MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  July 20, 2016 (REPORT 29)                          


NORTHEAST WHOLESALE CHEESE:                                      
                                                               
Although several plant maintenance projects occurred this week at area 
cheese operations, cheese production is mostly steady as seasonal milk 
supplies continue to push active processing. Cheese makers are adding 
to growing inventories. Domestic demand generally varies, as some 
manufacturers report a slowdown in sales. Global interest remains 
sluggish. Those Class III cheese operations with the capacity to 
manufacture other dairy products are better able to manage their milk 
intakes. Last week, the CME Group weekly average prices for both the 
block and barrel markets moved higher. Hence, this week the Northeast 
wholesale cheese price for 40# block and muenster rose $0.0375, while 
Process 5# sliced increased $0.0425. The Grade A Swiss cheese price is 
steady. According to the DMN National Retail Report-Dairy, for July 
15-21, the Northeast weighted average advertised price for 8 oz. 
cheese blocks was $2.22, 3 cents higher than the national average, but 
14 cents below the previous week's Northeast price. The Southeast 8 
oz. block cheese price was $2.31, down 2 cents from last week's 
Southeast price. Tuesday's CME Group daily cash prices saw both block 
and barrel prices continue to trend higher. Barrels closed at $1.7550, 
up $0.0325 from last week. Blocks closed at $1.6800, up $0.0500 from 
week ago prices. The Foreign Agricultural Service (FAS) reports June 
2016 U.S. imports of cheese totaled 18.6 million pounds, an increase 
of 3.5% from a year ago, while 6.2% of the yearly quota.

WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 2.0425-2.3275     
Process 5# Sliced                            : 1.9300-2.4100     
Muenster                                     : 2.0625-2.4125     
Grade A Swiss Cuts 10 - 14#                  : 2.9650-3.2875     



2016 U.S. Cheese Imports (USDA-FAS)
                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota

June Quota           18.6           +  3.5             6.2

TOTAL, JAN - JUNE
High Tier            21.9           + 29.6             ...
Quota               110.3           + 14.9            36.9

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