“
Like the price of oil, silver and hogs, cheese prices are set, in part, by traders in commodities markets. Each trading day at 11 a.m. Chicago time, the Chicago Mercantile Exchange operates a 10-minute session in which buyers and sellers — typically large dairy food cooperatives, cheese producers or other companies active in the industry — electronically trade roughly 40,000-pound truckloads of young, mild Cheddar.
“Cheese prices soared to a record high on June 8, when a 40-pound block of Cheddar — the benchmark for cheese, akin to a barrel of West Texas Intermediate in oil markets — touched $2.585 a pound on the CME. By Tuesday, the price of block Cheddar jumped even higher to $2.81 a pound.”
What’s Gotten Into The Price of Cheese? - NYT
https://www.nytimes.com/2020/06/22/business/cheese-cheddar-prices.html?smid=em-shareI can see where this could be a problem if you actually had to take delivery of a whole truck load of the stuff when your options expired at month’s end.
Comments
A good problem for a supplier or middleman to have. Though somewhat surprising, since even Cheez-Its says it doesn't want "young, mild Cheddar" but something more "mature".
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My colleague at work bought lots physicsl gold bars and antique guns (very smart like RONO) For quite long time, he continues to buy them recently.