MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  July 20, 2016 (REPORT 29)                          

WEST CHEESE                                                      

Western cheese manufacturers and producers are enjoying active and strong production. 
Although there has been periods of high temperatures, it has not been an issue in milk 
production. Plenty of milk is finding its way into cheese vats, even in areas where milk 
production is seasonally down. Domestic demand is strong for process cheese and fresh 
barrels. Some industry contacts are meeting their contractual orders. Buyers are actively 
seeking out current production, especially for cheese barrels, which are becoming more 
difficult to find and are sold relatively quickly. As processors are finding fresh 
barrels a little harder to acquire, inventories are stocking more cheese with age. The 
DMN National Retail Report-Dairy for the week of July 15-21 shows the U.S. weighted 
average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.19, 
down $.11 from last week and down $.10 from a year ago. Packs average $1.93 in the 
Southwest and $1.89 in the Northwest. For 8 ounce blocks, the U.S. price is $2.19, down 
$.14 from last week, and down $.17 from a year ago. Blocks average $2.00 in the Southwest 
and $2.01 in the Northwest this week. In the West, wholesale prices are up $.0425 for 
process, and up $.0375 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale 
prices are unchanged. This week, a cooperative export assistance program accepted 
requests for 756,186 pounds (343 metric tons) of cheese. So far this year, the program 
has assisted member cooperatives who have contracts to sell 29.826 million pounds of 
cheese in export markets. In CME Group trading Wednesday, barrels closed at $1.7550, up 
$.0325 from a week ago and blocks closed at $1.6800, up $.0500. 
                                                                 
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.8375-2.0950     
Cheddar 40# Block                            : 1.7450-2.1900     
Cheddar 10# Cuts                             : 1.9250-2.1450     
Monterey Jack 10#                            : 1.9350-2.0950     
Grade A Swiss Cuts 6 - 9#                    : 2.5425-2.9725     

       2016 U.S. Cheese Imports (USDA-FAS)

                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota

May Quota              16.2          - 11.3           5.4

TOTAL, JAN - MAY
   High Tier           18.2          + 27.1           ...
   Quota               91.7          + 17.5          30.7

1530CT Mike.bandli@ams.usda.gov 608.557.7010
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