MD_DA810 DA MD DA810 Cheese - Northeast MADISON, WI. October 07, 2015 (REPORT 40) NORTHEAST WHOLESALE CHEESE: A few key cheese producers in the region report production as steady. Inventories are sufficient for near term needs. Supplies are being added to at some cheese operations. Demand is good for mozzarella, provolone and low fat cheddar. Advance cheese purchases for holiday needs are being evaluated against current price levels, as volatility grips the market. The market undertone is unsettled. According to the DMN National Retail Report-Dairy, during the week of October 2?8, the weighted average advertised price for 8 ounce cheese blocks in the Northeast was $2.54, 10 cents more than the national average, and 5 cents more than a week ago. The Southeast 8 ounce block cheese price was $2.59, 40 cents more than a week ago. Last week, the CME Group average cheese price for both blocks and barrels increased. This week cheese prices for both Northeast wholesale cheddar and Muenster rose $0.0675, and processed grew $0.0475. The Grade A Swiss price declined $0.0450, a result of lagging adjustments based on Class III component prices. The CME Group monthly average price for cheese blocks during September 2015 was $1.6605, compared to $2.3499 one year ago; barrels averaged $1.5840, compared to $2.3663 from a year ago. Tuesday?s CME Group daily cash trading saw barrels close at $1.6200, up $0.0700 from a week ago; blocks closed at $1.7400, up $0.1100 from a week ago. The Foreign Agricultural Service (FAS) reports that August 2015 U.S. cheese and curd exports totaled 50.0 million pounds, a 28% drop from a year ago. DAIRY PRODUCTS: According to NASS, U.S. cheese production in August 2015 totaled 974.4 million pounds, 3.5% more than a year ago but 1.7% less than the previous month. In the Atlantic region, total cheese production was 125.5 million pounds, 7.0% more than a year ago and 5.3% more than the previous month. The total cheese production and percentage change from one year ago for individual Eastern states are: New York 71.8 million pounds, +9.6%; Pennsylvania 35.2 million pounds, +1.0%; and Vermont 11.2 million pounds, +6.1%. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Cheddar 40# Block : 2.0650-2.3500 Process 5# Sliced : 1.7825-2.2625 Muenster : 2.0850-2.4350 Grade A Swiss Cuts 10 - 14# : 3.2675-3.5900 2015 U.S. Cheese and Curd Exports (USDA-FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago August Total 50.0 - 28 TOTAL, JAN ? AUGUST 492.1 - 15 1 Mexico 136.4 + 11 2 South Korea 98.0 - 10 3 Japan 54.6 - 39 4 Australia 28.5 - 7 5 Canada 18.3 - 8 1100CT Daniel.Johnson@ams.usda.gov 608.557.7006 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