News

Block cheese jumps amid bidding frenzy

March 24, 2005

LOUISVILLE, Ky. — Following several days of quarter-cent and half-cent increases, the price for cheddar blocks leapt 7.75 cents during March 23 trading on the Chicago Mercantile Exchange.

Forty-nine bids for blocks — a likely record — pushed blocks to a settlement price of $1.58 per pound. One year ago, blocks closed 45 cents higher at $2.03.

The unusual number of bids signals strong demand, said analyst Al Levitt, but he added that it doesn't necessarily point to a huge price run-up. Supplies are close to where industry watchers expected they would be in late March, plus the calendar lacks any near-term major holidays that might send buyers scrambling for product.

Read more in our Cheese Market Analysis Research Center.