10-03-2014 01:44 AM | USA

Drought drives dairy higher

Milk futures are near an all-time high as California suffers through a severe drought that is threatening dairy production.

Although many Americans think of Wisconsin as the center of U.S. dairy, California actually produces the most milk. Other major producing states like Idaho, Texas and New Mexico are also seeing their pastureland dried out, which reduces cows’ ability to produce milk.

As a result of lower production outlooks, milk futures have risen 40 percent in the last six months. As of midday Friday, the most commonly traded dairy contract, Class III milk for delivery in March, was trading for 22.73 cents per pound, a record high.
Full Story : Helena Independent Record