AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE

WHOLESALE CHEESE MARKETS

NATIONAL - JUNE 4: The cheese market tone remains strained this week. Contacts view the current barrel-over-block price with some consternation, as historically block prices tend to maintain a few cents up to a dime above barrel prices. The potential of barrel prices sliding down to the more typical price arrangement looms. Cheese production is busy with the current availability of milk. Spot milk prices were $6 to $5 under Class in the Midwest. Cheese production and cheese supplies are ahead of demand, according to contacts.

NORTHEAST - JUNE 9: Milk volumes are aplenty for strong cheese production. Cheddar operations are receiving a stable amount of milk, keeping intakes near capacity. Also, Mozzarella and Provolone production schedules are full. Cheese inventory levels are steady to growing. Foodservice demands have steadied a bit. Some foodservice outlets are not ordering additional cheese supplies at this time. Retail cheese sales are relatively unchanged from a stable undertone. Customers are purchasing a variety of cheese supplies for grilling.

MIDWEST AREA - JUNE 9: Cheese makers are busy in the region. Some are reporting six- and seven-day work weeks. Retail cheese demand varies across the spectrum, from slow to very busy. Interestingly, although barrel markets are maintaining more stability than blocks, some barrel producers are saying they have some extra loads available, but nothing too concerning regarding availability. Although temperatures have recently begun to signal summertime in the upper Midwest in the past week, milk availability levels suggest spring is not yet over. Spot milk prices remain at similar discounts to last week and cheese plant managers are turning away offers. Cheese market tones are indicative of growing nationwide availability, particularly on the block market.

WEST - JUNE 9: Retail and foodservice demand for cheese has held steady here.

Cheese block prices have fallen by $0.0475 since last week, while barrel prices are up $0.0075. Lower market prices have, reportedly, led to increased demand for cheese to export, with contacts reporting a notable demand to Asian markets. Some contacts report difficulty in obtaining transportation and shipping supplies causing delays to loads as well as increased freight costs. Production of cheese is strong in the region as producers are running full schedules to utilize available milk. Cheese is available for spot purchases.

FOREIGN -TYPE CHEESE - JUNE 9: The overall situation for Western European cheese is steady to slightly higher demand. There is still plant capacity to make more cheese.

Extra milk is generally going into cheese in Western European locations with multiple dairy product manufacturing options. Export demand is strong. Some deliveries have slowed due to shipping factors.