LYNDEN, Wash.—Dairy analyst Jerry Dryer predicted in a Dairlyline.com report that prices for 40-pound cheddar blocks traded on the Chicago Mercantile Exchange will drop only to about $1.30, though 500-pound barrels likely will fall to government support level of $1.10 per pound.
Jim Tillison, executive director of the Alliance of Western Milk Producers, agreed with Dryer. Historically, the gap between block and barrel prices rarely widens beyond a dime. But since block demand is strong and supplies are tight—compared to barrels, for which demand is lagging—Tillison said blocks prices will hold reasonably steady.
The MCT Compass, a monthly newsletter published by MCT Dairies, predicts much the same: block prices falling to $1.30 in December, holding through January, bottoming out at $1.28 in February and turning north by a penny in March.
Read more detailed cheese market commentaries from Dryer below ...
* CHEESE MARKET ANALYSIS: Cheese prices might slip lower before reversing
* CHEESE MARKET ANALYSIS: Expect a smoother cheese market roller coaster ride
* CHEESE MARKET ANALYSIS: Weather, feed and culling to keep cheese prices high
* CHEESE MARKET ANALYSIS: Cheese prices: How high? How long?
* CHEESE MARKET ANALYSIS: Cheese prices will retreat -- but when?
* Cheese prices to remain low for 2003
* CHEESE MARKET ANALYSIS: Cheese prices are on the way up