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

Jan. 11-15, 2021 (Week 3)

 

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Market Jan. 11 Jan. 12 Jan. 13 Jan. 14 Jan. 15 Weekly Avg. Previous Avg. Prior Year
Barrel

1.6525

1.6500

1.5800

1.5750

1.5725

1.6060

1.5965 1.5145
Block

1.9625

1.9575

1.9100

1.9000

1.8300

1.9120

1.7790 1.9060
AA

1.3100

1.3100

1.2875

1.3000

1.2900

1.2995

1.4095

1.8990

Cheese

“Cheese production rates are busy early in the year. There is a lot of milk to contend with, as Midwestern spot milk prices range from $8.50 to $2 under Class. Last year, during week 2, spot prices ranged from $3.50 to $1 under Class. Some Western cheese manufacturers are cautious about production schedules, even with increases in demand and last week’s announcement of continued food box programs. Food service sales remain subdued when compared to previous years. Cheese market prices have softened some after last week’s buildup following the announcement. Still, there are some positive expectations once governmental awards are allotted.”

 

Butter

“Across the nation, plant managers are seeing an increase in butter production. Butter churning coincides with in-house cream supplies that extend beyond volumes needed for customers’ near-term butter demand. Freezer stocks are growing and heavier than some manufacturers planned. Butter facilities continue to work around COVID-19 staffing issues. Retail sales are soft as stores work off holiday hangover butter. Drive up restaurant activity is growing and facilitates food service butter sales. Following the announcement of the food box programs, butter market prices got a slight bump, but have steadily declined since early last week.”