Today, Jerome, naturally, continued to drive both block and barrel down.
Oddly, butter rose to $1.56 a pound (blocks are $1.4325/lb.). Dairygold sold the butter and Schreiber bought all the loads.
Schreiber is a huge company (6000 employees)which mainly focuses on cheese. That is not to say Schreiber has no interest in butter. Schreiber is a world player, with a plant in India (How interesting).
Needless to say the world price for butter is just under $1.80/lb when adjusted to 80% bf.
Although there is little future in running the price of cheese down, and Schreiber is a common player in that process, Schreiber may be considering the future (not futures)regarding supply of cream.
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It makes sense. Butter will be tight and cheese is pilling up everywhere. Jerome wants to unload now before it gets worse. I know it sucks for all of us but they are looking out for their interests. Darigold (which is the correct spelling)
ReplyDeleteWhere can we find out who bought/sold on CME?
ReplyDeleteSo Jerome just has to make a lower offer to sell knowing there won't be a buyer to lower the milk price.
ReplyDeleteI've heard you mention Jerome as a player in this scheming before. Are they so big that they can do this and still fly under the radar? I also saw another reader of yours that said they thought the price could go up until Jerome decided to drive it back down. Is one company capable of this, and do you think that is what's going on?
ReplyDeleteDoesn't 15 or 16 million pounds a week of NFDM sales in California create a lot of cream? Not to mention selling that NFDM at an average of $.20 below the CME and more than that below the world market. So they get the high cream sale price at the expense of the low NFDM price?
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