MD_DA810 DA MD DA810 Cheese - Northeast MADISON, WI. January 11, 2017 (REPORT 2) NORTHEAST WHOLESALE CHEESE: Current cheese production is active, although generally lighter than yearend holiday levels. Recent winter storms have caused interruptions in production and delivery schedules. Demand for cheese is rebounding as retailers get back into the market after assessing their post- holiday inventories. Sales are fair to good, as orders for party trays improve. Food service orders are steady. Cheddar aging programs are rebuilding supplies. Cheese yields are good, but off from peak levels. Northeast wholesale cheese prices for cheddar and Muenster increased $0.0025, while 5# sliced process cheese prices increased $0.0275. The Grade A Swiss price declined $0.1750 from last month, a result of adjustments to Class III component prices. Tuesday's CME Group daily cash prices saw barrels close at $1.6300, up $0.0350 from a week ago. Blocks closed at $1.7200, up $0.0500 from a week ago. The DMN National Retail Report-Dairy, for January 6-12, 2017, noted the Northeast weighted average advertised price for 8 oz. cheese blocks was $2.31, 18 cents above the national average, with a regional price range of $1.66-$3.00. The Southeast 8 oz. block average price was $2.11, 2 cents below the national average, with a regional price range of $1.77-$2.50. The Northeast average advertised price for 8 oz. cheese shreds was $2.22, 7 cents above the national average price, with a regional price range of $1.66-$2.99. In the Southeast, the average price for 8 oz. shreds was $2.06, with prices ranging $1.77-$2.50. The Foreign Agricultural Service (FAS) reports that November 2016 U.S. cheese and curd exports totaled 55.0 million pounds, a 9% upturn from a year ago. DAIRY PRODUCTS: According to NASS, U.S. total cheese production in November 2016 was 1.0 billion pounds, 2.7% higher than a year ago, but 2.6% below the previous month. In the Atlantic region, total cheese production was 129.1 million pounds, 3.4% higher than a year ago, but 3.8% below the previous month. Total cheese production and percentage changes from one year ago for individual Eastern states are, New Jersey 4.9 million pounds, -3.4%; New York 69.8, +0.1%; Pennsylvania 35.1, +10.7%; and Vermont 12.2 million pounds, +4.5%. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Cheddar 40# Block : 2.1275-2.4125 Process 5# Sliced : 1.7225-2.2025 Muenster : 2.1125-2.4625 Grade A Swiss Cuts 10 - 14# : 3.0950-3.4175 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago November Total 55.0 + 9 TOTAL, JAN - NOV 569.7 - 12 1 Mexico 179.8 - 1 2 South Korea 82.9 - 29 3 Japan 54.5 - 23 4 Australia 29.9 - 16 5 Canada 26.5 + 1 1100CT daniel@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