Market News

A “curious, calm” market

Cash cheese and butter held steady on the Chicago Mercantile Exchange on Wednesday while nonfat dry milk increased 1.75 cents. March and April Class III futures were a little lower while the May through February 2015 contracts were a little higher.

Dairy Market News describes the Midwest cheese market as in “a curious calm position.” There is a lot of milk being produced, there is a lot of cheese being made and because prices are steady, there is a lot of cheese being purchased for inventories, retail sales and aging programs.  What makes the situation even more “curious” is that the spring flush is not too far away and yet buyers do not seem interested in waiting for what usually delivers lower prices.  The situation is summed-up as: “In the Midwest, if you want cheese you can find it and if you make cheese you can sell it.”

Pretty-well the same situation in the Northeast and the West; strong milk production, cheese plants are running seven-day schedules, inventories are building and retail and food service buyers are buying.

Butter production is gearing-up as Passover and Easter approach.