Tuesday, March 9, 2010

Prices

Cheese prices moved down again today on the CME. Jerome Cheese and Kraft Foods where the sellers.

Dairy pundits have had to revise several times where the supposed the floor for cheese pricing would be found. However, the aspect to watch is probably the volume of futures. Would it be possible for a large company to drive down the cash market and then take positions on the futures market which will then cover their needs for 2010? I think so.

On the other hand butter is rising, probably in anticipation of a higher selling price to build market needs for the Easter season. Butter then may moved down when the seasons needs are sold.

In the meantime just imagine that you are a bank. Just when you thought farm milk prices were going to rise they start to fall again. Will the banks see the shenanigans on the CME as a signal to cut their losses?

8 comments:

  1. "In the meantime just imagine that you are a bank. Just when you thought farm milk prices were going to rise they start to fall again. Will the banks see the shenanigans on the CME as a signal to cut their losses? "

    Differentially, YES!!

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  2. already hearing some rumblings of that happening soon

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  3. What is your thought on the ballot on changing the rules for producer/handlers participating in the pool? We got a ballot the other day, but haven't sent it back yet.

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  4. since product never really changes hands on the CME, why dont we as farmers "pool" our money (cwt$?) and purchase product at world markets prices? if they cany artifically deflate the price why cant we artifically inflate the price? i know i know, you are thinking "dfa kind of did that" not really though, not on this scale. since corruption runs rampant on the other side of the table, why do we play fair? its like fighting a war and not shooting bullets... just doesnt make sense does it?

    cwt money is dairy farmers money. use it to help us. its time for the revolution to start. we are only a year late... better late than never.
    "think outside the box" that normally means dump milk. not opposed, but lets fight fire with fire. need to be creative, precise and calculating.
    be in charge of your own destiny
    Jake Jones

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  5. The banks are preparing to cut their losses. Two dairy counties in Pa. have 35 dairy farmers committed to selling herds as soon as cattle prices recover to a certain point. Our lawmakers are fiddling.

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  6. Can you imagine two big milk buyers selling low to get the milk price down? Is there no end to manipulation? We in California are looking at $10.00 milk again.

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  7. We could do it ourselves, after last year alot of us would probably qualify for food stamps. We could use that money to buy colby and cheddar cheese at the stores, then turn around and donate it to the Rescue Mission, Food pantries or just anyone we think needs it. We create demand, move product through the system, and help people who need it. win-win-win too simple I know but its no worse an idea than some of the crap nmpf came up with. DWCovert

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  8. CWT gives $100,000 to Haiti instead of buying cheap NFDM and sending powder over that they could actually use! Really really smart!!!

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