07/19/2023
🧀 Cheese Market Update 🧀
🥛 Milk Supplies Tighten as Cheesemakers Report Active Manufacturing 🥛
The European cheese industry faces challenges as farm-level milk outputs continue to decline seasonally, putting pressure on milk supplies for cheesemakers. However, there's a silver lining, as industry sources report a slight increase in milk production compared to the same period last year.
🧀 Steady Demand for Varietal Cheeses 🧀
Amid tightening milk supplies, cheesemakers are reporting active manufacturing and steady demand for varietal cheeses from both food service channels and retail. Notably, cottage cheese and cream cheese sales have shown remarkable strength in the market.
💼 Spot Milk Range for Central Region Cheesemakers Expands 💼
Cheesemakers in the Central region have experienced growth in the spot milk range this week. However, as you move farther south, milk availability becomes tighter. Prices for milk in the Central region range from $11 under to flat Class, compared to last year's prices during this week, which were $3 to $1 under Class III.
🌧️ Weather Woes Impacting Northeast Milk Volumes 🌧️
In the Northeast, milk volumes remain steady to lower due to reports of milk being discarded amid rain and flooding. However, some cheese plant managers have successfully redirected milk intended for Class III manufacturing from the Northeast to other regions.
🌟 Midwest Demand on the Rise, Capacity Limits Reached 🌟
The Midwest is experiencing hearty demand, especially for retail cheddar and American style cheeses, leading to increased orders. Despite available milk supplies, cheesemakers are reaching their capacity limits to meet customer needs. Barrel and cheddar manufacturers in the Midwest are working near capacity and striving to fulfill customer demands.
🍕 Impact on Mozzarella Processors in the West 🍕
Mozzarella processors in the West have noted slower pizza sales, affecting their markets. However, the overall market tones have shown relative strength this week. Milk handlers and cheesemakers anticipate increasing milk prices in the near future due to upcoming limits on milk availability and customer requests.
📈 CME Closing Prices 📉
On the CME, barrels closed at $1.3925, and 40 # blocks at $1.4800. The weekly average for barrels is $1.4005 (+0.0499) and blocks at $1.4860 (+0.1110).
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