# Washington Dairygrams - December 2020

> Spot Cheddar block prices fell from $2.78 to $1.57-3/4 per pound during November on the CME. Class III futures eased from a $17 average to $16.40 for January to March, while Class IV rose. October national milk production was up 2.5% year over year.

- Date: 2020-12-08 · published 2020-12-08T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/6770-washington-dairygrams-december-2020
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Cheese prices fell as the USDA food box program wound down and milk output kept growing, a combination that adds supply pressure on dairy prices. Narrowing gaps between Class III and Class IV should reduce negative producer price differentials on milk checks.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2020-12-08 | 5 | -33.2% | -4.7 | Spot Cheddar blocks collapsed from $2.78 to about $1.57 during November and Class III futures eased, while October milk output rose 2.5% year over year, confirming a supply-heavy cheese-driven price fall. |

## Sources

- hoards.com: https://hoards.com/article-29226-washington-dairygrams---december-2020.html

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