The Clinton Herald, Clinton, Iowa

Top News

October 11, 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
Top News
  • AGENDA: 4-22-14 Clinton City Council

    The Clinton City Council will meet Tuesday at 7 p.m. followed by a committee of the whole.

    April 18, 2014

  • Judge asks pointed questions in gay marriage case

    A judge in Colorado who will play a pivotal role deciding whether gays should be allowed to wed in the United States asked pointed questions Thursday about whether Oklahoma can legally ban the unions.

    U.S. Circuit Judge Jerome Holmes is seen as the swing vote on the three-judge panel that heard the Oklahoma appeal and a similar case from Utah last week.

    April 18, 2014

  • NASA's moon-orbiting robot crashes down as planned

    April 18, 2014

  • Eyewitness testimony no longer a gold standard

    The American legal system offers few moments as dramatic as an eyewitness to a crime pointing his finger across a crowded courtroom at a defendant.

    The problem is that decades of studies show eyewitness testimony is only right about half the time — a reality that has prompted a small vanguard of police chiefs, courts and lawmakers to toughen laws governing the handling of eyewitnesses and their accounts of crimes.

    April 18, 2014

  • Blagojevich campaign account donates final dollars

    A federal campaign account for imprisoned former Illinois Gov. Rod Blagojevich is now empty, two years into the Chicago Democrat's prison term.

    The (Arlington Heights) Daily Herald reports Friends of Rod Blagojevich donated $709.85 to a Serbian Orthodox Church monastery earlier this month.

    April 18, 2014

  • GOP lawmaker objects to 9-0 vote for Obama library

    A Republican lawmaker is protesting after an Illinois House committee recorded a 9-0 vote to commit $100 million for President Barack Obama's library and museum, even though the committee's four GOP members weren't there.

    Rep. Ed Sullivan of Mundelein says he didn't expect a vote during Thursday's hearing. He told WBEZ radio and the (Arlington Heights) Daily Herald he would've voted no.

    Sullivan says "the legacy of the Obama presidential library shouldn't be kicked off in a cloud of controversy."

    April 18, 2014

  • Prosecutor says 6 felon voting cases will proceed

    A prosecutor pursuing several cases against felons charged with voting illegally says an Iowa Supreme Court ruling shouldn't impact them.Assistant Black Hawk County Attorney Linda Fangman said Thursday the prosecutions will "proceed as is," despite Tuesday's ruling suggesting that not all felons lose their voting rights. She's handling felony election misconduct cases against six offenders accused of voting in the 2012 election even though they lost their rights. A seventh may plead guilty Monday.

    April 18, 2014

  • Iowa's unemployment rate climbs to 4.5 percent

    Iowa's unemployment rate climbed to 4.5 percent in March as more people entered the labor force.

    Iowa Workforce Development announced Friday the rate was up from 4.4 percent in February. It compared to a 4.8 percent unemployment rate in March 2013.

    April 18, 2014

  • Magnitude-7.2 earthquake shakes Mexican capital

    A powerful magnitude-7.2 earthquake shook central and southern Mexico on Friday, sending panicked people into the streets, where broken windows and debris fell, but there were no early reports of major damage or casualties.

    The U.S. Geological Survey said it was centered northwest of the Pacific resort of Acapulco, where many Mexicans are vacationing for the Easter holiday.

    April 18, 2014

  • Letter to the Editor: Local firefighters' union speaks out on proposed contract

    Dear citizens/taxpayers of Clinton:
    The members of Local 609 feel that it is our duty to inform the citizens of Clinton that the article titled “‘Fair offer’ differences” in the April 9, 2014 edition of the Clinton Herald was full of inaccurate statements regarding our negotiated contract proposal with the city. These incorrect statements could impact the use of your city funds negatively and unduly influence our elected representatives. So, we would like to address these points, as follows:

    April 18, 2014

AP Video