Will There Be A Cheese Shortage For Your Holiday?

Class III Milk Futures

Will you have trouble finding the family holiday cheese ball? Probably not but it will cost you more. There are trends in the milk futures markets that are forcing cheese makers to lock in supplies into 2011.

“It looks like everybody decided to get coverage for 2011,” a trader in Chicago-based CME Group’s dairy complex said today. He expects milk prices to climb further in coming weeks.

Retail dairy products prices are expected to increase 4.5 percent to 5.5 percent next year, the largest estimated rise among all food categories, the USDA said earlier this week. The Consumer Price Index for all food is projected to rise 2 percent to 3 percent.