Today on the CME there was no movement on butter. Hoogwegt has been, for all practical purposes, the sole player in moving butter down by way of offers. Butter has fallen over 45 cents in the past seven days. Does Hoogwegt make butter? No. Is there too much butter? No. Is this the market at work? No.
On what might be considered a more positive note, Kraft has been an active player in moving the price of barrels higher. Wonders never cease.
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Milk pricing is very dysfunctional!
ReplyDeletehttp://www.hoogwegt.com/Products/Butter/tabid/665/language/nl-NL/Default.aspx
ReplyDeleteHoogwegt apparently markets butter
When Hoogwegt (Integrity company) initially lowered the price by 27 cents no cry at the CME. When Darigold raised it 12 cents the next day (probably to try and protect inventory) no cry. Now Hoogwegt, emboldened by the fact that no one cares at the CME, has been moving it down every day. Where are the butter makers with low inventories of higher priced butter? Probably waiting for this rock bottom farm price again and laughing because they can't be blamed this time. The castration of farmers at the expense of the processors continues.
ReplyDeleteHoogwegt probably markets on the world market and can now purchase on the CME market.
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