Market Reports

The gains were driven by impressive improvements in milk production per cow. Higher prices and mild weather have boosted milk output.

Spot Cheddar is still at a rather lofty perch and spot barrels have the highest value in more than five years. The markets are doing their job.

CME spot Cheddar barrels reached a five-year high, then the bids dried up.

The Cheddar market was already red hot, but barrels pushed the mercury even higher this week.

Fresh cheese is tight, and the markets seem to have someone – or several someones – over a barrel. High prices are working to trim demand at the margins, boost production, and attract imports.

Judgment is further clouded by stupefying volatility and a sense of déjà vu. Sky-high cheese prices are simply difficult to sustain.

The bulls are still bruised after getting walloped in mid-September, when spot cheese staged an invigorating climb followed by a dramatic collapse.

The fundamentals of the milk powder market seem particularly healthy, and the bulls are roaming free.

After much volatility, the boundaries are becoming clearer. The spread between blocks and barrels narrowed, adding another layer of uncertainty to the already complex cheese markets.

After rocketing higher last week, CME spot Cheddar blocks continued to soar. But, the cheese markets are likely to remain volatile.