The Class II, III and IV prices all posted double-digit gains in August.

The Class III price broke the $11 mark in August, following a retreat below $11 in July.

According to the USDA’s announcement of class prices on Sept. 1, the Class III price climbed 14 cents — to $11.06 for August. However, that is still $2.54 less than a year ago.

The Class II and Class IV prices also reversed course in August. The Class II price gained 33 cents, which put it at $11.16 for August. The Class IV price was announced at $10.64, a 43-cent increase versus July. One year ago, the Class II and IV prices were $13.95 and $13.44, respectively.

Strong demand helped drive cheese prices higher during August. The USDA’s latest commercial disappearance figures, released Aug. 30, show year-to-date American cheese use was up 6.3 percent through June.

Strong cheese consumption gave a welcome boost to cheese prices during August. And as of Sept. 1, the block cheese price at the Chicago Mercantile Exchange stood at $1.3475. The barrel cheese price, although down 2.25 cents versus Aug. 31, was still at $1.3125.

Despite strong cheese demand, these cheese prices may not last. The USDA’s latest “Dairy Products” report, released Sept. 1, showed strong cheese production in July. Total cheese production in July was up 3.9 percent versus a year ago. This news could temper further gains in the cheese market.