Cheese Prices Take a Dramatic Change Higher
Since the low was set about a month ago, block cheese has increased 47.25 cents and barrels have increased 33.25 cents by the close of spot trading July 21st. The last time we saw a movement of this magnitude over such a short period of time was in late 2020 into early 2021.
The seasonal purchasing of cheese for demand later in the year generally begins in mid-summer and this year it began with a vengeance. After nearly a steady decline of cheese prices since March, prices quickly moved higher as buyer interest increased as prices moved higher. This brought more buyers in from the sidelines as they needed to purchase cheese before prices increased further. This resulted in a leapfrog effect similar to what you see at auctions when a few individuals want to purchase a certain item and try to outbid each other. It does not make any difference that there is sufficient supply currently available. The fear of being left behind takes over with buyers needing to get some purchases on the books.
July 26, 2023