Friday, August 21, 2009

Buttered Slope

(click on image to enlarge)

From the CME Dairy Report:

• Commercial butter stocks increased slightly in July as well, expanding by 1.1 million lbs. to 264.0 million lbs., USDA says. This is the first time since 2004 that butter inventories have increased in July.

From Dairy Market News:

• BUTTER HIGHLIGHTS: The CME cash butter price trended lower
for much of the week, but gained 2 cents on Friday to close the week at
$1.1700. The current cash price is the lowest since early March and compares
to $1.6000 last year at this time and $1.3800 in 2007. The CME cash price
has not been this low, at this time of year, since 2003.

August 17 – 21, CCC net purchases totaled 0 pounds of nonfortified NDM
under the dairy price support program. Cumulative NDM purchases since
October 1, 2008 total 277,236,421 pounds.

Butter imports have remained steady this year. See the information from USDA above on “high-tier” imports.

There is also a group of dairy products which come into the U.S. at low tariff rates. A license is needed and DFA holds 12:

• Butter
• Dried Skim Milk
• Other Cheese NSPF (2)
• Blue mold cheese
• American (3)
• Edam & Gouda
• Italian type (2)
• Other cheese-lowfat


  1. I don't get the point.

  2. John,
    You might want to show how the butter imports really jumped in November and December of 2008 as compared to all of 2008. It was a massive jump.
    Are there two inventories of surplus? One that would show what our national surplus is and one that would show the surplus of imported items? Or do they just lump the two together?

  3. If your information is correct, and it seems everyday there is some new evidence of foul play with numbers or reshuffling of milk to keep farm prices in the tank, shouldn't we be looking for more news coverage? Any ideas how to do that. Also, perhaps we should agressively seek legal help to sue those involved. Your comments?

  4. Actually, there have been quite a few legal cases in the past few years. After the CFTC, on December 16, 2008 released information on DFA's manipulation of the CME at least five suits were filed.