A little nudge higher in the cash cheese market on Wednesday prompted the Class III traders to jump in on thoughts the market may have bottomed-out. Barrels on the Chicago Mercantile Exchange increased one-half cent to $1.4775 per pound while blocks increased three-quarter cent to $1.50 on six sales and two unfilled bids. Tuesday’s World Agricultural Supply and Demand Report had a slight increase in projected milk production this year but more than enough demand to push cheese price estimates higher for the year, that seemed to be enough to push cheese higher and Class III futures to post their biggest single-day gains in ten months.
The weather helping the markets, a couple of big snowstorms in the eastern United States have increased Class I demand; Dairy Market News says retailers scrambled to restock shelves in between storms. Meanwhile, getting milk from the farm to the processing plants has been a challenge in the area; some plants have staff on hand round-the-clock so truckers can unload whenever they can get to the facility. There are reports of some milk being dumped and some bottling plants shutting down last weekend during the storm.
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