MD_DA810 DA MD DA810 Cheese - Northeast MADISON, WI. May 10, 2017 (REPORT 19) NORTHEAST WHOLESALE CHEESE: Milk supplies at most cheese locations challenge plant capacity. As cheese production nears annual peak levels, impending school closings are expected to add to the burden. Cheese stocks are fully adequate to ample and building, in some instances. Process interest is active as the grilling season begins. As well, sources feel that Swiss demand should pick up with the outdoor activity. The DMN latest survey of retail stores shows a notable hike in cheese advertisements. Orders for Memorial Day appears in some pipelines. June Dairy Month campaigns are being planned. Cheese exports to Mexico indicate a 5% dip from January -March, compared to a year ago. Active CME barrel trading continued into this week, with barrel prices trending higher. Otherwise, the East wholesale selling price for block and Muenster dipped slightly, falling $0.0250, while process 5# sliced cheese moved marginally lower $0.0025. Meanwhile, the Announcement of Class and Component Prices raised the Swiss cuts 10-14# price $0.0125. Tuesday's CME Group daily cash prices saw barrels close at $1.4600, up $0.0450 from a week ago; blocks closed at $1.5900, up $0.1100 from a week ago. The DMN National Retail Report-Dairy, for May 5-11, 2017, noted the Northeast weighted average advertised price for 8 oz. cheese blocks was $2.22, 6 cents above the national average and last week's prices. Surveyed retail prices range $1.49-$3.50. The Southeast 8 oz. block average price was $2.39, up 23 cents from the national average price and up 48 cents from the previous week, with surveyed retail prices ranging $2.00-$2.50 in the region. The Northeast average advertised price for 8 oz. cheese shreds was $2.40, 18 cents above the national average price, with prices ranging $1.67-$3.00. In the Southeast, the average price for 8 oz. shreds was $2.36, 31 cents above the previous week, with prices ranging $2.00- $2.50 in the region. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Cheddar 40# Block : 1.9650-2.2500 Process 5# Sliced : 1.5575-2.0375 Muenster : 1.9500-2.3000 Grade A Swiss Cuts 10 - 14# : 3.3225-3.6450 The Foreign Agricultural Service (FAS) reports that March 2017 U.S. cheese and curd exports totaled 68.7 million pounds, a 22% increase from a year ago. 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago March 68.7 + 22 TOTAL, JAN - MAR 176.7 + 12 1 Mexico 51.8 - 5 2 South Korea 27.9 + 29 3 Japan 15.6 - 15 4 Australia 15.2 + 95 5 Canada 7.2 + 29 The Foreign Agricultural Service (FAS) reports that Jan-March 2017 U.S. cheese and curd imports totaled 93.3 million pounds, a 22% drop from a year ago. 2017 U.S. Cheese and Curd Imports (USDA-FAS) 2017 Imports % Change From (Million Lb.) Last Month March Imports TOTAL Cheese and Curd (H.S. Code 0406) 35.2 + 32 Cheese, Except Fresh (H.S. Code 040690) 30.7 + 34 Fresh Cheese (H.S. Code 040610) 2.4 + 16 Cheese, Processed (H.S. Code 040630) 1.5 + 10 Cheese, Blue-Veined (H.S. Code 040640) 0.6 + 16 Cheese, Grated (H.S. Code 040620) 0.1 +168 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - MAR 93.3 - 22 1 Italy 15.9 - 12 2 France 10.6 - 4 3 New Zealand 10.1 - 43 4 Netherlands 6.3 + 10 5 Spain 5.8 - 2 1100CT daniel.johnson@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