Supply and demand are constantly affecting pricing in the dairy industry.

Updated every Friday, IPAP’s weekly market recap report offers the latest figures, insight and trends, courtesy of the experts at the U.S. Department of Agriculture. IPAP’s report presented here hones in on barrel cheese, block cheese and butter.

Daily Markets

Oct. 19-23, 2020 (Week 43)

 

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Market Oct. 19 Oct. 20 Oct. 21 Oct. 22 Oct. 23 Weekly Avg. Previous Avg. Prior Year

Barrel

2.2550

2.3000

2.3075

2.4025

2.4550

2.3440

2.1730

2.1425

Block

2.7400

2.7400

2.7400

2.7725

2.7725

2.7530

2.7140

2.1060

AA

1.4975

1.4975

1.4525

1.4350

1.4350

1.4635

1.4825

2.0775

Cheese

“Cheese production rates continue fairly robustly in most of the country. COVID-19 related quarantines for some plant employees in the Midwest have a handful of plant
managers processing with lighter crews. Milk production continues to seasonally increase with cooler weather. Therefore, milk is available for Class III production. Additionally, retail demand is strong ahead of the holiday season. Cheese inventories are reportedly tight on the barrel side, as barrels are reported as balanced to somewhat tighter, as well. Cheese market tones are currently bullish. Barrel prices continue to push toward those of block prices. That said, questions remain regarding government purchasing past the end of this month.”

 

Butter

“Butter production levels are variable across the country. In the East, butter output is steady on moderate churning. In the Central region, butter producers continue to churn steadily as late-week cream has remained available. In the West, sourcing cream has not been a problem for butter makers as availability ticks higher, even as seasonal competition from Class II manufacturing takes form. Nationwide, butter demand reports remain positive. Retail customers are active ahead of the fall/holiday rush. Food service continues to edge up weekly, but pales in comparison to recent years. Regionally, bulk prices are 2.0 to 7.0 cents over the market in the East; flat to 5.0 in the Central, and 2.0 to 7.5 above the market in the West.”

 

Sources: USDA Dairy Market News/CME Group