MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  September 27, 2017 (REPORT 39)                     

NORTHEAST WHOLESALE CHEESE:                                      
                                                                 
Cheese output rates vary amongst manufacturers. A few manufacturers 
are operating 7 day production schedules based on the level of milk 
supply intakes. However, plants in general are not prone to milk loads 
beyond contracted volumes. With the tendency in price drops that have 
occurred since mid to late August, processors would rather not make 
too much cheese. Demand appears to center on regular accounts and 
cheese orders that fill immediate needs. Otherwise, spot interest is 
somewhat light to moderate. Retail demand is rather good. Distribution 
channels are still feeling the effects of Hurricane Irma in some 
areas, which theoretically pressures expected inventory volumes of 
some suppliers. Cheese exports are steady. This week, a cooperative 
export assistance program accepted 9 requests for export assistance, 
to sell 1.296 million pounds (588 metric tons) of cheese. According to 
AMS, the Advanced Class III Skim Milk Pricing Factor is 6.67 per 
hundredweight, up .46 per hundredweight from the previous month. 
At the CME Group, weekly average cheese prices for blocks and barrels 
are mixed. Cheese blocks dropped $0.0250, but cheese barrels increased 
$0.0025. As a result, the Northeast wholesale market selling price for 
cheddar, and Munster declined, but the process cheese price increased.  
The Swiss cheese price is unchanged. The DMN National Retail Report-
Dairy, for 22-28, 2017, notes that the Northeast advertised retail 
weighted average price for 8 ounce cheese blocks was $2.24, 13 cents 
higher than the U.S. average, with prices ranging $1.50-$3.99. The 
Southeast region's 8 ounce block price averaged $1.95, 16 cents above 
the national retail average, with a price range of $1.67-$1.99. In the 
Northeast, the advertised average price for 8 ounce cheese shreds was 
$2.30, 11 cents above the national average, with a regional price 
range of $1.83-$3.99. In the Southeast, 8 ounce cheese shreds averaged 
$2.28, 9 cents higher compared to the national average, while retail 
prices ranged $1.67-$2.50. 
COLD STORAGE:  According to NASS, U.S. stocks of total natural cheese 
as of August 2017 totaled 1.3 billion pounds, 3 percent more than the 
previous year, month, but down 1 percent from last month. Swiss cheese 
totaled 26.8 million pounds, 1 percent below the last year, but higher 
by 7 percent compared to last month. In New England, Natural cheese 
stocks totaled 66.0 million pounds, 3 percent more than August 2016, 
but 1 percent below the previous month, July 2017. Meanwhile, in the 
Mid-Atlantic, Natural cheese totaled 57.7 million pounds, a 
significantly drop, 35 percent, from a year ago and down 3 percent 
from a last month, July 2017.

WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 2.0375-2.3225     
Process 5# Sliced                            : 1.6725-2.1525     
Muenster                                     : 2.0225-2.3725     
Grade A Swiss Cuts 10 - 14#                  : 3.2725-3.5950     



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