By asking the question, how low, I do not intend to guess out future CME prices. The question I am asking is how low will the powerful stoop relative to human decency.
Today's CME prices indicate there is no honor among the thieves. Trading a few loads on the CME impacts supply/demand hardly at all. Anything traded on the CME could be traded off the CME. This can and does happen all the time. The only thing trading at the CME really affects is farm milk price.
December Class III is $13.56.
Blocks today are $1.48. For comparison world price (FOB Oceania) is is $1.86.
Butter fell $0.27 today to close on the CME at $1.88. World price for butter adjusted to 80% butterfat is $2.32. No One can make the case that there is too much butter.