Cheese utilization is sputtering
Source: The DairyNews
The cheese market faces headwinds as CME block Cheddar closes at $1.52 per pound, down 6 cents for the week and 45.75 cents below the previous year's figures. Barrels also saw a decline, finishing at $1.45, marking a 10.50 cents drop and a 29 cents decline compared to a year ago.
Sales for the week included 9 loads of block and 27 of barrel, with 11 barrel loads on Friday alone. Blocks hit their lowest since July 10, dropping by 6.75 cents on Monday, but recovered a quarter-cent on Tuesday, reaching $1.4550. Barrels were down 4.50 cents on Monday, with 13 loads sold, inching up by half a cent on Tuesday to hit $1.41.
Midwest cheesemakers report steady production due to available milk, with spot milk prices ranging from $4-under to $1-over Class. Despite some offering milk below Class ahead of the year-end holidays, volumes are not excessive.
While Western retail cheese demand remains steady, food service shows moderate activity. Domestic cheese's improved price competitiveness has not yet translated into robust export demand.
In the butter market, CME butter fell to $2.46 per pound, its lowest since June 30, closing Friday at $2.49, down 18 cents for the week and 36.50 cents below a year ago. Despite three weeks of gains, butter dipped on Monday but gained 5.75 cents on Tuesday, reaching $2.6050.
Central cream is noted as "looser," with some butter makers stating it is "plentiful." Plants report strong to steady production, while Western cream volumes improve along with strengthened average butterfat levels in milk.
Grade A nonfat dry milk closed Friday at $1.16 per pound, half a cent lower for the week and 19 cents below a year ago. Dry whey remained unchanged at 39.50 cents per pound, while GDT recorded a 2.3% increase in the weighted average, with butter leading the gainers.
The USDA's latest data reveals a slowdown in cheese utilization, with October figures showing a modest 0.8% increase from the previous year. HighGround Dairy notes that domestic consumption led the increase, particularly in non-American cheese. Other dairy products like butter, nonfat dry milk, and whey experienced varied utilization trends. Fluid milk sales saw a 1.0% increase in October, marking the first gain since May.
Midwest cheesemakers report steady production due to available milk, with spot milk prices ranging from $4-under to $1-over Class. Despite some offering milk below Class ahead of the year-end holidays, volumes are not excessive.
While Western retail cheese demand remains steady, food service shows moderate activity. Domestic cheese's improved price competitiveness has not yet translated into robust export demand.
In the butter market, CME butter fell to $2.46 per pound, its lowest since June 30, closing Friday at $2.49, down 18 cents for the week and 36.50 cents below a year ago. Despite three weeks of gains, butter dipped on Monday but gained 5.75 cents on Tuesday, reaching $2.6050.
Central cream is noted as "looser," with some butter makers stating it is "plentiful." Plants report strong to steady production, while Western cream volumes improve along with strengthened average butterfat levels in milk.
Grade A nonfat dry milk closed Friday at $1.16 per pound, half a cent lower for the week and 19 cents below a year ago. Dry whey remained unchanged at 39.50 cents per pound, while GDT recorded a 2.3% increase in the weighted average, with butter leading the gainers.
The USDA's latest data reveals a slowdown in cheese utilization, with October figures showing a modest 0.8% increase from the previous year. HighGround Dairy notes that domestic consumption led the increase, particularly in non-American cheese. Other dairy products like butter, nonfat dry milk, and whey experienced varied utilization trends. Fluid milk sales saw a 1.0% increase in October, marking the first gain since May.
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