LYDEN, Wash.--It appears block cheese prices have peaked ... for now, anyway.
According to a Dairyline.com report, dairy analyst Jerry Dryer said since prices remain strong, cheese makers aren't making any moves to boost supplies and pressure prices downward.
"No one wants to have their hands on any inventory when prices are this high," Dryer said.
Dryer said word on the show floor at the recent American Dairy Products Institute meeting in Chicago was that prices have peaked for the moment. Some even predicted a near-term price decline, but he doesn't agree with that outlook. The many factors keeping milk production low, he said, remain somewhat weak and leave little hope for large production increases that would reduce cheese prices.
"So with no upsurge in milk production anticipated for several months, the market should remain relatively firm," he said.
In the past two weeks, cheese supplies have increased just enough to allow for a handful of trades on the Chicago Mercantile Exchange--the first since March 9. Prices dipped only one quarter of 1 cent on April 26, before the market redeemed the same amount the next day, returning the block price to $2.20.
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