHC

    An Oklahoma State University student is observing at McAlester Regional Health Center as part of the rural medicine track offered at the university.

    July 29, 2014 1 Photo

  • CHRIS-MORRIS-2.jpg Detective's Dispatch

    The McAlester Police Department responds to domestic violence calls on a daily basis. Many times when our officers arrive, we get very little cooperation.

    July 28, 2014 1 Photo

  • lungdoctor.png Hospital hires lung specialist

    McAlester has a new lung doctor, the first since 2008.

    July 28, 2014 1 Photo

Seasonal Content
AP Video
Raw: Japanese Soldiers Storm Beach in Exercises Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA Two Women Narrowly Avoid Being Hit by Train In Virginia, the Rise of a New Space Coast New Sanctions on Key Sectors of Russian Economy Crayola Announces Family Attraction in Orlando US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue
NDN Video
Weird 'Wakudoki' Dance Launches Promotional Competition Sadie Doesn't Want Her Brother to Grow Up Chapter Two: Designing for Naomi Watts Broken Water Main Floods UCLA "Maxim" Hotness! See Jessica Alba's Sizzling Spread Two women barely avoid being hit by train Orlando Bloom and Justin Bieber Reportedly Came To Blows In Ibiza Meet the Man Behind Dumb Starbucks Chris Pratt Adorably Surprises Kids at a 'Guardians of the Galaxy' Screening NOW TRENDING: Peyton Manning dancing at practice "The Bachelorette" Makes Her Decision Thieves pick the wrong gas station to rob Golden Sisters on '50 Shades' trailer: 'Look At That Chest!' Staten Island Man's Emotional Dunk Over NYPD Car - @TheBuzzeronFOX GMA: Dog passes out from excitment to see owner Baseball Hall of Famers Inducted 'Hunger Games: Mockingjay Part 1' Sneak Peek Florida Keys Webcam Captures Turtles Hatching Morgan Freeman Sucks Down Helium on 'Tonight Show' Robin Wright Can Dance! (WATCH)
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.