U.S. Foodservice(TM) - Market Report

Dairy- September US cheddar cheese (296%), butter (63%), nonfat dry milk (35%) and whey (7.8%) exports were all significantly less than the prior year. Since then however, the US dollar has continued to depreciate, the EU has reduced subsidies on dairy exports and international dairy prices have soared. All of these factors are bullish for US dairy exports and markets. Current US cheddar ($.17) and butter ($.40) prices are at considerable discounts to the corresponding international markets. There are signs, though, that the cheese and butter markets could temporarily top soon.

	Market Trend	Supplies	Price vs. Last Year
Cheese Barrels- CME	Decreasing	Good	Lower
Cheese 40 lb Blocks- CME	Increasing	Good	Lower
American Cheese	Steady	Good	Lower
Cheddar Cheese	Steady	Good	Lower
Mozzarella Cheese	Steady	Good	Lower
Provolone Cheese	Steady	Good	Lower
Parmesan Cheese	Steady	Good	Lower
Butter- One lb Solids	Steady	Good	Lower
Nonfat Dry Milk	Increasing	Good	Higher
Whey, Dry	Increasing	Good	Higher
Class I Milk Base	Steady	Good	Lower
Class II Cream (Heavy Cream)	Steady	Good	Lower
Class III Milk- CME	Decreasing	Good	Lower
Class IV Milk- CME	Steady	Good	Higher