News

Whiplash! Cheese prices soar then plummet

March 16, 2005

LOUISVILLE, Ky. — After climbing 22 cents in the past six sessions, prices for cheddar blocks plummeted more than 14 cents in March 3 trading on the Chicago Mercantile Exchange.

When trading ended, blocks closed at $1.55, down from $1.69 the prior day. Barrel prices also slid, falling more than 9 cents.

No blocks were traded and two offers remained on the board, signaling the potential for further price drops. However, the current narrow gap between blocks and barrels (less than 3 cents) can indicate prices are stabilized.

Jerry Dryer, editor of Dairy & Food Market Analyst newsletter, said that such volatility likely will be the norm throughout the year.

"Supplies are a little tight and demand is good," Dryer said. "I think you'll see (prices) stay above at least $1.45 for now."

Read more on cheese prices in our Cheese Market Analysis Research Center.