Wednesday, February 17, 2010
(click on image to enlarge)
We are programed to think in terms of supply/demand. Transactions, particularly globally, can be affected by many things outside of supply/demand.
For a significant part of 2007 and for the first ten months of 2008 we were exporting NFDM/SMP at record levels.
If you look at the above graph, you could pick, without knowing anything else, when dairy powder exports were going to disappear.
As long as the U.S. dollar remains the worlds reserve currency, world trade in dairy is very risky.