Saturday, September 11, 2010
(click on images to enlarge)
During this past week the trade data was released for July 2010. According to United States International Trade Commission (USITC) trade database, the U.S. exported NFDM in July 2010 for an average of $1.29 per pound.
The numbers collected by NASS and CDFA are all weighted by volume. That is, the price associated with the highest volume carries the most clout. So in July 2010, the average NASS price was $1.22 per pound - 7 cents less than the export price. The difference adds up on the export volume to $4.7 MILLION. Pretty bad.
But, but wait, if the NFDM sold by the U.S. (whoever that is)had sold at world price the difference would be an ADDITIONAL $ 8.3 MILLION.
The real outrage here is not in what I have shown but rather, what I have just described is "business as usual."