AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE
WHOLESALE CHEESE MARKETS
NATIONAL - DEC. 3: Some cheese market contacts relay that the Omicron variant has not yet deterred restaurant sales. Foodservice demand remains firm in the Northeast.
Cheese makers are working through still-available holiday milk surpluses, although staffing shortages remain at the forefront of management concerns. Western contacts say foodservice and retail demand are very healthy ahead of the holiday season. They also sayport congestion has worsened in recent weeks. Cheese market tones are slowly improving.
NORTHEAST - DEC. 8: Northeastern milk production has leveled off somewhat this week, but cheese makers are generally receiving adequate supplies to maintain active production schedules. Cheese inventories are available to meet steady to stronger customer orders across sectors. Market participants expect upcoming celebrations will keep seasonally elevated retail cheese sales lofted for a few more weeks. Once the holidays are in the rearview mirror, however, contact forecasts are varied. Foodservice demand is fairly steady overall, though recent reports suggest that news of the Omicron variant may be contributing to reduced dine-in numbers at restaurants in some locales.
MIDWEST AREA - DEC. 8: Cheese
makers say spot milk offers are quiet, as milk prices have shifted
higher after the holiday and post-holiday influx of spot milk. Even as
multiple plants in the region are closed for maintenance, others are
running busily. Staffing shortages, at least according to some plant
managers, have slowly but surely begun to improve. Cheese demand is
busy, meeting seasonal expectations. Some plant managers say they are
likely not going to catch up on orders until the onset of 2022, when
demand is expected to settle. Cheese inventories are available here and
there for spot market movements, but inventories are not overly
concerning. Cheese market tones remain uncertain, but they are slowly
gaining momentum as barrel prices edge higher to meet mostly steady
block prices on the CME.
WEST - DEC. 8: Demand
for cheese in retail markets is steady. Foodservice demand is,
reportedly, trending higher in the West. International demand for cheese
is strong; contacts note steady purchasing for export to Asian markets.
Port congestion and a shortage of truck drivers are causing delays to
loads of cheese. Spot purchasers say that cheese barrel inventories are
tightening, while block spot availability is unchanged. Milk is
available for production in the region, allowing cheese producers to run
busy schedules.
FOREIGN -TYPE CHEESE - DEC. 8: Most
anticipated January cheese production is already scheduled in Germany
and France. With production as planned, some potential buyers have been
unable to finalize contracts due to the lower than desired volumes
planned.
Current
production from manufacturers is committed. In fact, the order of the
month is cuts and deletions from contracts already on the books. There
is not enough cheese to satisfy all buyers. This situation is expected
to continue at least through the first quarter of 2022. The result is
firmed prices for buyers of cheese from Western Europe. Manufacturers
hold the cards during negotiations.