MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  September 28, 2016 (REPORT 39)                     

WEST CHEESE                                                      

Western cheese makers say they are not having any problems getting enough milk for the 
vats. Cheese production is active and often running near full capacity. Retail and food 
service demand is firm. Industry contacts still report long inventories, but processors 
are turning the stocks and a good pull of bulk cheese is moving into cut and wrap 
facilities. The DMN National Retail Report-Dairy for the week of September 23-29 shows 
the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.16, down $.23 from last week, and down $.29 from a year ago. Packs average 
$2.29 in the Southwest and $1.78 in the Northwest. For 8 ounce blocks, the U.S. price is 
$2.18, down $.22 from last week, and down $.21 from a year ago. Blocks average $2.24 in 
the Southwest and $1.74 in the Northwest this week. In the West, wholesale prices are 
down $.0275 for process, and down $.0825 for cheddar block, cuts, and Monterey Jack. 
Swiss cut wholesale prices are unchanged. This week, a cooperative export assistance 
program accepted 32 requests for 5.99 million pounds (2,717 metric tons) of cheese. So 
far this year, the program has assisted member cooperatives who have contracts to sell 
38.1 million pounds of cheese in export markets. According to the NASS Cold Storage 
report, U.S. stocks of cheese (total natural) at the end of August 2016 were 1.243 
billion pounds, down 3% from July 2016 holdings, but up 6% from August 2015. American 
stocks were 5% more, other natural stocks were 8% more, and Swiss stocks were up 17% 
compared to last year. In the Mountain Region, American cheese stocks were 17% lower than 
one year earlier, and 2% less than one month earlier. Pacific Region American cheese 
stocks were 8% less than one year earlier, and 8% less than the previous month. Also in 
the Pacific Region, other natural cheese stocks were 19% above a year ago, but down 7% 
from a month ago. According to the California Department of Food and Agriculture, August 
2016 cheese production was 205.5 million pounds, up 7.6% from a year ago. California 
year-to-date cheese production through August is 1.671 billion pounds, up 2.7% from 2015 
cheese production through August. In CME Group trading Wednesday, barrels closed at 
$1.4800, down $.0300 from a week ago and blocks closed at $1.5375, down $.0475. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6100-1.8675     
Cheddar 40# Block                            : 1.6800-2.1250     
Cheddar 10# Cuts                             : 1.8600-2.0800     
Monterey Jack 10#                            : 1.8700-2.0300     
Grade A Swiss Cuts 6 - 9#                    : 2.4950-2.9250     


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