In the European Union, cheese prices rose during the second week of August. For reference, the Mintec Benchmark Prices (MBP) for Gouda EXW Europe [Mintec Code: J114] was last assessed on 10th August at €3,405/mt, up €5/mt on the week.
Due to the mid-summer period, trade activity was quiet, with most buyers having covered themselves until the end of summer. However, some producers reportedly sold out for August, and others propped up prices without sales pressure to reduce prices. Therefore, cheese stock levels appear to be unproblematic for producers. As a result, most market participants believe the market will trade up slightly until September. The market will likely reactivate in mid-September when buyers return. Meanwhile, producers will likely hold prices as they do not face sales pressure. However, with the significantly higher valorisation of cheese versus other dairy commodities, cheese production should grow at a faster rate in the coming weeks, according to market sources, leading to higher stocks. Thus, demand after summer will be the key watchout factor in determining market direction.
Also, mozzarella prices traded up during the week across the EU, driven by stronger demand. Mozzarella prices are currently overvalued compared to yellow cheeses as it has a seasonally higher valorisation due to stronger demand during summer. The MBP for Mozzarella EXW EU [Mintec Code: ED27] was last assessed on 10th August at €3,305/mt, up 2% w-o-w.
