MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  July 6, 2016 (REPORT 27)                          

NORTHEAST WHOLESALE CHEESE: 
                                     
The CME Group weekly average prices for cheese barrels and blocks 
strengthened through last week. As a result, this week the Northeast 
wholesale prices for 40# cheddar and Muenster increased $0.0700 and 
prices for process 5# sliced increased $0.0875. Grade A Swiss prices 
declined $0.0125, subsequent to lagging adjustments based on Class III 
component prices. Tuesday's CME Group daily cash prices saw barrels 
close at $1.6700, up $0.1100 from last week. Blocks closed at $1.5950, 
up $0.0650 from week ago prices. The June 2016 monthly average price 
for Northeast cheddar blocks is $2.0030, compared to $2.2480 one year 
ago. Processed 5# sliced average price is $1.9266, compared to $2.1339 
one year ago. The CME Group June 2016 monthly average price for 
barrels was, $1.5301, compared to $1.6690 a year ago; blocks' average 
price was $1.5005, down from $1.7052 a year ago. Northeast cheese vats 
are full this week. Cheese manufacturers report running full 
schedules, bringing in additional loads as plant capacity allows. Some 
manufacturers purchased additional loads of condensed skim over the 
holiday weekend to fill any gaps in production schedules. Inventories 
are mixed. A few manufacturers report strong demand, preventing them 
from building inventories. Industry contacts feel cheddar-type cheeses 
are seeing a slow climb in sales. The market undertone is mixed.
According to the DMN National Retail Report-Dairy, for July 1-7, the 
Northeast weighted average advertised price for 8 oz. cheese blocks 
was $2.46, 23 cents more than the national average and 26 cents higher 
than a week ago. The Southeast 8 oz. block cheese price was $2.16, 34 
cents less than the previous week.  

WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 1.9875-2.2725     
Process 5# Sliced                            : 1.8275-2.3075     
Muenster                                     : 2.0075-2.3575     
Grade A Swiss Cuts 10 - 14#                  : 2.9650-3.2875     

1100CT Amy.L.Schmitz@ams.usda.gov 608.557.7004
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