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Cheese prices...

P

Piper

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Down 27.75 cents in the past three days to 1.5125. I believe we traded at about 2.15 during the summer?

If you’re using 500 pounds of cheese per week, that’s an extra profit of $318.75 every week 🙂
 
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It was up to $2.28 in May. This is indeed a nice relief for us.

Is it time to drop menu prices back down?.. yea right! :twisted:

Let’s all make some money now.
 
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I was soooo happy to see it went down to 1.84!!! But then the next week went back up to $2.04 😦
 
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Sure would be nice to see the results…but our sales rep continues to fight with me on cheese prices. We have met with two other vendors and should have some insight next week.

We are currently at 2.24 LMPS block.

What is everyone else paying?

Kris
 
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I paid $1.89 for LMPS loaves last week. I’m currently on a Block + 10 cents with a one week lag. It should be at $1.71 this week. 8)
 
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Kris:
We are currently at 2.24 LMPS block.

What is everyone else paying?

Kris
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Down another 7 cents over the past two days to 1.4425. I don’t remember the last time we were this low.

Kris, I’m paying block + 17 cents on a two week trail. It’s based off of the average weekly price.

I’ll pay 1.956 this week and 1.8545 next week. If it doesn’t move for the rest of this week, we’ll be paying 1.6225 two weeks from now. You can bet we’ll be running that cheese inventory on a shoe string the next couple of weeks.
 
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wow!!! Time to make up for lost profits. I hope the commodities brokers go bankrupt for being greedy and driving the prices up. Long live pizza 😃
 
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Forget about the barrel market as that really doesn’t pertain to much in pricing to pizza places. The only reason I look at it is as a sign of stability in the cheese market. Generally it should be 2-3 cents cheaper than the block market. If the difference isn’t close to this range, like now its 7 or 8 cents higher, i take it as a sign that there could be large fluctuations ahead.

The cheddar market on the CME is a terrible way to set prices on all cheese nationwide. The trades that take place here only represents a miniscule portion of the cheese used throughout our country. By allowing all prices to be set based on this leaves the oportunity for massive manipulations by dairy cooperatives like Dairy Farmers of America. Don’t be too surprised to find out that thats why we’ve been paying such high prices for so long and some sort of threat of investigation is why we’re seeing such dramatic decreases.
 
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Forgive my ignorance but what does Block mean then? Is that a pound? So if the block price is $1.43 and I just paid $2.04/lb, is that bad?
 
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generally you need to look at the block price per pound 2 weeks ago to get a base to start with. Generally a good price if you get block cheese would be between 15 and 30 cents over this unless you are using a super premium cheese like Grande or something similar. If you get your cheese diced or shredded expect to pay another 10+ cents per pound. If you are not set up with block plus pricing with your supplier expect the prices to swing like retail gasoline. They’ll go up quickly when the market increases, but go down VERY slowly as the market decreases.
 
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paul7979:
By allowing all prices to be set based on this leaves the oportunity for massive manipulations by dairy cooperatives like Dairy Farmers of America. Don’t be too surprised to find out that thats why we’ve been paying such high prices for so long and some sort of threat of investigation is why we’re seeing such dramatic decreases.
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Yep. Two former executives of the DFA were were fined $12 million on Tuesday for attempting to manipulate the milk futures market. They did it by purchasing massive quanties of block cheddar on the spot call market (the very one used to price our cheese.) Here’s the story: http://www.kansascity.com/business/story/940558.html
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paul7979:
The cheddar market on the CME is a terrible way to set prices on all cheese nationwide. The trades that take place here only represents a miniscule portion of the cheese used throughout our country.
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The cheese spot call market is usually only open for about five minutes per day. There are only a handful of players in the market, and there are usually only a few trades per day. Many times there are ZERO trades and the “price” changes based on unfilled bids. Geez, I bet nobody could possibly manipulate this market :roll:
 
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