Tuesday, April 20, 2010
DFA/CME And the Winners Are?
(click on images to enlarge)
We really know nothing about the amounts the individual players made in the shenanigans DFA and associate made in 2004, manipulating the CME. We do know that DFA claimed to have helped dairy farmers.
Dairy farmers receive a blend price based on utilization. Actually, it is the blend priced based on "pooled" utilization in the Federal Orders. As can be seen in the above table from Federal Order One,the class three (cheese) milk was not pooled - which is also known as depooling.
However, the CME is also used to set wholesale prices and ultimately, retail prices. As can be seen from the above graph, the American public were the big losers.
Farmers should ask USDA how much longer they will cooperate, by way of the farm milk pricing formulas, with the plunder?
Perhaps it is time for consumer groups to ask the same question.