Saturday, April 17, 2010

NASS Survey

(click on image to enlarge)

In 1996, University of Wisconsin released an import report on cheese trading at the "National Cheese Exchange" in Green Bay, Wisconsin:

Just over a year later the traders fled to the arms of the CME where their trading could be more secretive.

USDA then devised the NASS survey for dairy pricing as a smoke screen to hide the fact that the same factors were in charge.

As can be seen in the above graph the only difference between CME and NASS is a few days. That is because the plant uses CME price to quote to a customer and NASS surveys the product when it goes out the door - hence the delay.

Without the CME there would be no NASS.

In 1998 another report was released detailing the benefits of the cash cheese market:


  1. I have a theory about the collapse of the CME cheese price; it is that Secretary Vilsack indicated to someone that he would not raise the support price. I wonder what his schedule was prior to the price drop.

  2. He actually said that to raise the support price would be at the expense of other agricultural products.