CME cheese markets continued to gain ground. Barrels jumped 4.5 cents to reach $2.3850 per pound, while spot blocks advanced to $2.3150, up a penny. One lot of each changed hands. The CME NDM market flirted with the $1.40-per-pound mark, settling at $1.3975 per pound, up $0.0025, with six loads trading. Spot butter and dry whey were unchanged on the day.
EU cheese prices remain the most expensive in the global market place at $2.42 per pound, compared to $2.23 in the US and $1.96 in New Zealand. Even at $3.18 per pound, the US butter price is far behind Europe at $3.98 per pound, but still ahead of $2.95 in New Zealand (international prices adjusted to 80% butterfat). But US milk powder at $1.39 per pound outpaces $1.22 in New Zealand and $1.30 across the Atlantic.
Inflation continued its cooling trend in August, with prices up 0.2% on the month and +2.5% year-over-year, the smallest yearly increase since February 2021. Overall food prices climbed 0.1% versus July and +2.1% on the year. The food-at-home index was flat on the month and up 0.9% compared to 2023, the smallest annual gain since May 2021. Restaurant prices remained ahead of the overall inflation rate, up 0.3% month-over-month and +4.0% on the year.
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