News

Are cheese prices too high?

Cash cheese prices moved another two-cents higher on the Chicago Mercantile Exchange on Wednesday, once again a couple of unfilled bids setting the market.  Barrels closed at $2.30, blocks at $2.34 per pound.

The high cheese prices are apparently prompting some push-back. Dairy Market News says some cheese manufacturers are pulling-back on production in response to reduced sales. Grocery stores are apparently reluctant to buy at these prices and some food service outlets are reducing or removing cheese from menu items. Cheese makers do not want to be stuck with extra inventory at these prices.

National Dairy Products Sales Report for the week ending January 25th: cheddar cheese blocks averaged $2.14 per pound up 6.9 cents from the previous week. Blocks increased 10.7 cents to average $2.15, butter was 4.5 cents higher at $1.67 per pound; nonfat dry milk 0.8 cents higher at $2.04 and dry whey increased 1.3 cents to average 60.9 cents per pound.