DAIRY PRODUCT MARKETS
AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE
WHOLESALE CHEESE MARKETS
NATIONAL - MAY 6: Cheese production continues to be very active across the nation. Northeast cheese manufacturers are working diligently to move cheese and keep inventories at comfortable levels. Cheddar and American varieties saw increases in interest. Inventory pressures in the Midwest are seeing some relief this week. Several producers report increases in sales. However, other industry contacts are reporting a slowdown in the market. They feel that buyers may be holding out on purchases to see if cheese prices will continue to decline. Overall, it is a mixed market in the Central region. Stocks are building in the West. Although demand is steady, storage space is becoming increasingly difficult t
NORTHEAST- MAY 11: Northeast cheese plants are maintaining full production schedules to manage heavy seasonal milk receipts. Producers’ cheese stocks are building, particularly in cheddar-aging programs. Processors are seeing strong foodservice interest develop around provolone cheese. Overall, the market undertone is unsettled as prices trend lower. Last week, the CME Group weekly average prices for blocks and barrels reported declines. Likewise, this week the Northeast wholesale cheese prices adjusted lower.
Wholesale prices, delivered, dollars per/lb: Cheddar 40-lb blocks: $1.7325 - $2.0175 Process 5-lb sliced: $1.5475 - $2.0275 Muenster: $1.7525 - $2.1025 Swiss Cuts 10-14 lbs: $2.9850 - $3.3075
MIDWEST AREA - MAY 11: Milk production in the Central region remains strong, keeping cheese manufacturers running full schedules. Contracts continue to be filled and sales are steady. However, a handful of manufacturers report increases in sales. There is still a considerable amount of cheese stocks in the region. The recent upturn in sales has returned some inventories to comfortable levels. Although there are available loads of milk, a few processors are not willing to purchase extra milk without strong buyer interest. Cheese makers seem determined to work through inventories and avoid rebuilding stocks, even if they have available storage capacity. Several producers report pushing some inventory into shred cheese. Cheese prices are declining and block and barrel prices are inverted on the CME. Industry contacts feel this is causing an unsettled feeling in the market.
Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4400 - $1.8000 Brick/Muens 5# Loaf: $1.7025 - $2.1275 Cheddar 40# Block: $1.4300 - $1.8250 Monterey Jack 10#: $1.6775 - $1.8825 Blue 5# Loaf: $1.9700 - $2.9575 Mozzarella 5-6# (LMPS): $1.5025 - $2.4425 Grade A Swiss 6-9#: $2.5025 - $2.6200
WEST - MAY 11: Milk is readily available and many western cheese plants are running at or near full schedules. Retail demand remains fairly good for most varieties of cheese, and a few manufacturers report sales of Italian cheese to be better than last week. However, some industry contacts suggest demand for American type cheese may have backed off a little. In addition, a few sources speculate there may be a lot of aged block and barrel cheese in storage. There are limited places to move these stocks with US cheese still not fully competitive in international markets. The letup in demand, along with long inventories may be contributing to the downward pressure on cheese prices seen on the CME Group trading. The US weighted average advertised retail price for an 8-ounce pack of natural shredded cheese is $2.24, down $.20 from last week, and down $.15 from a year ago. Packs average $2.37 in the Southwest and $1.86 in the Northwest.
Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4550 - $1.7125 Cheddar 40# Block: $1.4350 - $1.8800 Cheddar 10# Cuts: $1.6150 - $1.8350 Monterey Jack 10#: $1.6250 - $1.7850 Grade A Swiss 6-9#: $2.5625 - $2.9925
FOREIGN -TYPE CHEESE - MAY 11: Availability of semi-hard cheese in the EU has declined as a result of recently reduced production in leading EU cheese production countries such as Germany. Stocks in aging programs have declined.
Selling prices, delivered, dollars per/lb: Imported Domestic Blue: $2.6400 - 5.2300 $1.8975 - 3.3850 Gorgonzola: $3.6900 - 5.7400 $2.4050 - 3.1225 Parmesan (Italy): 0 $3.2875 - 5.3775 Romano (Cows Milk): 0 $3.1400 - 5.2900 Sardo Romano (Argentine): $2.8500 - 4.7800 0 Reggianito (Argentine): $3.2900 - 4.7800 0 Jarlsberg (Brand): $2.9500 - 6.4500 0 Swiss Cuts Switzerland: 0 $3.0225- 3.3450 Swiss Cuts Finnish: $2.6700- 2.9300 0
