CME Group and Risk Management

Managing price exposure with Block Cheese futures

With a shift toward natural cheese consumption and US cheese exports, the influence of block cheese on commercial transactions has increased in recent years. Manufacturers use block cheese for chunks, shreds, and snack-sized natural cheese snacks, while barrel cheese is consumed in the processed cheese category. These two channels can create dissimilar demand cycles, trends, and seasonal patterns, causing price desparity between cheese blocks and barrels.

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