DCA Benchmarks: Cheese market commentary week 38

The cheese market experienced mixed results in week 28 (September 17). Most benchmarks remained flat or declined, save for a few exceptions. A weaker demand weighed particularly on foiled cheeses and Mozzarella. Cheddar and other specialty cheeses proved more resilient, while low stocks may offer some support despite generally subdued market sentiment.All foiled cheese benchmarks declined over the previous week, closing at €3,535 for Edam (-1%), at €3,555 for Gouda (-0.4%), and €3,640 for Frau Antje (-0.4%). Demand is reportedly lower, with an important number of buyers already covered in the short term. Despite the weekly drop, foiled cheese benchmarks have observed an increase between 4.6% and 5% over the previous month and between 5.5% and 6.1% over the previous year. The main reason behind the annual increase responds to the accelerated decline in pricing observed a year ago, rather than a positive sentiment in the current market.At the same time, Mozzarella observed the strongest drop within the cheese segment, falling by 2.1% week-over-week to €3,505. The negative trend observed the previous week extended into a 4.5% decline over the previous month, although prices remained strong over the previous year and the relative strength of Mozzarella in terms of dry matter. As such, it appears as if Mozzarella prices reached their ceiling in week 35.The Cheddar complex remained more stable, observing a weekly decline between 0.5% and 0.9% to €3,655 and €3,700 for Curd and Mild, respectively. Maasdam also remained stable at €3,965, while Emmentaler even increased by 0.4% to €4,060. Developments in these commodities contrast notably with foiled cheeses and Mozzarella, observing gains in the few weeks but remaining between 6.6% and 9.1% below the previous year’s levels. Contributors reported quiet market and a weaker demand in several commodities, especially Mozzarella. Although producers were reluctant to lower their offers, most observations ranged from stable to lower. Cheddar was an exception, underlining the notable strength observed at the GDT, while low cheese stocks could also provide some support to the general cheese pricing.