Cheese Prices Stabilize Blocks and barrels decline only slightly. This decline was modest compared to week-earlier declines. Cheese production remains strong due to increased milk production and better cheese yields. Butter showed some weakness this week. USDA reports that churning activity is increasing due to greater availability of cream.
Fresh butter is readily available.
So many buyers are holding off for holiday orders due to the declining prices. USDA released the Cold Storage report this week. Natural American cheese holdings were 471.4 million pounds, down 7.7 percent from August 1999 but up 12.9 percent from a year ago. USDA reported that September s privately held American cheese stocks dropped 39.3 million pounds from August s total, the largest single-month drop ever recorded. Nonfat dry milk stocks at the end of August totaled 276 million pounds, down 2.1 percent from the month before but 48.4 percent above a year ago.