MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  August 31, 2016 (REPORT 35)                        

WEST CHEESE                                                      

Western cheese production remains active as there are very few obstacles in 
getting enough milk for most processing needs. Some cheese makers are running 
full production schedules. Although exports have been sluggish, domestic demand 
for natural cheese has been good. Retail accounts are pulling good volumes and 
cheese is moving well through existing contracts. A few manufacturers report that 
although cheese supplies are long across the industry, they have been able to 
draw down their cheese stocks and are regularly turning over their inventories. 
The DMN National Retail Report-Dairy for the week of August 26-September 1 shows 
the U.S. weighted average advertised retail price for an 8 ounce pack of natural 
shredded cheese is $2.30, up $.01 from last week, but down $.16 from a year ago. 
Packs average $2.32 in the Southwest and 2.11 in the Northwest. For 8 ounce 
blocks, the U.S. price is $2.17, up $.05 from last week, but down $.17 from a 
year ago. Blocks average $1.88 in the Southwest.  There were no reported 8 ounce 
block prices in the Northwest this week. In the West, wholesale prices are down 
$.0775 for process, and down $.0300 for cheddar block, cuts, and Monterey Jack. 
Swiss cut wholesale prices are unchanged. This week, a cooperative export 
assistance program accepted 10 requests for 1.98 million pounds (899 metric tons) 
of cheese. So far this year, the program has assisted member cooperatives who 
have contracts to sell 33.5 million pounds of cheese in export markets. According 
to the California Department of Food and Agriculture, July 2016 cheese production 
was 213.6 million pounds, up 4.2% from a year ago. California year-to-date cheese 
production through July is 1.466 billion pounds, up 2.0% from 2015 cheese 
production through July. In CME Group trading Wednesday, barrels closed at 
$1.6250, down $.1550 from a week ago and blocks closed at $1.6800, down $.1000. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.8950-2.1525     
Cheddar 40# Block                            : 1.8950-2.3400     
Cheddar 10# Cuts                             : 2.0750-2.2950     
Monterey Jack 10#                            : 2.0850-2.2450     
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