MD_DA851 Cheese Highlights Report 39 - Released on September 25, 2020 The $.90+ spread between blocks and barrels continues to perplex market bulls. Historical patterns indicate the two market prices will converge, so the elephant in the room is in what manner the convergence occurs, whether block prices retreat or barrel prices strengthen or a meeting in the middle. Cheese production remains mostly busy throughout the country, as milk supplies are generally plentiful. Spot prices in the Midwest remained $2 under to $1.50 over Class. Demand is mixed, but food service orders have ticked up week to week. Mozzarella and other pizza-style cheese producers are saying orders have been increasing, as pizza orders have remained strong despite COVID-19 related restrictions. Information for the period September 21 - 25, 2020, issued weekly Secondary Sourced Information: The CME weekly average for cheese barrels was $1.6385, compared to $1.6160 last week. The weekly average for blocks was $2.5765, compared to $2.3570 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