Cheese
US and EU prices take a jump
Europe
Price appreciation for all cheese types atypical for the time of the year
In the past four weeks growing concerns over milk availability pushed the prices for all major EU cheese types up. Quite a few buyers could not believe their eyes when they returned from their holidays and found prices to have increased by more than 10% in just a few weeks. With retail negotiations for the Nov-Apr period about to start, it is likely that the buyside will try to postpone purchases to some extent and hope that the market pressure will subside. At the beginning of September, Gouda for prompt delivery is traded at EUR 4650 ex works and Q4 prices are EUR 150 higher. Cheddar in Ireland and the UK changes hands at EUR 4950 ex works and it appears that the buyside is a little more comfortable about their stock positions than in the Gouda market. Eastern EU Cheddar is a bit tighter and priced some EUR 20/t higher. The Mozzarella market also experiences a tight supply situation and the price for prompt delivery has risen to EUR 4600 ex works with a EUR 200/t premium for Q4, for which period there was remarkably high demand.
Americas
The market turned very dynamic in August
The US cheese market was very dynamic throughout the month of August. Domestically the market tries to assess the impact of Avian Flu tightening milk supply in California and cheese production being seasonally low. On the demand side however most of the market dynamics originated internationally as the end of holiday rush in the US was hardly noticeable this year. International buyers however, are turning towards US Cheddar supply since the EU is out of the market due to very tight local supply caused by Blue Tongue amongst others. 30-Day Cheddar is priced in the range of USD 2.18-2.28/lb (4300-4400/t) ex works. The current challenging market dynamics may sustain for the entire pre-holiday period until mid-November as milk supply seems unable to cool the market down in the near term.
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