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Cheese prices up over last week

Cheese prices have gone up recently, and as of Monday, barrel prices exceeded block prices again.

Market advisor Mike North with Ever.ag says barrel prices getting above block prices is becoming more common, but he says for both, prices are caught in a price range where neither buyers or sellers get what they want. “We find the buyers are supremely interested in cheese that’s, you know, pricing near $1.60. Sellers are very interested in participating when prices are near $1.80.”

North says the cheese market has made some recent moves favoring the sellers. “We took blocks up seven and a half cents over the course of the last week. We’ve taken the barrel up twelve cents, and ultimately just kind of back-testing this $1.80 zone.”

North says the cheese markets have been tugged from both directions. “Good demand is essentially being met by a growing supply. As we talk about the dynamics of that, it’s the perfect setup for this sideways action that we’ve been observing.”

North says little by little each month, producers are clawing back some of the production deficits from 2024 with a smaller herd but higher milk components, creating larger stocks of dairy products. 

As of Wednesday’s trading, Cheese blocks rose to $1.82 and barrels rose to $1.80 at the Chicago Mercantile Exchange.