Today, January 14, 2011 the price of Grade A NFDM rose to $1.4325 per pound. There were an amazing 13 trades this week, where usually there are none. The prior weeks average was $1.2940 per pound.
The answer lies in Brazil with La Nina flooding in which more than 500 have died.
The Brazilian government wants an immediate 66 million pounds of NFDM for emergency food relief. New Zealand is hit with another La Nina weather event reducing milk output.
The U.S. manufacturers stocks of NFDM in November were 127.9 million pounds.
This is a big deal. All bets are off. Still time for low ball risk management - if so inclined.