MD_DA851

     Cheese Highlights

     Report 4 - Released on January 24, 2020

     Milk into cheese vats remains available for active production rates throughout the country.
     Prices on the spot milk market ranged from Class III to $1.50 under Class. In comparison,
     last year's range was $.50 under to $1 over, while the range was larger in 2018: $3 under to
     $1 over Class III. Cheese barrels are more accessible according to Western contacts, but
     Midwestern barrel cheese mongers relay steady demand has kept their inventories in check,
     regionally. They are currently off-loading holiday-produced inventories. Cheese market tones
     are gaining a little ground after what has been a capricious start to the year, as block
     prices rolled over $2 this week. That said, the block-over-barrel price gap reached over
     $.40 last week. Marketers expect the historically large price chasm to diminish. The
     question remains as to how the price gap shores itself up: whether it be block prices
     decreasing, barrel prices increasing, or a culmination of the two. Generally, markets are
     uncertain with both bullish and bearish accents. Prices have moved higher this week overall,
     but the bearish gap looms.

     Information for the period January 20 - 24, 2020, issued weekly

     Secondary Sourced Information:

     The weekly average price for CME barrels is $1.6156, compared to $1.5145 one week ago. CME
     blocks’ weekly average is $1.9913, compared to $1.9060 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