On Friday, July 31, 2009 the Agricultural Prices report was released. According to the report, the parity price for July 2009 was $41.70. The “all milk” price was $11.30.
The average price “F.O.B.” was $10.70.
Commonly, F.O.B. means “free on board” and there never has been a situation when that was truer.
Farm milk index was 87, meaning it was 87% of the 1982-84 base period. June’s consumer price index for dairy products was 194.197 or nearly double the base 1982 – 84.
To date no one has used the term bi-polar market, however, this seems to be the case in dairy pricing. The question is, where can a couch large enough be found and who is going to dig up poor old Dr Freud to deal with the situation?
This week Dean Foods will have a second quarter report. My guess is it will be tempered by some clever book work.