Monday, March 21, 2011

Depooled Milk

(click on image to enlarge)

Today was a really big day on the CME - 26 loads of blocks traded. No big changes in players. The charades do not end at the CME, however.

Note above the information from Dairy Market News. Note footnote 3 and the amount of milk depooled from four federal orders. That is another way of saying the dairy farmers in those orders did not see the full value of their milk which went into Class III.


  1. John,

    Historically the only reason to depool was that class 3 was higher than class 1. In other words the pay price was diluted by the class 1 price being lower than class 3 price in that order. If that is not the case what happened?

    Jeff Burdick Sr.

  2. Class II and IV were lower than the blend price, not III. Pooling is not mandatory for milk not going to a fluid plant.

  3. My mistake...class II and IV were "higher" than the blend. Early in the morning.