Trading at the Chicago Mercantile Exchange (CME) of block Cheddar accounts for all the price volatility of both farm milk and wholesale cheese. In order for anyone to think this is the market at work, one would have to believe that when a farmer buys seed and fertilizer, the processor also buys something of equal costs.
Capitalism is based upon costs plus a profit equals selling price. There is no way to have two segments in the supply chain taking price signals from one source – the CME.
The pricing system is broken.