Market Reports

CME spot Cheddar barrels climbed to an all-time high last Friday and managed to cling to the precipice on Monday. Then their perch gave way and they plunged over the cliff.

Trading volumes were light, but that led to a sense of foreboding. The rally is real, but how long can it last? The futures curve reflects traders’ fears that the market cannot sustain these prices into next year.

The combination of more milk and more cows stopped the bulls in their tracks, and made for a lot of red ink on LaSalle Street through mid-week.

The bulk of the government buying is supposed to end soon, but, judging by the sudden rally on Thursday, the trade may expect another round of aid for dairy purchases.

Consumers continue to reach for kitchen staples that are familiar and convenient, and Cheddar fits the bill.

All of the CME spot markets moved higher, and cheese did so with particular verve. Once the laggard, barrels are now the leader.