MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  September 07, 2016 (REPORT 36)                     

WEST CHEESE                                                      

Western cheese production is relatively steady and consistent with available milk supply. Although 
milk production is waning a little in the northern states of the region, processors report there 
are not any major problems getting enough milk for the cheese vats. Domestic retail and food 
service demand has been good. Customers are taking regular shipments and helping keep cheese stocks 
under control. Industry contacts say commodity cheese inventories are long, but sellers are not in 
a rush to clear stocks. A few cheese makers indicate their inventories of 40 pound block cheese has 
been drawn down to more comfortable levels leading into the fall holidays. The DMN National Retail 
Report-Dairy for the week of September 2-8 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 $.07 
from a year ago. Packs average $2.18 in the Southwest and $1.72 in the Northwest. For 8 ounce 
blocks, the U.S. price is $2.17, the same as last week, and up $.03 from a year ago. Blocks average 
$2.24 in the Southwest and $1.35 in the Northwest this week. In the West, wholesale prices are down 
$.1550 for process, and down $.0975 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale 
prices are up $.0525. Dairy Products (NASS) reports total 2016 U.S. cheese production, year to date 
through July, is 6.984 billion pounds, 2.0% above January through July 2015. July 2016 U.S. total 
cheese production, 1.017 billion pounds, is 2.6% above June 2016. In the West, total cheese 
production for July 2016 was 438.5 million pounds, 3.7% more than last month. For total cheese 
production and various types of cheese, July 2016 U.S. and West cheese production percent changes 
compared to July 2015 are as follows:

	  U.S.	 West
Total Cheese	+ 1.4%	+ 3.8%
American	+ 0.2%	+ 2.3%
Cheddar	- 1.7%	+ 0.1%
Total Italian	+ 3.2%	+ 3.9%
Mozzarella	+ 2.5%	+ 2.9%
Swiss	+ 0.3%	  ...

The CME Group August 2016 monthly average price for barrels, $1.8110, is up from the July 2016 
monthly average of $1.7363, and up from the monthly average of a year ago, $1.6689. Blocks' August 
average price, $1.7826, is up from the $1.6613 July monthly average, and up from $1.7111 one year 
ago. In CME Group trading Wednesday, barrels closed at $1.6600, up $.0350 from a week ago and 
blocks closed at $1.7200, up $.0400. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7400-1.9975     
Cheddar 40# Block                            : 1.7975-2.2425     
Cheddar 10# Cuts                             : 1.9775-2.1975     
Monterey Jack 10#                            : 1.9875-2.1475     
Grade A Swiss Cuts 6 - 9#                    : 2.4950-2.9250     

2016 U.S. Cheese and Curd Exports (USDA-FAS)

                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

July Total           52.8            -  6

TOTAL, JAN - JUL    361.4            - 18
 1 Mexico           115.9            -  5
 2 South Korea       51.4            - 42
 3 Japan             38.4            - 26
 4 Australia         18.9            - 29
 5 Canada            14.8            -  5

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