News

USA: Cheese purchasing causing erratic dairy markets

United States
Market & Price Trends
Published Feb 22, 2024

Tridge summary

Volatile cheese prices have been a significant factor in future markets, according to dairy market analyst Sarina Sharp. The low prices in January attracted new importers, reducing cheese inventories and maintaining a price floor. However, Sharp does not anticipate these prices to remain at levels that would benefit dairy producers. She also highlighted the growing Mexican economy and tourism sector as a positive influence on U.S. cheese prices, with Mexico purchasing 16% more nonfat dry milk/skim milk powder and 20% more cheese than in 2022.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

A dairy market analyst says volatile cheese prices have been the main driver for future markets recently. Sarina Sharp with the Daily Dairy Report tells Brownfield, “January prices got very, very low and then they shot higher.” “That’s because they got low enough that we attracted a lot of new importers to look at U.S. cheese rather than cheese out of Europe,” she explains. She says lower cheese inventories following that wave of purchases, combined with lower milk production in the U.S. and Europe, is helping to keep a floor on prices. “I don’t think that we can stay with cheese prices at levels that are going to be exciting to dairy producers, but I do think that we probably don’t have to go back down to that $15, which is so, so painful,” she forecasts. Sharp says a growing Mexican economy and tourism sector have been a saving grace for U.S. cheese prices. “Last year, Mexico saw foreign direct investment, ...
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