MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  September 7, 2016 (REPORT 36)                     


NORTHEAST WHOLESALE CHEESE:                                      
                                                                 
Cheese production is steady to marginally increasing. Some areas 
are experiencing fairly tight milk supplies, due to strong Class 
I pulls. With schools and universities back in session, pizza 
consumption prompts strong mozzarella orders. Retailers are 
attempting to stay ahead of prices they expect to trend upward 
as the year progresses. For now, cheese retail advertising 
volumes show a significant increase from last week. Stocks are  
adequate. This week, Northeast wholesale cheese selling prices 
for cheddar blocks and Muenster adjusted lower $0.0975, as 
Process 5# sliced plunged $0.1550. The Grade A Swiss price added 
$0.0525 following the release of the Announcement of Class and 
Component Prices. The Northeast August 2016 monthly average 
price for cheddar blocks is $2.3220, compared to $2.2504 one 
year ago. Processed 5# sliced average price is $2.2688, compared 
to $2.1425 one year ago. According to the DMN National Retail 
Report-Dairy, for September 2-8, 2016, the Northeast weighted 
average advertised price for 8 oz. cheese blocks was $2.26, 9 
cents above the national average and 3 cents higher than the 
previous week. The Southeast 8 oz. block cheese price was $2.28, 
up 7 cents from the previous week. The Northeast advertised 
price for 8 oz. shredded cheese is $2.21, 2 cents more than the 
national average price. In the Southeast, the average price for 
8 oz. shredded cheese is $2.24, down 5 cents from last week. The 
CME Group August 2016 monthly average price for barrels was 
$1.8110, compared to $1.6689 a year ago; blocks' average price 
was $1.7826, up from $1.7111 a year ago. Tuesday's CME Group 
daily cash prices saw barrels close at $1.6525, up $0.0275 from 
a week ago; blocks closed at $1.7000, down $0.0100 from a week 
ago.  
DAIRY PRODUCTS: According to NASS, U.S. total cheese production 
in July 2016 was 1.0 billion pounds, 1.4% higher than a year ago 
and 2.6% above the previous month. In the Atlantic region, total 
cheese production was 125.2 million pounds, 0.8% higher than a 
year ago and 3.9% above the previous month. The total cheese 
production and percentage changes from one year ago for 
individual Eastern states are, New York 69.0 million pounds, 
+1.8%; Pennsylvania 33.7, -2.5%; Vermont 10.6, +0.7%, and New 
Jersey 5.0 million pounds, 11.9%. 


WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 2.0950-2.3800     
Process 5# Sliced                            : 1.8325-2.3125     
Muenster                                     : 2.0800-2.4300     
Grade A Swiss Cuts 10 - 14#                  : 2.9175-3.2400     

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