MD_DA851

     Cheese Highlights

     Report 3 - Released on January 17, 2020

     Cheese markets have created some anxiety for cheese producers and contacts in the region.
     The elephant (or bear) in the room is the $.40+ price gap between blocks and barrels on the
     CME. Contacts are acutely aware that this price gap is assuredly going to correct, and
     history shows the correction may end up being a block price plummet. Milk availability for
     cheese producers is ample nationwide. Some Midwestern producers say cheesemaking is a 7-
     day/week process currently. Western contacts say the abundance of milk has led to shifts in
     barrels, which is a potential factor in the current bearishness on the barrel side of the
     market. Central spot milk prices ranged from $3.50 under to $1 under Class. All said though,
     even with markets in flux, on-the-ground cheese buying is holding its own. Undoubtedly,
     playoff football season is helping out in the retail sector and food service sector,
     particularly for mozzarella and provolone makers.

     Information for the period January 13 - 17, 2020, issued weekly

     Secondary Sourced Information:

     The CME weekly average for cheese barrels was $1.5145, compared to $1.5810 last week. The
     weekly average for blocks was $1.9060, compared to $1.8595 a week ago.

     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