MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  August 10, 2016 (REPORT 32)                        

WEST CHEESE
Cows were more comfortable with the good weather condition during the week. 
Plenty of milk is making its way to the cheese vats for full cheese production 
needs. With an anticipated increased demand for cheese, producers are processing 
in preparation for the upcoming football season, adding support for prices right 
now. With so much talk about and volume of cheese, some manufacturers feel there 
is no shortage of any type of cheese. Thus, inventories are a little heavy. The 
retail and food service demand remains strong. The DMN National Retail Report-Dairy 
for the week of August 5-11 shows the U.S. weighted average advertised retail price 
for an 8 ounce pack of natural shredded cheese is $2.29, up $.07 from last week, but 
down $.05 from a year ago. Packs average $2.06 in the Southwest and $1.77 in the 
Northwest. For 8 ounce blocks, the U.S. price is $2.14, up $.09 from last week, but 
down $.15 from a year ago. Blocks average $1.89 in the Southwest and $1.60 in the 
Northwest this week. In the West, wholesale prices are up $.0475 for process, and up 
$.0450 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are 
down $.1000. This week, a cooperative export assistance program accepted seven 
requests for 174,165 million pounds (79 metric tons) of cheese. So far this year, 
the program has assisted member cooperatives who have contracts to sell 30.091 
million pounds of cheese in export markets. In CME Group trading Wednesday, barrels 
closed at $1.8800, up $.0800 from a week ago and blocks closed at $1.7900, up $.0300. 
NASS Dairy Products reports total 2016 U.S. cheese production, year to date through 
June, is 5.965 billion pounds, 2.1% above 2015 during the same time span. June 2016 
U.S. total cheese production, 987.4 million pounds, is 1.5% below May 2016. In the 
West, total cheese production for June 2016 was 421.5 million pounds, 2.8% less than 
last month. For total cheese production and various types of cheese, June 2016 U.S. 
and West cheese production percent changes compared to June 2015 are as follows:

	  U.S.	 West
Total Cheese	+ 1.1%	+ 0.9%
American	- 0.2%	+ 0.4%
Cheddar	- 3.5%	- 2.1%
Total Italian	+ 2.2%	+ 1.2%
Mozzarella	+ 1.9%	+ 1.5%
Swiss	+ 6.0%	  ...
                                                                 
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.9300-2.1875     
Cheddar 40# Block                            : 1.8700-2.3150     
Cheddar 10# Cuts                             : 2.0500-2.2700     
Monterey Jack 10#                            : 2.0600-2.2200     
Grade A Swiss Cuts 6 - 9#                    : 2.4425-2.8725     

1530CT Daniel.Kim@ams.usda.gov 605-557-7009
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