LYNDEN, Wash.—Dairy market analyst Alan Levitt believes that the $1.80 per-pound price on cheddar blocks traded at the Chicago Mercantile Exchange may fall slightly in the near future.
According to a Dairyline.com report, Levitt said declines in July through October milk futures prices point to cheese prices of $1.75 this summer, and a $1.60 by the fall.
How long buyers will continue to absorb the unusually high volume of cheese offered over the last several weeks at the CME is about anyone's guess, he added. But what's certain is widespread concern over holiday season shortages has made buyers willing to buy at $1.80.
As always, weather will play a role in whether cheese prices rise or fall in the next quarter. A hot summer would suppress milk production and give cheese prices a lift, whereas cooler weather would help production and put downward pressure on prices.