June 1

6/1 - After bottoming at $1.00 per pound in mid-April, block cheese prices have soared to $2.23 (5/29). In March, dairymen found themselves drowning in milk as schools and restaurants shutdown. In response, producers cut output. As a result of tighter milk supplies and substantial government assistance programs, cheese began recovering in late April. Now, supplies are tight and cheese plants have experienced production disruptions. On the demand side, restaurants have found their take-out groove and many states are reopening dining rooms. At retail, cheese products have been in high demand. The USDA says many plants are running weekends to keep up with orders. Looking forward, output is expected to recover, further increases in demand are questionable and prices have likely peaked. Cheese futures for June are $1.96; July $1.87; Aug $1.78.