Monday, December 28, 2009
(click on image to enlarge)
Most people I speak with say milk is fairly well balanced. Nevertheless, someone for some reason is driving the price of block Cheddar on the CME down.
If you compare the "Commitment of Traders" report above with the one I posted with data from December 15, 2009, you will notice an increase in shorts. Futures are essentially a bet. Longs are betting prices will increase and shorts are betting they will go down.
There will be no shortage of people with opinions on what is happening but, the opinions which will probably be the most worrisome will be the bankers.
As Mark Twain said, "A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain."