News

Cheese market crashes hard

December 13, 2004

LOUISVILLE, Ky. — Look in your stockings, pizza operators: Santa came early.

Block cheese prices collapsed on Dec. 13, falling 28 cents to $1.42 in trading on the Chicago Mercantile Exchange.

Market watchers predicted a price drop would come soon, but it's likely few expected such a deep descent.

In his weekly Dairy & Food Market Analyst newsletter, Jerry Dryer called for a drop to $1.50 landed pretty close to the mark.

Dryer also forecasted the buck-and-a-half range could hold through Q1 2005. But with five block offers left on the board, sellers may be challenged to fetch today's $1.42 when trading resumes tomorrow.

December's first two weeks have been a story of price extremes. After climbing to a dizzying $1.95 on Dec. 2, cheddar blocks tumbled to 20 cents just two sessions later. That decline began a gradual meltdown that turned into today's gut-wrenching drop.

One year ago on this date, blocks traded at $1.35.

Read more in our Cheese Market Analysis Research Center.