October 22, 2019

Cheese Prices Continue To March Higher

 |  By: Know Your Market

Cheese continues its march higher Tuesday. Following huge leaps higher on Monday, we saw Cheddar blocks gain 3 ¼ to $2.10 ¼ with 7 loads trading, Cheddar barrels gained 5 ¼ cents to $2.10 ½ with no loads trading hands again. The cheddar average is over $2.10 per lb. and we continue with a slightly inverted block/barrels spread at a quarter of a cent. 

Butter fell 3 cents to $2.09 per lb. with 4 loads moving. Grade A Nonfat dry milk was unchanged with 4 loads trading hands to hold at $1.16 ½, and dry whey gained a quarter of a penny to $0.28 ¾ per lb. with 10 loads moving hands. 

Class III milk lost some of its steam. October fell 1 to $18.65, November fell 8 to $19.10, and December fell 4 to $16.73 per cwt.

Class IV milk reacted similarly. October fell 2 cents to $16.43, November fell 9 to $16.75 and December fell 13 cents to $16.73 per cwt.  

The September cold storage was released at 2 p.m. on Tuesday. The biggest story again being butter, though inventories dropped 1% from August, and down 7% from 2018, it is the smallest decrease month over month in the last 70 years. We lost just 2.2 million lbs .from storage compared to the 5-year average of 27 million lbs. 

Total natural cheese stocks rose slightly from August’s levels, but down slightly from 2018 at 1.37 billion lbs. in cold storage, 6.4 million lbs. less than August.