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As someone once said predictions are dangerous, especially about the future. With prices rising on the CME – blocks are $1.35, and NFDM hit a dollar yesterday – the question which pops into everyone’s mind is where is this all leading?
One Cornell study says, “Although somewhat erratic, the cycles in milk price appears to have an underlying order.” Well, maybe but I don’t see it.
Plato said justice is the will of those in power. I would add prices on the CME are similarly the will of those in power. That of course, should change. Imbalances of power are eventually unstable.
John,
ReplyDeleteI smell a rat:this mysterious price gain on the CME is likely nothing more than Dean & Kraft pulling one of their classic "trading against their own interest" scams to head-off some bad press and chill some Congressional wrath! What better way to difuse the current situation's potential mischief than to make it appear that the market is coming around all on its own... promote the fiction the CME is a functioning market after all.
If they can bring farm price down on CME trades, they can reverse the process and push it up when it is in their interest to do so; after all, they've got our dough to work with... those bastards!!
Nate Wilson.
I agree with Nate
ReplyDeleteI think we all agree with Nate - except I think calling some of these folks bastards is being way too nice.
ReplyDeleteJeff
I second that
ReplyDelete