Asian demand for cheese is strong, lacking elsewhere

MIELKE, from pg. 13 down 1.1 percent after dropping 2.4 percent on Feb. 21.

StoneX says GDT 80 percent butterfat butter price equates to $2.1678 per pound U.S., down a penny after gaining 7.8 cents on Feb. 21. Chicago Mercantile Exchange butter closed March 10 at $2.3325. GDT cheddar, at $2.0452, was down a whopping 26.2 cents after gaining 4.8 cents last time, and compares to March 10’s CME block Cheddar at $1.78. GDT skim milk powder averaged $1.2424 per pound, down from $1.2559, and whole milk powder averaged $1.4865 per pound, up from $1.4806. CME nonfat dry milk closed March 10 at $1.1750.

With less volume available for purchase, many regional purchases were lower than the last GDT, says Dustin Winston. However, “North Asian purchases, which includes China, were higher than last year as the region continues to stay above 50 percent market share since returning to this trend in February. Middle East and European purchases were also larger than last year.”

Cheese prices converged the first full week of March with the cheddar blocks falling to $1.78 per pound, down 17 cents on the week, lowest CME price since Sept. 6, and 41 cents below a year ago. The barrels climbed to a March 10 finish at $1.77, up 19.5 cents on the week, highest since Jan. 11, 24 cents below a year ago, and just a penny below the blocks.

Sales for the week totaled four cars of block and 50 of barrel.

Milk remains readily available for Midwest cheesemakers, says Dairy Market News, and spot milk prices reached a recent low, as $11 under Class III spots were reported. Milk offers are reportedly abundant and cheese production is as full as plant managers can make it. Cheese demand is reportedly fair in the region and stores are not getting ahead of processors. A number of varietal cheesemakers say orders are keeping storage at light to medium capacity.

Domestic cheese demand is strong to steady by Western retail and food service purchasers and a steady pace continues for finishing second quarter bookings. Some report sold out inventories for contract sales into June. Export demand remains mixed, with strong Asian demand, while others note soft demand. Barrel sales continue to outpace blocks however barrel inventories remain heavier. Cheese production is strong as plenty of milk continues to be available, though more milk is shifting into hardItalian type and aged-cheese schedules.

Cash butter closed March 10 at $2.3325 per pound, down 1.25 cents on the week and 37.75 cents below a year ago. There were three sales reported for the week.

Central butter makers say cream remains ample but slightly lower than previous weeks. Cream cheese processors are pulling slightly on the stores of cream but regional churns are finding cream locally and from the near-Western states. Spring holiday demand has picked up, as some plants relay food service and retail demand is meeting expectations. Market tones are “unassured,” says Dairy Market News

Cream is plentiful in the west but balanced to ample for needs. Butter production is steady. Retail demand is light to weak. Some say below forecast sales for the upcoming spring holiday season are contributing to inventories remaining heavy.

CME nonfat dry milk fell to $1.1650 per pound on March 7 (the lowest since March 24), but closed March 10 at $1.1750. This is down a quarter-cent on the week, and 66.5 cents below a year ago, on 11 sales.

Dry whey finished March 10 at 44.25 cents per pound — a quarter-cent lower and 31.5 cents below a year ago, with three sales reported for the week at the CME.

In politics, the National Milk Producers Federation, Consortium for Common Food Names, U.S. Dairy Export Council and a coalition of others prevailed in an ongoing battle to protect the right of producers to use generic names in the United States.

The U.S. Court of Appeals for the Fourth Circuit upheld prior decisions of the U.S. District Court for the Eastern District of Virginia and of the U.S. Patent and Trademark Office’s Trademark Trial and Appeal Board in finding “gruyere” to be a generic term for a variety of cheese.

Meanwhile, “The U.S. Food and Drug Administration’s unwillingness to limit dairy terms to true dairy products makes passage of the Dairy Pride Act more necessary than ever,” says Sen. Tammy Baldwin (D-Wis.) in a podcast this week.

“They’re going to continue to allow mislabeled imitation products to be on the market,” Baldwin said. “Wisconsin farmers work so hard to meet the FDA standards of nutrition and quality. They can’t put the word ‘milk’ on the side of a carton of milk unless they meet those standards. It is not fair for plantbased products to be able to say they’re milk when they don’t meet those standards.”

Also, a bipartisan group of seven senators and 28 representatives called on the USDA to abandon a proposal to reduce the amount of milk and dairy provided to mothers and children enrolled in the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC. The USDA’s proposal would eliminate as much as three gallons or more of milk per month for WIC mothers and their children, a cut that members of Congress say will have “unintended and significant negative effects.”

Lee Mielke is a syndicated columnist who resides in Everson, Wash. His weekly column is featured in newspapers across the country and he may be reached at lkmielke@juno.com. v