Dairy markets are crazier than the weather this week! New paradigm? First time in history CME spot nonfat dry milk price ($1.8450/lb) ABOVE butter ($1.7925/lb) — flipping the value relationship between skim and fat.
Plus, NFDM has traded above 40-lb cheddar blocks ($1.6475/lb today) for at least the past 6 weeks, now by 20 cents. That’s significant, cheddar drives protein value in milk check, while NFDM represents solids-not-fat.
Federal pricing formulas aren’t designed to translate the flipped script very well. Hard to believe I've been doing the Milk Market Moos column in Farmshine 25 years & weekly for 20 years. TIME FLIES
(p.s. More proof that vendors charging schools 8 to 13 cents per half-pint extra for whole milk (3.25% fat) vs. 1% or fat free are price-gouging kids; should be a penny or two at most).