Cheese and Dairy Markets
7/18/22
Highlights
BUTTER: The weekly average for Grade AA decreased -.00005/lb.
CHEESE: The weekly average for blocks decreased -.0148/lb.
Cream demand is strong throughout the West as butter and ice cream makers are pulling on supplies. Spot purchasers say cream inventories are tightening, but that they are able to find loads to meet current production needs. Demand for butter in retail and food service markets remains below some producer expectations. Contacts report that lower prices for butter from the GDT event on July 5th have contributed to softening export demand. Bulk butter demand is steady as some spot purchasers are concerned that butter inventories are tighter than last year. Butter makers are running busy schedules, though some plant managers report staffing shortages are limiting their ability to run at capacity. Western bulk butter overages range from 2.0 to 15.0 cents above the CME market value
Milk is available for cheese makers to run busy schedules in the West. Cheese production is steady throughout the region, though some plant managers say labor shortages are preventing them from running at capacity. Spot purchasers say inventories of barrels and blocks are available. Demand for cheese is steady in both food service and retail markets. Some contacts report that domestic sales are below expectations. Strong export demand is present in the region. Stakeholders continue to relay sales of cheese to Asian customers for shipment in early Q2 of 2023.