Food prices are up. Grain prices are up. But milk prices are down. There is oversupply. Dairy herds are being slaughtered. It costs dairy farmers more than 50% higher price to produce milk than they are getting. The situation in some states is worse than others.
Against this backdrop we await some sort of government protectionism to prevent small dairy farmers from going out of business. The timing is such that help may arrive too late. An eventual soaring price of milk is seen as herds are slaughtered. Meanwhile retail stores appear to be drowning in milk, which cannot be stored or preserved for very long, unlike grains.
Something has to give, and sooner or later milk prices will rise. It appears help will be later. Congress muddles along in a non-sensical consideration of additional tax on chocolate milk, not to help the farmers, but as part of a national health plan to reduce obesity.
Our article on Milk is in the Archives Section below.
06-28-2009: July Milk: Dairy Farmers Going Under
06-23-2009: July Silver: Money Supply Emphasis
06-16-2009: September Euro Currency: Some Member States Hamper
06-12-2009: July Cotton: Awaits New Impetus
06-05-2009: August Lean Hogs: Expensive to Produce Even Under Intolerable Conditions
05-31-2009: June Japanese Yen: Lessons from the Past
05-25-2009: June U.S. Dollar Index: No Brainers Everywhere
05-23-2009: July Oats: Exports on the Rise
05-11-2009: June Nasdaq 100 Index: No Longer a Bargain
05-11-2009: July Copper: Supply Side Management
05-07-2009: July Cocoa: Optimism Versus Reality
05-03-2009: August Natural Gas: More Efficient Production
05-01-2009: July Coffee: Ending Stocks Up, Production Down
04-20-2009: July World Sugar #11: India Holds Key
04-14-2009: June British Pound: How Bad in the U.S. Determines
04-06-2009: July Chicago Wheat: Less Sympathy, More Merit
04-03-2009: July Soybean Meal: Exports and Weather Support
03-30-2009: June Canadian Dollar: Lower Interest for Failing Economy
03-25-2009: June Treasury Bonds: Endless Supply
03-21-2009: May Rough Rice: Export Restrictions
Updated once a week (usually on Saturdays.)
Buy and sell prices are averaged where multiple contracts are involved, which is why they may not fall on an exchange tick increment.
This completes Zenith's Second Quarter. Next week we will zero out cumulative totals and begin the Third Quarter.
# Commodity BS Buy Sell Last Gain Intended Rough Group
(Loss) Risk Percent
2 Sep British Pound C 164.00 164.63 165.27 $ 728 13,750 28.9% Currency
4 Sep Canadian Dollar C 86.70 86.95 86.81 $ 880 9,800 28.9% Currency
5 Jul Cotton #2 S 53.01 52.54 $ 1,025 10,750 5.0% Cotton
6 Sep U.S.Dollar Index C 80.22 80.97 80.13 $ 4,320 12,720 28.9% Currency
2 Sep Euro Currency C 138.53 139.44 140.75 $ 2,215 11,400 28.9% Currency
2 Dec Gold C 947.20 930.00 943.70 $ -3,500 1,460 11.8% Prec Met
1 Jul Hi Grade Copper C 222.80 215.70 229.40 $ -1,805 1,775 0.8% Copper
3 Sep Japanese Yen C 104.72 105.01 105.15 $ 998 14,775 28.9% Currency
3 Jul Coffee "C" L 115.50 116.80 $ 1,373 11,138 5.2% Coffee
12 Aug Lean Hogs C 57.83 61.85 57.70 $ 18,936 13,680 6.3% Pork
3 Sep NASDAQ 100 E-Min C 141.60 147.70 147.70 $ 3,570 11,580 5.4% Stock Id
7 Aug Natural Gas Mini C 3.91 4.10 4.10 $ 3,115 12,075 5.6% Nat Gas
11 Jul Oats C 201.60 208.40 209.20 $ 3,410 9,900 9.7% Grains
4 Sep Palladium C 234.80 247.20 247.20 $ 4,840 14,800 11.8% Prec Met
6 Jul Rough Rice C 121.18 125.00 121.30 $ 4,404 11,016 9.7% Grains
11 Jul Sugar #11 World C 14.76 16.62 16.26 $ 22,585 14,414 6.7% Sugar
1 Jul Silver C 13.74 14.13 14.13 $ 1,920 9,200 11.8% Prec Met
5 Jul Soybean Meal C 378.50 405.30 405.00 $ 13,250 9,150 4.2% Soys
3 Sep Treasury Bonds C 116.21 118.15 118.53 $ 5,730 12,750 5.9% Finance
2 Jul Chicago Wheat L 532.10 534.20 $ 150 9,710 4.5% Wheat
Adjustment for Open Positions: -($ 2,548)
Prior to 6/22:
Other Gains/-Losses This Reporting Period: $ 852,653 ***
*** For Contracts Closed or Rolled Forward __________
Total for all Trades: $ 938,248
Trading in commodities involves substantial risk and past performance is no guarantee of future profits. Zenith does not sell advice nor does it manage discretionary accounts other than its own. Readers should be aware of the vested interest that all traders/brokers have in encouraging other traders to make the same transactions. No one should follow investment advice blindly. This web site should be used only as a "sounding board" for confirming one's own opinion. Any suggested order placements should be reviewed and reset to fit current market conditions by individual traders.Recommendations may include trades which have already been made on the same or a previous day, otherwise the issue is placed on a "watch list." Suggested trades are based upon an approximate maximum $15,000 capitalization requirement per trade, depending upon initial contract margin requirements. Zenith's actual trades may be larger. $22 per round turn for futures is deducted from profit figures. Commodity option trade recommendations are not tracked, but performance should parallel that of the underlying commodity's.
