MD_DA810 DA MD DA810 Cheese - Northeast MADISON, WI. August 09, 2017 (REPORT 32) NORTHEAST WHOLESALE CHEESE: Cheese manufacturers, in general, appear to be comfortable with the production situation. Lower milk volumes and components in available milk lead to less than momentous production drops. Undoubtedly, there are noted cheese manufacturers who continue to run at/near capacity, with a willingness to expand supplies into aging programs. Food service demand is steady, as some schools restart classes. Export cheese interest is active, with the most significant change, from a year ago, observed as cheese moved into Australia, up 68 percent, ahead the milk production season. In addition, export assistance programs continue to provide active support. Some suppliers point out that in lieu of good export interest, attention is focused on having sufficient domestic stocks that will meet the spurt in demand expected over the last quarter of 2017. This week, Northeast wholesale prices for 40# block and muenster increased $0.0225 and process 5# sliced increased $0.1050. In addition, the Grade A Swiss price added $0.04, following the release of the July 2017 Announcement of Class and Component Prices. Meanwhile, the Class III milk price decreased 99 cents per hundredweight from the previous month. CME Group daily cash trading on Tuesday saw barrel cheese close at $1.5100, down $0.1500 from a week ago, while the block cheese price ended the day at $1.6600, down $0.1275. The DMN National Retail Report- Dairy, for August 4-10, 2017, observed that the Northeast advertised weighted average price for 8 oz. cheese blocks was $2.18, 9 cents below the national average, with a regional price range of $1.49-$3.49. In the Southeast, 8 oz. blocks averaged $2.34, 7 cents higher than the national average, with a regional price range of $1.49-$3.50. The Northeast advertised average price for 8 oz. cheese shreds was $2.29, 10 cents above the national average, with a regional price range of $1.50-$2.99. In the Southeast, 8 oz. cheese shreds averaged $2.19, identical to the national average price, ranging $1.49-$3.00 regionally. The Foreign Agricultural Service (FAS) reports that June 2017 U.S. cheese and curd exports totaled 67.3 million pounds, a 32 percent increase from a year ago. DAIRY PRODUCTS: According to NASS, U.S. total cheese production in June 2017 was 1.03 billion pounds, 3.2 percent higher than a year ago, but 2.5 percent lower than May 2017. In the Atlantic region, total cheese production for June was 127.6 million pounds, 4.4 percent higher than a year ago, but a 1.3 percent decline compared to May 2017. Total cheese production and the percentage change from last year for selected eastern U.S. states are, New Jersey 5.0 million pounds, +3.0 percent; New York 69.0 million pounds, +3.3 percent; Pennsylvania 34.1 million pounds,+2.6 percent; and Vermont 11.7 million pounds, +12.1 percent. Meanwhile, cheddar cheese production in the Atlantic region was 25.1 million pounds, up 8.5 percent, compared to June last year. Output for mozzarella totaled 36.9 million pounds, increasing 0.9 percent from June 2016. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Cheddar 40# Block : 2.1800-2.4650 Process 5# Sliced : 1.7300-2.2100 Muenster : 2.1650-2.5150 Grade A Swiss Cuts 10 - 14# : 3.1725-3.4950 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago June 67.3 + 32 TOTAL, JAN - JUN 381.4 + 24 1 Mexico 117.1 + 16 2 South Korea 63.5 + 48 3 Japan 36.5 + 10 4 Australia 27.3 + 68 5 China 13.6 + 39 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