Friday Morning Cheese Price Report

Some large cheese manufacturers continue to operate at full production
levels, with sales commitments running months ahead of production.  An
official of a fully scheduled multi-plant cheese manufacturer noted that
more milk is available, some milk due to production increases and some due
to lower Class I demand, but is not taken because cheese production is
already maxed out.  He commented “we can’t make any more cheese”.  There are
also some, but not many plant officials who say sales and production are
down due to high prices.  Overall, the majority of manufacturers continue to
have strong cheese sales and a number not already at full production have
taken extra milk this week to increase output.  Some manufacturers have also
moved barrels getting some age into the spot market to meet current cheese
demand.  Fat and protein tests are mixed, up in some instances but down in
others.  New cheese price highs were set early this week, and then backed
off from as of Wednesday’s close.  Blocks set a new high of $2.4325 on
Monday but retreated to $2.4225 at Wednesday’s CME close.  Barrels set a new
high of $2.3775 Monday but retreated to $2.3300 by Wednesday’s close.  Many
cheese sellers are not available to contact through normal methods this week
because they are in Las Vegas for an international pizza exposition, working
to sell even more cheese.  NASS reports that total U.S. February 2014
natural cheese stocks were 1.01 billion pounds, 94% of February 2013, and
even with January 2014.  January East North Central region (Wisconsin,
Illinois, Michigan, Indiana and Ohio) other cheese stocks were 93% of
February last year, and 99% of January 2014.  Regional February 2014
American cheese stocks were up over January more than national stocks, with
regional stocks being 106% of January in contrast with national stocks being
100%.  Regional February 2014 stocks were 82% of February 2013, while
national stocks were 95%.  U.S. Swiss cheese stocks ending February this
year, 26.8 million pounds, were 105% of January 2014 but 89% of February
2013.  Wholesale process cheese prices adjusted up $.0300, Swiss was
unchanged and the remaining listed varieties adjusted up $.0825.


Process American 5# Loaf                   : 2.4050-2.7650
Brick And/Or Muenster 5#                   : 2.7875-3.2125
Cheddar 40# Block                          : 2.4925-2.9100
Monterey Jack 10#                          : 2.7625-2.9675
Blue 5#                                    : 3.0550-4.0425
Mozzarella 5 – 6# (Low Moisture, Part Skim): 2.6325-3.5275
Grade A Swiss Cuts 6 – 9#                  : 3.0675-3.1850