Cheese Sales Surge Amid Export Gains, Butter Prices Dip
Source: The DairyNews
In Chicago on June 6, fresh cheese was prominently featured in the market, with barrel sellers particularly active. Buyers remained engaged, purchasing 11 lots — the largest single-day volume since mid-April. Despite this, cheese futures experienced a downturn, with the September contract declining by more than two cents. This follows two consecutive market declines, yet U.S. prices still appear too high to be competitive internationally. However, robust April cheese export data suggest that competitive pricing could significantly boost U.S. exports. The increase in fresh barrel offers at spot prices may signal an early shift in trade dynamics.
In other market movements, the butter price in Chicago dropped to $3.0500 per pound, a decrease of $0.0450, with one lot traded. The cheese block market also saw a dip to $1.8440 per pound, down $0.0150 with seven loads exchanged. Conversely, barrel prices rose to $1.9550 per pound, an increase of $0.0100, with 11 lots sold.
April proved to be another strong month for U.S. cheese exports, with 102 million pounds shipped, marking a 27% increase year-over-year, though down 7% from March. Mexico was a significant buyer, purchasing 38 million pounds, up 53% compared to April 2023. Despite high prices, U.S. butter exports also saw growth, with 5 million pounds shipped, a 23% increase year-over-year and a 13% rise from March.
The onset of summer heat is testing cow comfort across much of the U.S., impacting milk production and availability. Following the Memorial Day surplus, spot milk prices in the Upper Midwest increased, now averaging $0.50 under class, compared to -$3.25 last week, -$7.50 last year, and the five-year average of -$2.65.
Meanwhile, the corn and soybean markets recovered nicely from the previous day's poor close. Corn prices increased by over 10 cents, supported by strong export data and ongoing orders due to the drought in Mexico. Soybeans likely saw activity from foreign end users hedging their risks after a new tax law in Brazil created confusion among soy processors about their production costs and the feasible purchase price for cash beans.
April proved to be another strong month for U.S. cheese exports, with 102 million pounds shipped, marking a 27% increase year-over-year, though down 7% from March. Mexico was a significant buyer, purchasing 38 million pounds, up 53% compared to April 2023. Despite high prices, U.S. butter exports also saw growth, with 5 million pounds shipped, a 23% increase year-over-year and a 13% rise from March.
The onset of summer heat is testing cow comfort across much of the U.S., impacting milk production and availability. Following the Memorial Day surplus, spot milk prices in the Upper Midwest increased, now averaging $0.50 under class, compared to -$3.25 last week, -$7.50 last year, and the five-year average of -$2.65.
Meanwhile, the corn and soybean markets recovered nicely from the previous day's poor close. Corn prices increased by over 10 cents, supported by strong export data and ongoing orders due to the drought in Mexico. Soybeans likely saw activity from foreign end users hedging their risks after a new tax law in Brazil created confusion among soy processors about their production costs and the feasible purchase price for cash beans.
