MD_DA810 DA MD DA810 Cheese - Northeast MADISON, WI. March 08, 2017 (REPORT 10) NORTHEAST WHOLESALE CHEESE: Northeast cheese makers continue to have ample milk available for moderate to heavy cheese output. Some cheddar plants are operating 7 day schedules as aging program volumes increase. Interest is still moderate for mozzarella. Food service orders are mostly steady. In general, cheese-buying activity is increasing, to refill pipeline stocks, as prices trend lower. The cheese market undertone is soft. This week, a cooperative export assistance program accepted requests for export assistance to sell 4.616 million pounds (2,094 metric tons) of cheese. At the CME Group, barrel cheese weekly averages dropped $0.0800 and block weekly averages adjusted lower $0.0375, in a weak market. As a result, East wholesale cheese prices for blocks and Muenster moved lower again. However, the Grade A Swiss price added $0.0700 following release of the Announcement of Class and Component Prices. The DMN Northeast February 2017 monthly average price for cheddar blocks is $2.2547, compared to $2.0296 one year ago. Processed 5# sliced average price is $1.9757, compared to $1.8920 one year ago. The CME Group February 2017 monthly average price for barrels was $1.6230, compared to $1.4573 a year ago; blocks' average price was $1.6199, up from $1.4744 a year ago. Tuesday's CME Group daily cash prices saw barrels close at $1.4300, down $0.0950 from a week ago; blocks closed at $1.4600, down $0.0875 from a week ago. The DMN National Retail Report-Dairy, for March 3-9, 2017, noted the Northeast weighted average advertised price for 8 oz. cheese blocks was $2.22, 7 cents above the national average, with a regional price range of $1.77-$3.50. The Southeast 8 oz. block average price was $2.15, the same price as the national average, with a regional price range of $1.79-$3.00. The Northeast average advertised price for 8 oz. cheese shreds was $2.42, 21 cents above the national average price, with a regional price range of $1.99-$3.00. In the Southeast, the average price for 8 oz. shreds was $2.12, 9 cents below the national average, with prices ranging $1.88-$2.99. DAIRY PRODUCTS: According to NASS, U.S. total cheese production in January 2017 was 1.04 billion pounds, 3.7% higher than a year ago, but 1.2% lower the previous month. In the Atlantic region, total cheese production was 136.6 million pounds, 8.8% higher than a year ago and 3.9% higher than the previous month. The total cheese production and percentage changes from one year ago for individual Eastern states are, New York 77.1 million pounds, +11.6%; Pennsylvania 35.8 million pounds, +7.0%; Vermont 12.0 million pounds, +8.9%, and New Jersey 4.2 million pounds, -17.7%. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Cheddar 40# Block : 1.9675-2.2525 Process 5# Sliced : 1.6100-2.0900 Muenster : 1.9525-2.3025 Grade A Swiss Cuts 10 - 14# : 3.3800-3.7025 The Foreign Agricultural Service (FAS) reports that January 2017 U.S. cheese and curd exports totaled 50.0 million pounds, a 3% increase over the previous year. 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago TOTAL, JANUARY 50.0 + 3 1 Mexico 12.0 - 28 2 South Korea 7.3 + 20 3 Australia 4.8 + 63 4 Japan 4.1 - 28 5 Canada 2.4 + 83 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