MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  July 5, 2017 (REPORT 27)                          

NORTHEAST WHOLESALE CHEESE:                                      

Milk supplies remain at levels that encourage active cheese output at some 
plants. Other cheese plants are adjusting their production schedules as 
surplus milk receipts decline and milk solids weaken around the seasonal 
factors. Inventories are sizable in some instances. A forethought of some 
market participants is the uncertainty of when prices will trend higher 
and how much coverage is in place for near term needs. Cheddar demand is 
fair with offerings available from most producers. Sales activity is 
steady for the retail sector and remains fair for food service accounts. 
The Grade A Swiss price declined $0.0675 following the release of the June 
2017 Announcement of Class and Component Prices. Additionally, the Class 
III skim milk price for June 2107 saw a 16 cents decline. The Northeast 
wholesale price for cheddar and Muenster cheeses dipped $0.0500, but the 
wholesale process 5# sliced price rose $0.0100. The DMN June 2017 
Northeast monthly average price for cheddar blocks is $2.2350, compared to 
$2.0030 one year ago. Processed 5# sliced average price is $1.8231, 
compared to $1.9266 one year ago. The CME Group June 2017 monthly barrel 
prices averaged $1.3972, compared to $1.5301 a year ago. The block prices 
averaged $1.6022, up from $1.5005 a year ago. At Monday's CME Group daily 
cash trading barrel cheese closed at $1.3525, down $0.0150 from a week 
ago, while block cheese ended the day at $1.5250, unchanged from a week 
ago. The DMN National Retail Report-Dairy, for June 30-July 6, 2017, noted 
the Northeast weighted average advertised price for 8 oz. cheese blocks 
was $2.56, 39 cents above last week's regional price, but 5 cents below 
the national average price. Northeast retail prices ranged $1.99-$4.99. 
The Southeast weighted average price for 8 oz. block was $3.12, up 30 
cents from last week and 51 cents above the national average price. 
Surveyed retail prices for the region ranged $1.60-$3.50. The Northeast 
average advertised price for 8 oz. cheese shreds was $2.45, up 16 cents 
from last week and 2 cents higher than the national average price, as 
regional prices ranged $1.99-$3.00. Southeast's average price for 
advertised 8 oz. shreds was $2.52, a 15 cents jump from the previous week, 
with prices ranging $1.60-$2.99. 

WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 1.9575-2.2425     
Process 5# Sliced                            : 1.5175-1.9975     
Muenster                                     : 1.9425-2.2925     
Grade A Swiss Cuts 10 - 14#                  : 3.1325-3.4550     

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-
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