Today, August 10, 2009 Grade A NFDM price rose on the CME to $.99 a pound. Of course, no loads were traded. No loads of NFDM, for all practical purposes, are ever traded on the CME.
Nevertheless, as with the case of cheese, the NASS survey will eventually track after the CME.
NFDM is a residual product. As of the end of last week NFDM was still going to the CCC – albeit in much reduced amounts.
Cheese is up to $1.31/ pounds for 40 pound blocks.
Schools in the Southeast are back in session, and will soon be all over the country.
The talk is, milk supplies are already getting tight in many parts of the country.
The recent Fonterra internet auction of whole milk powder jumping 25% has driven the Kiwi, the NZ dollar up against the U.S. dollar. Therefore, unless something changes, imports will be more costly.
Predicting is a dangerous business but, it does seem that may, just maybe, dairy prices have hit the bottom and are going to climb.