A Weird Dairy Spread Is Signaling Higher US Cheese Prices
- Prices on the spot market dropped sharply as futures trailed
- High feed costs seen weighing on American milk output
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There’s an anomaly in an obscure corner of the dairy market signaling that US cheese prices are likely to soon be on the rise.
Prices of block cheese on the spot market suffered a sharp drop tumbling by about a third since late March to $1.40 a pound as of June 21. However, prices on the futures market didn’t match the declines, trailing with a slide of about 20%. The wide spread has been present since the end of the first quarter.