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Buckeye Dairy News : Volume 2 Issue 5
Cheese Inventories Dip - Cheese Prices Roar!
Holy Hot Cows! High heat and humidity throughout most of the United States is slowing the torrid pace of milk production this summer. The latest USDA July 15 milk production report shows production gains, while still high, are off in most of the high producing states. In the 20 state total overall milk production for June was up 3.4% over last year. Out West, for the month of June, California up 9.0%, Arizona up 5.2%, Idaho up 8.6%, New Mexico up 6.3% and Washington up 2.2%. Only Texas posted a decline of 1.7%. Closer to home, Wisconsin production was up 2.1%, Minnesota up 2.3%, New York 3.0%, Pennsylvania up 2.7%. Ohio posted an increase of 1.3% on the strength of more output per cow but fewer cows.
The Cheese Market is all the Rage in this market!
The current market is being driven by inventory concerns in the cheese market. According to the latest USDA Cold Storage report, inventories of American cheese declined in June.Demand for cheese is strong and those that have it are hanging on to it - confident that the price will continue to rise for the present. Heat and humidity are cutting cheese yields at the plant and will continue to do so through July. Those in the know are suggesting that cheese prices could rise has high as $2.00 on the Chicago Mercantile Exchange. The July 23rd Dairy & Food Market Analyst reports a cheese price high between $1.80 and $1.90 is very likely over the next 45 days.
Look for the bang in milk prices, but be alert for the bust!