MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                               

MADISON, WI.  October 12, 2016 (REPORT 41)                       


NORTHEAST WHOLESALE CHEESE:                                      
                                                                 
Cheese production remains steady. Some processing plants would 
like to produce more cheese but are not receptive to increasing 
supplies, with a premium price attached to the additional milk. 
Meanwhile, current orders are being filled as a few processors 
operate near capacity. Mozzarella orders are good, with reports 
of inventories sold out for the year. Orders for cheddar are 
slow to steady. The market undertone is mixed. Wholesale cheese 
prices in the Northeast for 40#cheddar blocks and Muenster are 
unchanged. In addition, Process 5# sliced prices are steady. The 
Grade A Swiss price rose $0.2250, following the release of the 
Announcement of Class and Component Prices. Tuesday's CME Group 
daily cash prices saw barrel cheese close at $1.4700, down 
$0.00075 from a week ago, and blocks closed at $1.5175, down 
$0.0150 from a week ago. The Foreign Agricultural Service (FAS) 
reports that August 2016 U.S. cheese and curd exports totaled 
50.1 million lbs., steady from a year ago. The DMN National 
Retail Report-Dairy, for October 7-13, 2016, noted the Northeast 
weighted average advertised price for 8 oz. cheese blocks was 
$2.26, equal to the national average, but 5 cents less than last 
week. The Southeast 8 oz. block cheese price was $2.39, down 11 
cents from last week's average. The Northeast advertised price 
for 8 oz. cheese shreds was $2.28, 3 cents above the national 
average price, and up 7 cents from the previous week. In the 
Southeast, the average price for 8 oz. shred cheese was $2.39 
down 15 cents from last week. Nationwide, cheese retail 
advertisings increased compared to a week ago. The heaviest 
advertised category is 8 oz. shreds.
DAIRY PRODUCTS: According to NASS, U.S. total cheese production 
in August 2016 was 990.0 million pounds, 1.2% higher than a year 
ago but 2.2% below the previous month. In the Atlantic region, 
total cheese production was 121.6 million pounds, 5.3% below a 
year ago, but 2.2% above the previous month. Total cheese 
production and percentage changes from one year ago for specific 
Eastern states are, New Jersey 4.9 million pounds, -0.2%; New 
York 65.1 million pounds, -8.3%; Pennsylvania 33.4, -2.2%; and  
Vermont 11.4, +1.0%.


WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                

Cheddar 40# Block                            : 1.9350-2.2200     
Process 5# Sliced                            : 1.6800-2.1600     
Muenster                                     : 1.9200-2.2700     
Grade A Swiss Cuts 10 - 14#                  : 3.1425-3.4650                                                                      



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

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

August Total         50.1             ...

TOTAL, JAN - AUG    411.4            - 17
 1 Mexico           129.8            -  5
 2 South Korea       58.7            - 40
 3 Japan             41.4            - 25
 4 Australia         22.0            - 23
 5 Canada            17.6            -  4


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