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!!!