MD_DA128                                                         
DA                                                               
MD DA128 Cheddar Cheese - Oceania                                

MADISON, WI.  July 20, 2017 (REPORT 29)                          

OCEANIA                                                          
INFORMATION GATHERED  07/10/2017 - 07/21/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

CHEDDAR CHEESE:    

       Oceania cheddar cheese prices slightly firmed. Cheese pricing is 
expected to remain near current levels, moving in a trading range in 
the immediate future. Demand is strong, but prices are now the 
highest of 2016 and 2017. This leads some observers to question how 
much additional price strength to expect. The increasing milk supply 
moving forward should help maintain demanded volumes.                                              
       This year, January-May, Australia cheese exports, 76,868 MT, 
increased 8.2 percent from the same period one year earlier, 
according to Eucolait. January-May, the range of percentage changes 
year to date in cumulative export volumes is from +4.1 percent in 
February, to +13.0 percent in January.
       Export volumes and primary destinations are shown in the 
following table:

  		 Australia Cheese Exports
		 Main Three Destinations 
		 January-May 2017 
 
Destination     Quantity(MT)   Percent of Total  
Japan           35,180         48.0 
China           10,600         14.5 
South Korea      4,832          6.6

       China, historically a significant cheese importer from Oceania 
(the top two origin countries), has increased cheese imports this 
year. January-May China cheese imports, 46,383 MT, increased 23.8 
percent from the same period one year earlier, according to Eucolait. 
January-May, the range of percentage changes year to date in 
cumulative export volumes is from -1.2 percent in January, to +23.8 
percent in May. 
       Import volumes and primary origins are shown in the following 
table:

  		 China Cheese Imports
		 Main Three Origins 
		 January-May 2017 
 
Origin         Quantity(MT)   Percent of Total  
New Zealand     25,197        54.3 
Australia       9,537         20.6 
U.S.A.          4,509          9.7

       At GDT Event 192 on July 18, the cheddar all contracts price 
increased 1.6 percent.

39% MAXIMUM MOISTURE:                    4,025 - 4,075           

0930c eric.graf@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home