• Block cheese dives 20 cents to $1.80, further drops ahead

    Tags: Cheese

Prices for block cheddar plummeted 20 cents on the Chicago Mercantile Exchange to trade at $1.80 on May 21.

Throughout mid-May, market signals have warned of an imminent drop. The May 20 release of the USDA's Cold Storage Report released showed cheese stocks inching up slightly, and an unusually large gap between prices for 40-pound blocks and 500-pound barrels has pressured prices for several days. Commonly the gap is a nickel, but from May 17-20, barrels were 17 cents cheaper, and analysts predicted blocks would fall to narrow the difference.

Only part of that scenario developed, however, when in May 21 trading, barrels followed blocks downward 22 cents to close at $1.61. In the process, the price gap widened from 17 cents to 19 cents.

Could the ongoing imbalance signal even more cheese price declines ahead?

The question got a flat, "Yes," from Jerry Dryer, editor of Dairy & Food Market Analyst newsletter. "I don't know how much or how soon, but prices will fall some more."

Reinforcing Dryer's prediction was the day's 74-cent decline in milk futures prices. The drop was just a penny shy of the maximum allowable single-day decrease.

 

 

Related Content

User Comments – Give us your opinion!
Products & Services

Features

http://global.networldalliance.com/new/images/products/4541.png

4541/Features

Get more from your restaurant POS with online videos and tutorials

http://global.networldalliance.com/new/images/products/1294.png

1294/Get-more-from-your-restaurant-POS-with-online-videos-and-tutorials

Leapfrog POS App

http://global.networldalliance.com/new/images/products/4559.png

4559/Leapfrog-POS-App

DriverAdvisor Fleet Monitoring

http://global.networldalliance.com/new/images/products/DriverAdvisor_iix.gif

1425/DriverAdvisor-Fleet-Monitoring

Restaurant technology news, trends & best practices

http://global.networldalliance.com/new/images/products/5079.png

5079/Restaurant-technology-news-trends-best-practices

PCI Compliance Services

http://global.networldalliance.com/new/images/products/4892.png

4892/PCI-Compliance-Services

ExpressNet

http://global.networldalliance.com/new/images/products/ExpressNet_iix.gif

1428/ExpressNet

Social Security Number (SSN) Verification

http://global.networldalliance.com/new/images/products/SSN_employmentsearch.gif

1426/Social-Security-Number-SSN-Verification

DriverSafe

http://global.networldalliance.com/new/images/products/keyboard_iix.gif

1424/DriverSafe

Put your menu in your customers' pocket

http://global.networldalliance.com/new/images/products/1293.png

1293/Put-your-menu-in-your-customers-pocket

Fast Casual Executive Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.