Buy cheese?

hank

“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-share


I 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.

msf

It's the opposite problem from what happened with oil. With oil, there was so much of a glut that you literally couldn't give it away. That's why futures went negative (you had to pay someone to haul it away when you took delivery). With "young, mild Cheddar", one has the opposite "problem" - one takes delivery of something for which there is too much demand.

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".

johnN

Aside from cheese, we traded for clorox commodity...kept going up for quite sometimes. Has small annual dividend also. At least DT did give up ideas regarding chorox usage to cure covid19

Mark

That seems just like an insane way to invest John.

johnN

hi sir @_Mark, we did buy clorox stock but very little few thousands dollars worth. Think chart looks better than DJI long term

https://www.google.com/search?q=clorox+stock&oq=clorox+st&aqs=chrome.1.69i57j35i39j0l3.3725j1j7&sourceid=chrome-mobile&ie=UTF-8#wptab=s:H4sIAAAAAAAAAONgVuLSz9U3MK_KsUw2fsToyi3w8sc9YSmbSWtOXmM04-IKzsgvd80rySypFNLgYoOy5Lj4pJC0aTBI8XAh8Xl2MfG5ZeYl5iWnOufnFiQWpS5iFcirLE61Ss6pUEiGCAEA-n27GnoAAAA



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.