CHICAGO -- The price of 40-pound blocks of cheddar cheese sold on the Chicago Mercantile Exchange plummeted to $1.16 per pound on Oct. 17, its lowest price since Sept. 13, when it traded for $1.13.
On the same day last year, block cheddar fetched $1.24 per pound.
Since Oct. 14, the block price has fallen 13 cents. The decrease punctuates the turnaround of a cheese market rally that began on Sept. 16, and saw block prices hold at $1.30 for seven straight trading days.
On Oct. 16, dairy analyst Jerry Dryer predicted cheese prices likely wouldn't hold at current levels. Overall, Dryer said, supply still outweighs demand, and that strong production could weaken prices further.