December 2

12/2 – In a year when China’s ASF disaster has already helped raise prices of U.S. pork and beef 90s trimmings – and is now potentially threatening poultry prices –surprisingly it’s cheese that has been the most volatile commodity. CME block cheese prices hit 5-year highs of 2.2375/lb in Sept and are currently $1.9625. Block prices averaged $1.97/lb for the month of Nov, up 41.7% from $1.39 a year ago. Barrel (American / processed) cheese prices, which have historically averaged a nickel below block, peaked at $2.39 on 11/6 and are currently $2.2475. Barrel averaged $2.26/lb in Nov, up 72.5% from $1.31 in Nov 2018. Very low ($1.16 in Jan) barrel prices stimulated increased usage and drew down stocks this year. American cheese in cold storage on Nov 1 was down 8.5% from a year ago. Cheese prices look to move seasonally lower in Dec but remain well above 2018 levels.