## Wednesday, September 2, 2009

### Definition Needed

Fonterra’s latest internet auction for whole milk powder saw the average price rise 24%. This is on the heels of a 25% increase last month. This just completed auction announced today averaged $1.30 per pound. Dairy Market News international price reports indicate a smaller spread between skim milk powder and whole milk powder than one might think – about$0.045/ pound.

Therefore the sale of NFDM to the CCC for $0.92/ pound has overnight become more curious. Today’s CME spot block Cheddar price fell four and a half cents to close$0.005 more than Fonterra’s whole milk powder price.

Who ever thought of the term “price discovery” should be sought out and asked for a new definition. Additionally, what would be the definition of the activity on the CME?

1. From the Merriam-Webster dictionary:

* Main Entry: in·san·i·ty
* Pronunciation: \in-ˈsa-nə-tē\
* Function: noun
* Inflected Form(s): plural in·san·i·ties
* Date: 1590

1 : a deranged state of the mind usually occurring as a specific disorder (as schizophrenia)
2 : such unsoundness of mind or lack of understanding as prevents one from having the mental capacity required by law to enter into a particular relationship, status, or transaction or as removes one from criminal or civil responsibility
3 a : extreme folly or unreasonableness b : something utterly foolish or unreasonable

Personally I think that sums it up as good as anything.

2. My horse in this race is chicanery -n- "adroit but dishonest maneuvering or scheming"... later. Nate Wilson

3. I've always said the CME cash exchange should take place in a jail cell!!!