MD_DA851

     Cheese Highlights

     Report 38 - Released on September 18, 2020

     The record high for the block and barrel price spread remains at the forefront of
     conversations with contacts regarding cheese market health. As CME block prices shift
     higher, so follow barrel prices. That said, the rate of barrel price growth pales in
     comparison to the daily jumps for blocks, as the spread widens in dramatic fashion. Food
     service sales continue to tick up for cheesemakers, although, as with many dairy products,
     sales figures are behind previous years’ figures due to COVID-19 related adaptations for
     restaurants, schools, etc. Cheese inventories are available, but both Midwestern and Western
     producers say barrels are becoming more available weekly. That said, some contacts suggest
     current inventories are not worrisome. After months of mostly uniform reports on fully
     active cheese production in the Midwest, cheese plant managers report some slowdowns
     regarding production schedules either currently or near term. Some are working through plant
     updates/maintenance, which could be viewed as timely with spot milk prices increasing on the
     week. Spot milk prices increased on both the bottom and top of the range, from $2 under
     Class to $1.50 over Class III.

     Information for the period September 14 - 18, 2020, issued weekly

     Secondary Sourced Information:

     The weekly average price for CME barrels is $1.6160, compared to $1.6538 last week. CME
     blocks’ weekly average is $2.3570, compared to $2.1563 last week.

     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov