Sunday, December 13, 2009
(click on images to enlarge)
Despite endless talk about supply and demand, Washington, DC turned over 100% of milk pricing power to the buyers of milk with the elimination of parity in the early 80s.
Whether prices go up or down, since that time, some number is dredged up to justify the change.
As both the table and chart above demonstrate, the common belief is not received wisdom, it is a work of fiction.
Accuracy in reported numbers is desirable, but, the real problem lies with the gang at the CME and USDA's willing to give credence by way of the NASS survey and the dairy farm milk pricing formulas.