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?