MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  March 1, 2017 (REPORT 9)                       

NORTHEAST WHOLESALE CHEESE:                                      
                                                                 
In the Northeast, cheese production is generally heavy. Output exceeds 
year ago volumes due to milk receipts and the decline of interest from 
Class I usage. With the recent notification of a possible closing of 
one regional cheese plant, balancing operations are concerned about 
the economic impact, as milk supplies could further extend beyond area 
demand. In light of the current milk supplies, cheese operations are 
adding to their inventory volumes. Meanwhile demand varies and is 
typically contingent upon market channels. Food service transactions 
are moderate to light, as interest develops around various fast food 
pipelines with promotional activity. This week, a cooperative export 
assistance program accepted requests for export assistance to sell 
2.588 million pounds (1,174 metric tons) of cheese. Wholesale cheese 
markets continue to see prices trend lower, corresponding to drops in 
the weekly average price at the CME Group. The barrel price dipped 
$0.0875, while blocks slipped $0.0550. Prices for Grade A Swiss are 
stable. Tuesday's CME Group daily cash prices saw barrels close at 
$1.5250, down $0.0750 from a week ago; blocks closed at $1.5475, up 
$0.0175 from a week ago. Improved trading occurred as 14 carloads of 
cheese barrels exchanged hands, mostly on bids. The DMN National 
Retail Report-Dairy, for February 24 to March 02, 2017, noted the 
Northeast weighted average advertised price for 8 oz. cheese blocks 
was $2.35, 29 cents above the national average, with a regional price 
range of $1.99-$3.29. The Southeast's 8 oz. block price was $2.03, 3 
cents below the national average, with a regional price range of 
$1.66-$2.50. In the Northeast, average advertised prices for 8 oz. 
cheese shreds was $2.20, 8 cents above the national average price, 
with a regional price range of $1.50-$2.99. While in the Southeast, 
the average price for 8 oz. shreds was $2.23, 11 cents above the 
national average, with prices ranging $1.66-$2.50.
COLD STORAGE:  According to NASS, U.S. stocks of total natural cheese, 
as of January 2017, totaled 1.2 billion pounds, 3 percent more than 
the previous month and up 5 percent from a year ago. Swiss cheese 
totaled 23.9 million pounds, 1 percent less than a year ago, and down 
1 percent from last month. In New England, stocks of American cheese 
totaled 71.0 million pounds, 14% more than January 2016 and 11% more 
than the previous month.

WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 2.0050-2.2900     
Process 5# Sliced                            : 1.6900-2.1700     
Muenster                                     : 1.9900-2.3400     
Grade A Swiss Cuts 10 - 14#                  : 3.3100-3.6325     

1100CT daniel@ams.usda.gov 608.422.8605
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