Today, at the CME, block Cheddar wet to $1.51 per pound. Grade A NFDM went up 2 1/4 cents to $1.3950 per pound. Butter remained at $2.10 per pound. Baring any significant change, dairy farm milk price will rise dramatically.
However, nobody hitched in from either coast to run CME prices up. It is the same crowd which has participated in running them down. they do what they do because they can.
In January 2007, I spoke at a meeting and put a slide up which showed where some big players thought milk price might go. At the peak I said this is where most dairy farmers will go to sleep. But, the important time to have a discussion about pricing system change is when the price is high.