WHOLESALE CHEESE MARKETS

NATIONAL - NOV. 16: Contacts are anxious and hopeful for a longer-term steadiness in the wake of what has been a murky start to Q4. Milk availability is finding balance in the East, but is improving in the Midwest and West. As some midwestern cheese producers have cut back on production, other plant managers are finding milk at discounts this week. Reported spot milk prices were $3 under to $1 over Class. Cheese demand is mixed by region and within each region in some cases. The strong US dollar, weaker euro and tariff-related pushback have international buyers either hesitant or searching elsewhere for better values. Barrel inventories and other stocks produced in the previous quarters are reportedly long.

NORTHEAST- NOV. 20: Milk production in the Northeast is level this week. Frigid weather conditions are lingering in parts of the region, causing slower travel time on the roads.

However, there are little to no reports of major transportation disruptions or power outages at this time. Currently, milk volumes are steady to becoming more available, as most Class I needs are met this week. There are some reports of cheese makers adding additional milk loads into the plants. Although a couple manufacturers are closed for Thanksgiving, they will run longer production schedules for a few days after the holiday. Mozzarella and Provolone cheese orders are working well through foodservice contracts. Cheddar orders from retailers are stable. Grocers are heavily advertising holiday cheese discounts. Cheddar trading activity is steady to quiet this week due to market participants having adequate supplies. Cheddar spot prices are lower on various pricing indices.

Wholesale prices, delivered, dollars per/lb: Cheddar 40-lb blocks: $1.8550 - $2.1400 Process 5-lb sliced: $1.4850 - $1.9650 Muenster: $1.8400 - $2.1900 Swiss Cuts 10-14 lbs: $3.1100 - $3.4325

MIDWEST AREA - NOV. 20: On A growing number of midwestern cheese plant managers are allotting more time off this week. One result is the busier cheese makers, namely cheese manufacturers focusing on holiday themed varieties, are clearing more discounted milk. Reported spot milk prices were all discounted, ranging from $1 to $3 under Class. Although discounts were reported, spot milk prices from Thanksgiving week during 2017 were as low as $5 under Class. Inventories vary from plant to plant, while barrel producers have begun to see a necessary downshift in stocks in the past two weeks. Cheese markets, after a rough November, did not get relief on Monday as both CME barrel and block prices slipped. Some cheese producers relay that markets have slowed sales for most of the fall, while others are not as affected. There are some cheese contacts who foresee a bullish 2019 ahead. They suggest cheese inventories will begin to clear up as milk intakes have been tighter than in recent years, creating an improved supply/demand balance.

Wholesale prices delivered, dollars per/lb: Brick 5# Loaf: $1.7625 - $2.1875 Cheddar 40# Block: $1.4900 - $1.8850 Monterey Jack 10#: $1.7375 - $1.9425 Mozzarella 5-6#: $1.5625 - $2.5025 Muenster 5# $1.7625 - $2.1875 Process 5# Loaf: $1.4400 - $1.8000 Grade A Swiss 6-9#: $2.6250 - $2.7425 Blue 5# Loaf: $2.0300 - $3.1000

WEST - NOV. 20: Western cheese demand has remained steady. Industry contacts suggest domestic buyers continue to seek out cheese for retail and foodservice accounts.

Seasonal holiday demand appears to be picking up somewhat. However, the strong dollar is creating some headwinds for export sales. Inventories, especially for barrels, are heavy. Milk supplies are ample for most cheesemaking needs.

Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $1.7025 - $1.9225 Cheddar 40# Block: $1.5225 - $1.9650 Monterey Jack 10#: $1.7125 - $1.8725 Process 5# Loaf: $1.4275 - $1.6850 Swiss 6-9# Cuts: $2.7075 - $3.1375

FOREIGN -TYPE CHEESE - NOV. 20: German cheese production is steady. Despite lower supplies availability, cheese output cannot be augmented. Therefore, spot sales are very limited most of the time. The sliced cheese market is seeing a good demand from grocery stores and the industry. Demand from within the European Union is consistent with sellers’ expectations. Lower cheese prices coupled with a weaker euro exchange rate continue to stir up the sales of cheese to global customers. Semi-hard cheese prices have somewhat dropped and are said to be inconsistent. However, the decline in prices has come to a halt

Selling prices, delivered, dollars per/lb: Imported Domestic Blue: $2.6400 - 5.2300 $1.9075 - 3.3950 Gorgonzola: $3.6900 - 5.7400 $2.4150 - 3.1325 Parmesan (Italy): 0 $3.2975 - 5.3875 Romano (Cows Milk): 0 $3.0975 - 5.2475 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 $3.1475 - 3.4700 Swiss Cuts Finnish: $2.6700- 2.9300 0