MD_DA810 DA MD DA810 Cheese - Northeast MADISON, WI. February 8, 2017 (REPORT 6) NORTHEAST WHOLESALE CHEESE: Cheese production rates are moderate to seasonally heavy in the East region. Surplus milk supplies facilitate the manufacturing of cheese, although some operations' capacities for processing additional surplus milk are limited. Meanwhile, cheddar-aging programs continue to absorb good volumes. Cheese stocks are more than adequate to meet current demand. Orders dipped, in part, with the completion of Super Bowl weekend events. Retail orders are fair, while food service orders appear steady. Export trade is moderate. The market took an upturn last week as CME Group cash trading noted the weekly average price for barrels and blocks saw gains, $0.1250 and $0.0950 respectively. Prices for Grade A Swiss advanced $0.2150. Consequently, wholesale prices in the East are generally higher. However, market volatility continues, as the frontend of this week saw prices at the CME retreating once again. The CME Group January 2017 monthly average price for barrels was $1.5573, compared to $1.4842 a year ago; blocks' average price was $1.6866, up from $1.4757 a year ago. The Northeast January 2017 monthly average price for cheddar blocks is $2.2893, compared to $2.0318 one year ago. Processed 5# sliced average price is $1.9511, compared to $1.9342 one year ago. Tuesday's CME Group daily cash prices saw barrels close at $1.7000, up $0.1825 from a week ago; blocks closed at $1.6300, down $0.0775 from a week ago. The DMN National Retail Report-Dairy, for February 3-9, 2017, noted the Northeast weighted average advertised price for 8 oz. cheese blocks was $2.20, 5 cents above the national average, with a regional price range of $1.99-$3.50. The Southeast 8 oz. block average price was $2.31, 16 cents above the national average, with a regional price range of $1.88-$3.00. The Northeast average advertised price for 8 oz. cheese shreds was $2.19, 4 cents below the national average price, with a regional price range of $1.50-$2.99. In the Southeast, the average price for 8 oz. shreds was $2.37, 14 cents above the national average, with prices ranging $1.88-$2.50. The Foreign Agricultural Service (FAS) reports December 2016 U.S. cheese and curd exports totaled 63.1 million pounds, a 16% increase from a year ago. DAIRY PRODUCTS: According to NASS, U.S. total cheese production in December 2016 was 1.050 billion pounds, 1.3% higher than a year ago and 3.0% above the previous month. In the Atlantic region, total cheese production was 131.3 million pounds, 2.4% higher than a year ago, but 4.2% less than the previous month. The total cheese production and percentage changes from one year ago for individual Eastern states are, New York 72.6 million pounds, +3.3%; Pennsylvania 33.6 million pounds, -0.5%; Vermont 12.2 million pounds, +5.1%, and New Jersey 5.5 million pounds, 2.2%. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Cheddar 40# Block : 2.2100-2.4950 Process 5# Sliced : 1.7250-2.2050 Muenster : 2.1950-2.5450 Grade A Swiss Cuts 10 - 14# : 3.3100-3.6325 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago December Total 63.1 + 16 TOTAL, JAN - DEC 632.8 - 9 1 Mexico 198.4 - 1 2 South Korea 93.6 - 25 3 Japan 61.3 - 20 4 Australia 34.3 - 10 5 Canada 29.3 + 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