Monday, November 1, 2010


(click on image to enlarge)

The seventeenth century is known as the age of reason. Descartes (1596 - 1650) famously said, "I think therefore I am." Quite some time passed before thinking became something to be manipulated.

Obviously, there are large stocks of cheese. So, the fact that today Kraft indicated the price of cheese (actually farm milk) should fall. The argument put forth will be centered on stocks.

But, if the consumer sees no indication of cheese stocks, what really happened today, and for the past several days, is those in the middle will profit. As can be seen in the graph above, there is no correlation between retail Cheddar and cheese stocks. There is a similarity in the trend. Consumer prices and cheese stocks both trend up.

Descartes essay from which the famous quote comes is filled with the word, "doubt." The time has come to think and to doubt the usual excuses.


  1. What possible help would selling a few loads on the CME be to Kraft or anyone else in relation to cheese stocks? The only possible explanation lies in the farm milk price. Consumers will not be extended this drop in farm price and processors will be the ones to reap the rewards because farmers are the most vulnerable and practically helpless. The US government has great culpability in allowing this to continue, but this is the status quo.

  2. no label on x-axis