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Looks like cash cheese has turned around

After steadily declining for a couple of weeks, prices have been increasing in the cash cheese market this week. Barrels went from $2.25 on April 2nd to $2.075 by April 10. They are now back up to $2.1875. Blocks went from $2.385 down to $2.165 and back up to $2.2225 during the same period.

National Dairy Product Sales Report for the week ending April 12: cheddar cheese blocks increased 1.6 cents to average $2.41 per pound. Blocks slipped 1.5 cents from the previous week to average $2.34. Cash butter increased 2.5 cents to $1.98, nonfat dry milk decreased 5.3 cents to $2 per pound while dry whey increased 0.1 cents to 67.2 cents per pound.

While milk production is increasing in the lower Midwest, the lingering winter is hindering production in Wisconsin and Michigan. More snow and cold weather across the Great Lakes this week means spring and summer will be delayed and so will the hay crop. Last year’s forage is of poor quality but producers will have to rely upon that for a little longer.

Even though cheese prices have backed-off a little they remain high, Dairy Market News says order patterns and order volume received by many cheese manufacturers leads them to believe that higher prices have been accepted as reality for the time being.

Export business remains strong; Cooperatives Working Together (CWT) has accepted 28 requests for export assistance from Dairy Farmers of America, Foremost Farms, Maryland & Virginia Milk Producers Association, Michigan Milk Producers Association, Northwest Dairy Association (Darigold), and Tillamook County Creamery Association to sell 5.340 million pounds of Cheddar, Gouda and Monterey Jack cheeses, 2.260 million pounds of 82% butter and 837,757 pounds of whole milk powder to customers in Asia, Central America, Europe, the Middle East, North Africa and the South Pacific. The product will be delivered April through October 2014.

Year-to-date, CWT has assisted member cooperatives in selling 46.132 million pounds of cheese, 34.163 million pounds of butter and 4.204 million pounds of whole milk powder to 29 countries on six continents.

 

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