Cheese
Mixed picture
Europe
Market trend differs per cheese type
The cheddar market in the EU has been volatile. Until 2 weeks ago the EU was competitive into the Middle East, but the US is now winning most deals there. EU volumes of cheddar are tightening, as other EU cheese types are generating better margins. The current price is EUR 3400 in Eastern EU and Irish curd is at EUR 3350 for Sept and Q4 delivery. Gouda prices climbed by EUR 200 to EUR 3250 and Q4 prices are EUR 150/t higher. The supply of Gouda tightened when SMC prices peaked because of hot weather and some processors decided to sell SMC instead of make cheese. The outlook is good as consumption tends to rise in winter months. The opposite is true for mozzarella, which is a typical summer cheese. The EU market is becoming a little oversupplied now and at the current price of EUR 3450 for Aug/Sept delivery the spread with Gouda is narrowing. All prices are ex works.
Americas
Strong mozzarella export performance
Domestic demand for cheddar in the US remains flat, food service has been a little quiet and retail demand was OK. Export performance for cheddar was decent in Q2, but the outlook for Q3 exports is a little less bright as competitiveness vs the EU is likely shrinking. The US needs decent exports or stronger domestic demand for prices to increase. The price for cheddar has been volatile in the past month and has moved in a range of USD 1.50-1.65/lb (3300-3635/t) ex works, with buyers stepping in when prices move towards the lower end of the range and stepping away on the upper end. There is currently no incentive to go for further forward deals and buyers and sellers remain quite spot oriented. Mozzarella exports continue to be impressive as these were even near record high in June. The outlook for Q3 export performance is good for mozzarella.
Need market insights or sourcing Cheese?
Speak with your local Interfood specialist
Our team closely monitors global dairy markets and works with a wide network of milk suppliers. Whether you need market insights or reliable milk supply, Interfood specialists are ready to help you navigate the market.
Contact us
More insights
If you're interested in Cheese, you may also like these topics:
