Stability and Higher Prices Revealed in Latest Cheese Market News
The Cheese Market Report for August 25th – August 31st, 2023
The summer of 2023 brought stability to the cheese market in the Northeast, Midwest, and West. As temperatures start to cool, the cheese market is looking just as healthy. According to the U.S. Department of Agriculture and CME (Chicago Mercantile Exchange), barrel and block cheese prices are headed upwards. Plant managers in the Northeast say higher milk processing orders and persistent labor shortages are reducing cheese production in the region. This could be a reason why cheese inventories remain steady in the Northeast, while in the Midwest they are described as balanced. In the West, domestic demand for cheese is strong to steady, while exports are quieter overall.
Cheese Prices and More
Between August 25th and August 31st, the spot milk prices for Class III dipped from $.50 over Class in the Midwest. Barrels closed at the CME on the 31st at $1.8000 and 40-pound blocks closed at $1.9450. The weekly average for barrels was $1.8045 (-0.0090) and blocks, $1.9470 (-0.0680). Throughout the week, cheese makers in the Midwest experienced downtime at their plants to do updates.
The Cheese Environment in the Northeast
Cheese sellers in the Midwest report similar demand levels for mid and late August cheese compared to the year before. However, it’s in the Northeast where Cheese producers reported stronger demand for cheddar than any other American type cheese. Consumers in the region are also in major need of mozzarella cheese for food service.
The Cheese Market Report for August 25th – August 31st, 2023 provides us a glimpse into the current market and gives us a better understanding of the possible impact of future changes. With elevated demand in the Northeast and lower cheese production rates due to higher milk processor orders and labor issues, it’s likely we will continue to see higher prices in the future. To stay up to date on the latest Cheese Market News, follow our LinkedIn page (https://www.linkedin.com/company/otter-foods) to get notifications as soon as new articles come out.