Cheese
US cheddar exports are record high
Europe
Summer demand of mozzarella has set in
The cheese prices in the EU have increased in the past month, due to declining milk solids because of dry weather and rising demand for mozzarella. This even created a brief period of panic for mozzarella buyers but this has now subsided. Gouda prices appreciated as well and both types of cheese are now priced at EUR 4300 ex works for spot deals. Some buyers are eager to cover Q3 demands already but they have to pay a premium of EUR 50-100. Gouda availability is good so a slight relaxation in price may occur, as quite a lot of cheese produced during the flush still has to find a home. The cheddar market is a little softer, as producers in Ireland and the UK still carry significant inventories. The average price is now EUR 4570 ex works. In the next 8 weeks cheddar production will continue to be quite strong and only during August the lower milk output will allow for other valorization decisions.
Americas
Export demand gives local market a boost
The cheddar prices in the US are trending a little higher. Colored blocks are around USD 1.93/lb (4255/t), barrels around USD 1.85/lb (4080/t) and exportable white cheddar around USD 2.02/lb (4465/t), all ex works. Good demand, particularly from export destinations, lies at the core of this increase and the April cheese exports are at record levels. Cheddar demand is particularly strong, but other types of cheeses are also popular. Now that the export cheddar has crossed the USD 2/lb mark, export orders are slowing down a little, but it is clear that there are no better deals to be found in other origins. Domestic demand is about flat in total, with food retail slightly higher and food service a little lower. As a result the US cheddar market has reached a certain balance and going forward we expect price movements to be dictated by new supply coming online or demand returning to growth domestically. The new cheese plants have started operating but they are slowly ramping up in order to sort out operational issues.
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