MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  March 09, 2016 (REPORT 10)                         


NORTHEAST WHOLESALE CHEESE:                                      
                                                                 
This week, milk intakes continue to prompt production output that is 
beyond normal interest and holiday demand. Cheese procurements from 
contracted customers remain good, while spot exchanges are sluggish. 
Non-competitive prices discourage global sales. The influence of 
cheese imports on domestic market transactions increase sale 
challenges for some cheese types. The market has a mixed undertone. 
Wholesale cheddar and Muenster saw an upturn this week, moving prices 
$0.0150 higher. In addition, process 5# cheese increased $0.0075. The 
Grade A Swiss price declined $0.0975, subsequent to adjustment delays 
centered on Class III component prices. According to the DMN National 
Retail Report-Dairy, for, March 4-10, 2016, the Northeast weighted 
average advertised price for 8 oz. cheese blocks was $2.18, 11 cents 
below the national average and 12 cents less than the previous week. 
The Southeast 8 oz. block cheese price was $2.54, up 6 cents from the 
previous week. The DMN February 2016 monthly average price for 
Northeast cheddar blocks is $2.0296, compared to $2.0672 the previous 
year. Processed 5# sliced average price is $1.8920, compared to 
$1.9488 one year ago. The CME Group February 2016 monthly average 
price for barrels was, $1.4573, compared to $1.4849 a year ago; 
blocks' average price was $1.4744, compared to 1.5382 a year ago.  
Tuesday's CME Group daily cash prices saw barrels close at $1.4650, 
up $0.0325 from a week ago; blocks closed at $1.5200, up $0.0600 from 
a week ago.
DAIRY PRODUCTS:  According to NASS, U.S. total cheese production in 
January 2016 was 1.003 billion pounds, 2.6% higher than a year ago, 
but 2.6% below the previous month. In the Atlantic region, total 
cheese production was 125.6 million pounds, 6.9% higher than a year 
ago, but 2.2% below the previous month. The total cheese production 
and percent changes from one year ago for individual Eastern states 
are, New York 69.1 million pounds, +3.7%; Pennsylvania 33.5 million 
pounds, +0.1%; and Vermont 11.0 million pounds, +2.8%.  


2016 U.S. Cheese and Curd Exports (USDA-FAS)

                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

January Total        48.4            -  8

TOTAL, JAN           48.4            -  8
 1 Mexico            16.6            + 30
 2 South Korea        6.1            - 57
 3 Japan              5.8            - 16
 4 Australia          3.0            + 47
 5 Chile              1.7            + 48 

WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 1.8825-2.1675     
Process 5# Sliced                            : 1.6475-2.1275     
Muenster                                     : 1.9025-2.2525     
Grade A Swiss Cuts 10 - 14#                  : 3.0550-3.3775                                                                     


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