CovOps
Location : Ether-Sphere Job/hobbies : Irrationality Exterminator Humor : Über Serious
| Subject: Funny: Milk futures: Better than gold Thu Jan 05, 2012 1:33 am | |
| The commodity which enjoyed the biggest gain in price last year can be answered with a simple question: Got milk?
That's because milk, not gold, oil, or any of the more popular futures contracts, enjoyed about a 35.7% rise in price in 2011 to close at 18.77 cents per pound.
That compares to an 11.7% rise in the price of gold and a 10% rise in crude oil prices. It also blows away the more modest gains of the higher profile food futures, like pork bellies, corn and coffee.
But before you rush out to the nearest grocery store to buy every drop of milk in an effort to build your retirement nest egg, a clarification: Milk futures are not for the type of milk consumers bring home in gallon jugs. They're for a class of milk that is typically powdered or condensed and used in production of other products such as cheese. That class of milk makes up just more than half of the 195 billion pounds of milk produced in the United States annually.
The price of liquid milk bought by consumers has so far been spared these price shocks. Still, the Consumer Price Index shows a 9.8% rise in liquid milk prices over the 12 months ending in November. Investors fleeing gold
One of the main factors driving the rise in milk futures on commodity markets is a rise in export demand.
Because of its perishable nature, liquid milk is not widely exported. But the Census Bureau reports that condensed or powered milk exports surged 26% in the first 10 months of 2011, the latest figures available, to $1.3 billion.
http://money.cnn.com/2012/01/04/markets/milk_futures/index.htm?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_latest+%28Latest+News%29 |
|