U.S. Foodservice(TM) - Market Report

Dairy- The October milk-feed price ratio was the highest since March 2008 suggesting improving profitability for milk farmers. Still, a general milk production slowdown is anticipated to persevere deep into 2010. International dairy prices are moving notably upward which is concerning especially for domestic cheese prices. The CME cheese markets are modestly higher this week but buyer interest is reported to be waning. The CME butter market has climbed to its highest level in nearly a year. The butter market usually peaks soon and then moves roughly $.05-$.10 lower.

	Market Trend	Supplies	Price vs. Last Year
Cheese Barrels- CME	Increasing	Good	Lower
Cheese 40 lb Blocks- CME	Increasing	Good	Lower
American Cheese	Increasing	Good	Lower
Cheddar Cheese	Steady	Good	Lower
Mozzarella Cheese	Increasing	Good	Lower
Provolone Cheese	Increasing	Good	Lower
Parmesan Cheese	Increasing	Good	Lower
Butter- One lb Solids	Increasing	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)	Increasing	Good	Lower
Class III Milk- CME	Increasing	Good	Lower
Class IV Milk- CME	Increasing	Good	Lower