(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.
You don't say?
ReplyDeleteRobeet Lieb
What is lacking at CME is accountability!
ReplyDeleteSteve Barton
The good news is the cheese giants have'nt dumped for a couple of weeks. The bad news is they're probably going to now that the price is going up.
ReplyDeleteSomething just popped into my head, is there any verification method as to whether product actually changes hands on the exchange? What I'm saying is can company A "offer" product that doesn't even exist, then company B "buys" it for whatever price, setting the market, but then delivery never actually takes place? I mean this is all in a room in Chicago not like its at a warehouse in Idaho where they can make payment load the truck and go home with it.DWCovert
ReplyDelete