Fundamentally, the cheese market has largely been in balance in 2015. Some key developments to watch include foodservice demand. Burger King, for example, reported its best performance in over nine years.
Trade ministers from 12 Pacific Rim nations head to Hawaii this week to tackle the tough decisions needed to finalize a trade deal that will free up global commerce and set common standards for nearly half of the world's economy.
After all the Class III futures price movement, the August contract settled at $16.28/cwt., up 34¢ on the week, despite Friday’s sharp losses. The 1H 2016 Class III pack stabilized last week, and now seems in a comfort zone.
Class III and Cheese futures shrugged off an arguably bearish Cold Storage report and turned higher. As if in some alternative universe, butter prices rallied yesterday. August butter was limit-up, with the deferred contracts not far behind.
On July 13, the U.S. average diesel fuel retail price fell below the average regular gasoline retail price for the first time since the week of August 10, 2009 (Figure 1). From August 2009 through June of this year, retail diesel fuel prices sold at an average premium of 34 cents per gallon (gal) over regular grade gasoline, with the premium reaching more than 90 cents/gal in January.
The August 2015 FMMO Class I base milk price is $16.28/cwt., down 25¢ from July 2015 and $7.59 less than August 2014. U.S. producers are making more milk in the Upper Midwest, and a lot of it is going into cheese vats.