Cash cheese ends April and begins May in a stronger than expected position. The Cheddar blocks closed Friday, May 1, at $1.61 per pound, unchanged on the week but 46 cents below a year ago when they tumbled 14 cents to $2.07 per pound. The Cheddar barrels finished at $1.6175, down a quarter-cent on the week and 43.75 cents below a year ago when they rolled 16.5 cents lower, to $2.0550. Four cars of block traded hands last week and none of barrel. The NDPSR-surveyed U.S. average block price hit $1.5925, up 1.4 cents. The barrels averaged $1.6575, up 1.8 cents.
Has cheese put in a floor? Some believe that’s true, according to the April 24 Dairy and Food Market Analyst.
"Given the conversations we had at the Wisconsin Cheese Makers meeting (last) week, it feels like market sentiment is changing," editor Jerry Dryer wrote. "After being very bearish for some time, cheese makers and others gathered here in Madison, Wis., were less bearish. In fact, some were even bullish. While we don’t completely agree, several people told us the cheese market has put in a floor for the year and it will only move higher from here.
"We’re hearing two different stories from cheese makers: Some cheese makers tell us they can’t make enough cheese. Their plants are at full capacity with orders booked well into the future. This matches with what we’re hearing from traders; the cheese market is tight and some say it has tightened over the past couple of weeks.
"However, one major cheese manufacturer is arguing that prices should be significantly lower. He pointed at growing inventories, weak exports and increasing imports." To read more, write Matt Gould at MGould@DairyMarketAnalyst.com
Most Midwest cheese plants remain busy, pushed along by the higher volumes of milk being produced, reports Dairy Market News (DMN). The volume of plant production for several weeks is taking a personnel toll, leaving some cheese facility staff feeling "exhausted." Some extra barrel production was occurring last week, but less so than the previous week. Interest in Cheddar remains strong, but Italian varieties, while still receiving good demand, are closer to a desired balance. Most cheese manufacturers are satisfied with customer demand accommodating higher available seasonal milk supplies going into cheese.
Most cheese plants in the West have active schedules, and there is good demand for the output. Customers are still buying good volumes of cheese. The question is increasingly asked: Is current demand active or holding inventories of cheese for consumption later in the year? Whatever the answer, sales are strong, and that is enough to keep production schedules active. Recent demand spikes for barrels were taken as typical by some manufacturers who cite building inventories for the grilling season as a factor in higher seasonal demand for process cheese, made primarily from barrel cheese.
