A tightening cheese supply is sending prices higher globally.
This month cheddar block prices reached $2.27 per pound. Cobank says that is the highest price in 27 months.
Class III Milk futures are also on the rise, with the bundle average reaching $22.90 in the week following Labor Day. While higher prices moving into the fall is great, traders do not believe they will hang around for long.
CME has the four-month average for January to April 2025 Class III features at just $19.80.
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Foreign trade partners, such as China and the European Union, are still purchasing U.S. commodities, but are becoming more cautious as the Trump Administration’s tariff deadline approaches in August.
Following an on-target CPI, the combination could suggest that inflation is cooling.