Cheese prices have been under substantial pressure during the second half of September. The barrel cheese price reached a record high on September 11th and has now fallen 32.50 cents by September 27th with no loads traded on the spot market during the decline. Sellers wanted to sell loads but to no avail, as buyers were nowhere to be found.
This pattern has been seen numerous times as a buying or selling frenzy can occur with buyers or sellers leapfrogging over each other attempting to take care of business only to have the market move substantially outside of the fundamental level of where the market should be. This time a price void developed in the market as the price had increased rapidly due to aggressive buying. Once the buyers were satisfied no one was willing to purchase at the high price. The decline of block cheese was not as dramatic with the price falling 20.50 cents. There was trading activity in the spot market as the buyers of blocks were willing to purchase but at lower prices.
September 30, 2024
Comments