# Washington Dairygrams - August 25, 2020

> Cheddar block prices slid to about $1.60/lb in mid-August after trading between $2.50 and $3 from mid-June to mid-July. The July Class III price came in at $24.54/cwt, driven by record protein prices, while negative producer price differentials widened. Futures pointed to August Class III near $19.50 and a fourth-quarter Class III near $16.60.

- Date: 2020-08-25 · published 2020-08-25T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/51774-washington-dairygrams-august-25-2020
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Falling cheese prices and forward futures well below July levels indicate lower milk returns ahead, which weighs on dairy herd feed demand and dairy by-product values.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2020-09-01 | 1 | -16.1% | -5.4 | It showed cheddar blocks collapsing from $2.50-3 to about $1.60 while futures implied Class III falling toward $16.60 in Q4, signaling that the futures curve still had to converge lower. |

## Sources

- hoards.com: https://hoards.com/article-28542-washington-dairygrams---august-25-2020.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.