Commodities Corner: Cheese prices crumble — but the global trade dispute could halt their drop

Record U.S. supplies of cheese have contributed to a drop in prices this year, and traders predict more of the same for the rest of 2018.

Longer term, however, hope of a turnaround in prices lies in a prolonged global trade dispute that may cause dairy farms to close up, leading to a slowdown in cheese production.

Benchmark block cheddar cheese prices settled at $1.5425 a pound on Wednesday in cash trading on the Chicago Mercantile Exchange. That’s off 1.2% so far this year. Cheese futures CSCN8, -0.40% meanwhile, settled at $1.508 a pound Wednesday, down roughly 8% year to date, according to FactSet data.

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