Cheese News: Cheese Market Prices Tighten as Milk Supplies Wane
The cheese market has changed course this summer, largely due to tightening milk availability for cheese production. Many milk handlers have reportedly gone silent regarding offers and spot loads have been changing for higher costs. This has cheesemakers in the region concerned about their ability to meet incoming orders for cheese, especially those of pizza makers and mozzarella producers.
The impact of these changes is visible in the wholesale cheese prices. Midwestern prices have seen a slight dip in costs for Swiss cuts, but have risen for process and all other types.
CME Cheese Prices See Increase
The CME Group monthly average price for cheese barrels in August was 1.8190, a significant jump from July's 1.5404 figure. The same trend was seen in blocks, with the August average of 1.9752 up from July's 1.6209.
Wisconsin Cheese Prices at a Glance
At the start of the week (4th – 8th Sept 2023), prices for five pound units of Blue and Brick were between $2.4825 and $3.6925 and $2.2125 and $2.7800, respectively, in the Midwestern U.S. Prices for a 40-pound block of Cheddar ranged from $1.9350 to $2.4775, a 10-pound package of Monterey Jack from $2.1875 to $2.5350, 5-6 pounds of Mozzarella were between $2.0125 and $3.1000, Muenster 5 pounds between $2.2125 and $2.7800, and a 5-pound loaf of Process American from $1.8275 to $2.2950. Costs for 6 to 9 pound Swiss cuts ranged from $2.6425 to $2.7450 in the region.
The Wisconsin Wholesale Selling Prices: Delivered report will be ending for 1,000 – 5,000 pound mixed lots, with the 39th report of the period, during the week of September 25th, 2023. For more information or questions regarding this decision, contact Janet.Linder@ams.usda.gov, (608) 422-8588.
The cheese market has become increasingly tight due to heightened demand and shortages in milks supplies. This has seen Midwestern states raise costs for cheese wholesale in given areas, as is indicated in the CME group's prices.
If you would like to stay up to date with the latest news on the cheese market, follow our LinkedIn page https://www.linkedin.com/company/otter-foods to get notifications as soon as the articles come out.