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Prices have been falling on the CME for Cheddar. What does that mean? You will find plenty of people who point to the cheese stocks.
When Cheddar falls on the CME, farm milk prices fall. So, you would think there would be a consistent relationship between manufacturing milk price and American cheese stocks, which are predominately Cheddar. Think again.
On October 15th the cheese price was $1.77 and has fallen $.17 1/2 cents in the twelve trading days since then. In real farm dollars here in California that is a drop of $1.74 per cwt on the 4b cheese price. From almost $16.00 a cwt to barely above $14.00 in less than two weeks. Bet the consumers won't see any of this.
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