As thin as the traded volumes in the market are today, as thin is the confidence for prices to move significantly in either direction from here. It seems like the market has come to another standstill, which is not unexpected in the middle of the summer holidays.
Still, over the past few weeks, we’ve seen cheese prices climb to a level that only seems suitable for a few spot trades. However, bigger volumes or volumes for September and on are not traded at the levels we are seeing today. Currently, the big volumes are not traded yet, and it remains to be seen at what level those trades will occur in the coming weeks. The game between bigger buyers and sellers will likely start again at the end of August, where producers will aim for high prices, and buyers are expected to do the exact opposite. We might ultimately settle somewhere in the middle. Until then, producers will likely aim for the highest prices, with no need to send out lower offers.
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