Tuesday, April 6, 2010
(click on image to enlarge)
Note: a metric ton equals 2204.6 pounds.
Today Fonterra held its latest Internet auction known as globalDairyTrade. Fonterra's first auction was held in July 2008. The latest results are encouraging.
All prices were up. Anhydrous milkfat increased 21.9% to close at $2.19 a pound. Skim milk powder (SMP) was up 25.5% to close at average price of $1.67 per pound. SMP is essentially the same as nonfat dry milk powder (NFDM), except that SMP has a specific protein level, whereas NFDM is manufactured to a moisture standard.
Note should be taken that on the same day Grade A NFDM closed at the Chicago Mercantile Exchange (CME) for $1.23 a pound - 26.3% less than Fonterra's auction.
Whole milk powder (WMP) settled up 21% higher, at $1.80 per pound.
The latest Dairy Market News International report, dated April 1, 2010 priced Oceania Cheddar at an average price of $1.75 per pound, with a high range of $1.86 per pound. Block Cheddar clothes on April 6, 2010 at $1.48 per pound on the CME.
There is something very wrong with dairy trading at the CME.