Market Reports

Those markets that gained ground last week gave some of it back this week, while last week’s losers are now on the rise.

CME spot Cheddar blocks soared to the largest single-session increase on record. Barrels followed reluctantly and the block-barrel spread gaped. The market is on tenterhooks to see whether blocks will move lower or barrels higher to close the gap.

Dairy producers are doing their best to top up the bulk tank while the futures promise decent Class III values. Cheesemakers are going strong, and they report that cheese is moving apace.

The cheese markets stand well below the summer peaks but have made a surprisingly quick return to the lofty elevations from a month ago. Despite the impressive uphill sprint, the trade is clearly questioning the cheese market’s stamina.

Steep losses at mid-week and a Friday rebound added up to net gains across the board.

Cheddar markets lost a lot of ground, but tried to put up a fight. Barrels regained some territory signaling that the market is fumbling about for fair value.