Cheese Exports Are Booming
- amy55735
- Jun 5
- 2 min read
The T.C. Jacoby Weekly Market Report Week Ending May 30, 2025
Even after the runup, U.S. cheese in the cheapest in the world, and exports are booming. The trade is searching for the price at which international buyers start to look elsewhere or simply make do with less. But prices may already be high enough to deter domestic demand. U.S. cheese consumption held steady in 2024, and it was down 0.8% year over year in the first quarter. With Cheddar north of $1.90, retailers will keep the cheese case stocked, but they probably won’t feature any promotions.
The cheese markets are searching for the ceiling. CME spot Cheddar blocks rallied 7.75ȼ this week to $1.9475 per pound, and they established a fresh seven-month high. Barrels climbed 1.75ȼ to $1.87. Such lofty values were wholly unexpected earlier in the year, when the trade was focused on the impact of new cheese production. But start-up issues have reduced the volume of fresh cheese that meets CME specifications for delivery to Chicago. USDA’s Dairy Market News reports that Western supplies of spot cheese are “extremely tight.” Even after the runup, U.S. cheese in the cheapest in the world, and exports are booming. The trade is searching for the price at which international buyers start to look elsewhere or simply make do with less. But prices may already be high enough to deter domestic demand. U.S. cheese consumption held steady in 2024, and it was down 0.8% year over year in the first quarter. With Cheddar north of $1.90, retailers will keep the cheese case stocked, but they probably won’t feature any promotions.
June 2, 2025
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