Friday, August 13, 2010
(click on image to enlarge)
Nonfat dry milk (NFDM) continues to be traded (?) on the Chicago Mercantile Exchange (CME). The CME charges a fee for each load traded to both the seller and the buyer.
In 2008 there were a total of 16 loads of Grade A traded on the CME - a real money maker for the Exchange. That works out to 5/100 of a percent of production.
In the real world the real sellers are the big co-ops, such as CDI and LOL. The traders on the CME tend to be brokers, not the manufacturers. The CME sends the price signal heard throughout the land. The signal has everything to do with will of the big players and nothing which could be recognized by Adam Smith as a market.