News

High cheese supplies send prices tumbling

August 25, 2004

LOUISVILLE, Ky. — What a difference a week makes.

The price of cheddar blocks traded on the Chicago Mercantile Exchange dropped 7 cents to settle at $1.55 a pound on Aug.26. The decline was the single-largest slip in a 10-cent slide that began Aug. 23.

The week prior, cheddar prices marched up 11 cents on strong demand from schools and anticipation of manufacturers gearing up for holiday preparations.

That was until the USDA's Cold Storage Report, released on Aug. 20, froze traders' confidence. The report revealed that American cheese inventories were up 12 percent over last year, marking the largest July supply build-up in 32 years.

Will cheese prices continue to decline? Check PizzaMarketplace on Aug. 27 for a detailed market update.

Read related articles in our Cheese Market research center.