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The Bureau of Economic Analysis (BEA) regularly publishes data on consumer spending called "Personal Consumption Expenditures" (PCE). The monthly data for "processed dairy products" shows a clear increase in consumer spending through October 2010. So, what can explain the fall in farm milk price generated by players on the CME. I would suggest someone in a position to do so look at the "shorts" on the class III futures.
Production is the other half of that puzzle
ReplyDeleteCHEAP MILK IS THE OTHER HALF OF THAT PUZZLE.
ReplyDeletejohn,
ReplyDeletejust listening to a live market report, and the butter report ended at $1.6525/lb looking to go 170-180 jan-mar. it was further noted that butter has never been over 152 jan-mar.
so why is the class 3 price dropping so fast based of CME?
this see-saw only ever swings 1 way doesnt it?
i just dont understand how everything looks at higher exports, higher world prices adn domestic prices drop and drop and drop.
tomorrow you will see Nov cold storage reports.
ITS DECEMEBR 21st!! 3 weeks? am i the only one that continues to be simply amazed at this situation? its actually a quite fantastic future business class text book chapter, titled the "Magic".
Jake
its no different than insider trading on wall street, and should be just as illegal. These companies can control the price they receive and the cost of their inputs. Same thing happened in what '07 (?) with powder prices. Happens everyday in Chicago and nothing is said.
ReplyDeleteIs it possible to publish names of the "shorts"?
ReplyDeleteYou wouldn't imagine the names Jerome or Jacoby would come up would you?
ReplyDelete