November 2

11/2 – So far this year, block cheese prices have been record-low at $1.00 per pound in April, record-high at $3.00 in July, back down to $1.58 in Aug and are now $2.7825 (10/30). But two big factors point to lower cheese prices. First, U.S. milk output is growing - up 2.3% (year-over-year) in Sept, following a 1.8% increase in Aug and 1.5% in July. Secondly, the Covid-stimulus “Food Box Program”, which dumped over $800M in dairy purchases, came to an end on Oct 31. Round 4 has not been funded and is in limbo going into the election, and possibly afterward, depending on the outcome. The CME block market that will average near $2.00/lb in 2020, looks to trade in the $1.55-$1.75 range for 2021. We encourage you to view Eric Meyer’s Dairy Outlook presentation for Market Vision’s Virtual Conference at https://marketvisionfall.vfairs.com/en/hall#topics-tab.