MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  May 11, 2016 (REPORT 19)                           


NORTHEAST WHOLESALE CHEESE:                                      

Northeast cheese plants are maintaining full production schedules to 
manage heavy seasonal milk receipts. Producers' cheese stocks are 
building, particularly in cheddar-aging programs. Processors are 
seeing strong foodservice interest develop around provolone cheese. 
Overall, the market undertone is unsettled as prices trend lower. 
Last week, the CME Group weekly average prices for blocks and barrels 
reported declines. Likewise, this week the Northeast wholesale cheese 
prices adjusted lower. Cheddar and Muenster prices dropped $0.0525, 
while processed 5# cheese prices declined $0.550. The Grade A Swiss 
price increased $0.0100, a result of lagging adjustments based on 
Class III component prices. According to the DMN National Retail 
Report-Dairy, for May 6-12, 2016 the Northeast weighted average 
advertised price for 8 oz. cheese blocks was $2.15, 4 cents more than 
the national average, but 9 cents less than a week ago. The Southeast 
8 oz. block cheese price was $2.19, 34 cents less than the previous 
week. Tuesday's CME Group Daily cash prices saw barrels close at 
$1.2900, down $0.0800 from last week. Blocks closed at $1.2725, 
$0.0675 lower than a week ago. The Foreign Agricultural Service (FAS) 
reports that March 2016 U.S. cheese and curd exports totaled 56.2 
million pounds, a 26% drop from a year ago.
DAIRY PRODUCTS:  According to NASS, U.S. total cheese production in 
March 2016 was 1.03 billion pounds, 1.8% higher than a year ago and 
7.8% above than the previous month. In the Atlantic region, total 
cheese production was 125. million pounds, 3.5% less than a year ago, 
but 5.4% above the previous month. The total cheese production and 
percentage change from one year ago for individual Eastern states 
are, New York 69.8 million pounds, -4.2%; Pennsylvania 33.2 million 
pounds, -2.6%; and Vermont 10.3 million pounds, -2.9%.  
WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 1.7325-2.0175     
Process 5# Sliced                            : 1.5475-2.0275     
Muenster                                     : 1.7525-2.1025     
Grade A Swiss Cuts 10 - 14#                  : 2.9850-3.3075     


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


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

March Total           56.2            - 26

TOTAL, JAN - MAR     158.4            - 18
1 Mexico              54.8            + 10
2 South Korea         21.6            - 52
3 Japan               18.3            - 20
4 Australia            7.8            - 32
5 Canada               5.6            - 16


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