MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  October 11, 2017 (REPORT 41)                       

NORTHEAST WHOLESALE CHEESE:                                      
                                                                 
With milk supplies little changed, cheese production is about steady, 
though cheese yields are improving seasonally. Branded promotions are 
underway, but for the moment, private label is clearing best for some 
retail customers. Cream cheese production is balanced and processors' 
contracted cream volumes are adequate for processing needs. With 
prices trending higher at the CME over the past few weeks, the cheese 
market offers a bullish undertone. Tuesday's CME Group daily cash 
prices saw barrels close at $1.7050, up $0.0150 from a week ago; 
blocks closed at $1.7575, up $0.0325 from a week ago. According to 
NASS, U.S. total cheese production in April 2017 was 1.03 billion 
pounds, 2.3 percent higher than a year ago, but 0.7 percent lower than 
last month. In the Atlantic region, total cheese production was 136.5 
million pounds, 4.4 percent higher than a year ago and 8.2 percent 
higher than the previous month. Total cheese production and percentage 
change, from last year for selected Eastern states are, New York 77.8 
million pounds, +6.3 percent; Pennsylvania 33.9 million pounds, -2.8 
percent; Vermont 12.0 million pounds, +10.3 percent, and New Jersey 
4.9 million pounds, -3.6 percent. The DMN National Retail Report-
Dairy, for October 6-12, 2017, noted the Northeast weighted average 
advertised price for 8 oz. cheese blocks was $2.33, 19 cents below the 
national average, with a regional price range of $1.79-$3.59. The 
Southeast 8 oz. block average price was $2.65, 13 cents above the 
national average, with a regional price range of $1.98-$3.00. The 
Northeast average advertised price for 8 oz. cheese shreds was $2.48, 
1 cent above the national average price, with a regional price range 
of $1.88-$3.49. In the Southeast, the average price for 8 oz. shreds 
was $2.56, 9 cents above the national average, with prices ranging 
$1.98-$3.00.

WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 2.1825-2.4675     
Process 5# Sliced                            : 1.8775-2.3575     
Muenster                                     : 2.1675-2.5175     
Grade A Swiss Cuts 10 - 14#                  : 3.1625-3.4850     


The Foreign Agricultural Service (FAS) reports that August 2017 U.S. 
cheese and curd exports totaled 67.0 million pounds, a 34% increase 
from a year ago.

2017 U.S. Cheese and Curd Exports (USDA-FAS)

                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

August               67.0            + 34

TOTAL, JAN - AUG    508.4            + 24
 1 Mexico           150.9            + 16
 2 South Korea       82.2            + 40
 3 Japan             50.6            + 22
 4 Australia         40.7            + 85
 5 China             18.6            + 31



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