(click on image to enlarge)
Today, December 14, 2010 CME block prices fell again to $1.3350 per pound. USDA released its latest World Agricultural Supply and Demand Estimate (WASDE). The dairy page is above.
There is a serious disconnect between the activity on the CME and WASDE report. January's class III futures on the CME settled at $13.11.
There is a serious disconnect between CME block prices and other prices on the CME. NFDM Grade A $1.27 per pound.
Weren't those huge cheese inventories made with higher priced milk? What was the incentive for the cheese makers to allow this drastic drop?
ReplyDelete