MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  August 17, 2016 (REPORT 33)                        

WEST CHEESE                                                      

Western cheese production remains active. Although plenty of milk is available for 
processing across much of the West, cheese makers in parts of the region are scrambling 
to get a few extra loads of milk due to seasonal declines in milk production and the 
increased draw of fluid milk for school startups. Cheese inventories are long, but 
holding relatively steady. A few industry contacts suggest manufacturers are able to 
rotate cheese stocks held in their warehouses. Supplies of young cheese, blocks and 
barrels, are still somewhat limited and continue to push cheese prices at auction 
markets. Domestic retail demand is solid and manufacturers report cheese is moving well. 
However, a few industry contacts note a slight downturn for cheese entering food service 
markets. The DMN National Retail Report-Dairy for the week of August 12-18 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded cheese 
is $2.25, down $.04 from last week, and down $.10 from a year ago. Packs average $2.18 in 
the Southwest and $1.82 in the Northwest. For 8 ounce blocks, the U.S. price is $2.17, up 
$.03 from last week, but down $.19 from a year ago. Blocks average $1.97 in the Southwest 
and $1.43 in the Northwest this week. In the West, wholesale prices are up $.0550 for 
process, and up $.0300 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale 
prices are unchanged. This week, a cooperative export assistance program accepted 13 
requests for 1.5 million pounds (683 metric tons) of cheese. So far this year, the 
program has assisted member cooperatives who have contracts to sell 32.2 million pounds 
of cheese in export markets. In CME Group trading Wednesday, barrels closed at $1.8650, 
down $.0150 from a week ago and blocks closed at $1.8200, up $.0300. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.9850-2.2425     
Cheddar 40# Block                            : 1.9000-2.3450     
Cheddar 10# Cuts                             : 2.0800-2.3000     
Monterey Jack 10#                            : 2.0900-2.2500     
Grade A Swiss Cuts 6 - 9#                    : 2.4425-2.8725     


1530CT Mike.Bandli@ams.usda.gov 605-557-7010
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