Cheese prices continue to rise with both blocks and barrels reaching fresh multi-year highs this week.
As David Maloni, ArrowStream commodities expert, has discussed previously, "buyers need to respect the momentum in the markets, which is certainly to the upside."
However, Maloni notes that, "with the higher cheese and milk prices, milk farmer margins continue to improve. This year, U.S. dairy farm net receipts is projected to rise 12.8 percent to its highest level since 2014."
What to Expect
"This should fuel better milk production expansion in 2020," said Maloni. "And better milk supplies, along with other factors including declining international markets, signal that the risk in cheese prices is to the downside."