News

Cheese prices hit floor, then inch higher

May 12, 2005

After finding the floor at $1.42 per pound on May 10, cheddar blocks began an upward trek to end a price slide from a height of $1.62 on April 4.

May 13 trading at the Chicago Mercantile Exchange saw prices close at $1.47 as 10 bids met with no trades.

One year ago, blocks traded at $2.

If prices continue climbing, analysts expect the increases will be gradual and not dramatic. Seasonally high milk production is generating ample supplies that are headed to cheese plants. Demand from the upcoming summer cookout season should have some impact on cheese sales at the retail level, while restaurant companies continue reporting strong results for this year's first quarter. On May 10, Domino's Pizza reported same-store sales gains of 11.2 percent for the period; Papa John's comps rose 3.8 percent for the same three months.