Both cheddar blocks and barrels increased another 5 cents per pound on June 11. But the BFP is adjusted by changes in the NASS survey 40 pound cheddar block price and not the CME price. The NASS survey price lags behind the CME prices. While the CME block price increased 28.25 cents per pound from May 7 to June 5, the weekly average NASS block prices increased just 11.17 cent per pound from the week ending May 8 through the week ending June 5. Therefore the expected increase in the June BFP is less with NASS prices than what one would anticipate from CME prices.
T hese relatively strong cheese prices exist despite cheese production above a year ago.
Wholesale buyers are not available to purchase additional cheese and are bidding cheese prices higher. Cream supplies are tight as ice cream manufacturers compete with butter makers. Butter stocks are about 68 million pounds. But as recent as 1992 when the CCC was purchasing lots of surplus butter stocks stood at 781 million pounds. Butter supplies and prices should stay strong until at least late fall.