News

Cash cheese keeps nudging higher

Cash cheese continue to nudge higher on the Chicago Mercantile Exchange; Ag Market News says buyers are searching for cheese. One manufacturer says buyers let their inventories decline in recent months in anticipation of lower prices…but retail inventories are low and they need to buy now prompting what some are describing as “panic buying”. On top of that, spot loads of milk are either unavailable or priced beyond what cheese makers are willing to pay. Some plants are using nonfat dry milk to extend the vats. Some buyers are starting to secure supplies for the holidays. Export interest remains strong as U.S. prices are competitive on the world market right now.

Milk production in the Central and Eastern U.S. is steady to slightly increasing and components are improving but overall milk supplies are tight. Class I demand is strong; Florida imported 178 loads this week. California milk production is nudging higher along with components as they recover from the September heat wave. In the Pacific Northwest, production is following usual seasonal declines, Class I demand is steady and Class II plants are gearing-up for the holidays.

The Base Class I Price for November is $20.20 per hundredweight, up $1.00 from October. The Base Skim Milk Price for Class I for November is $14.86 per hundredweight up 31 cents from October.