MD_DA840 DA MD DA840 Cheese - West MADISON, WI. October 05, 2016 (REPORT 40) WEST CHEESE Western cheese production remains strong. Cheese makers say they are not having much trouble getting milk for their cheese facilities. In some cases, western milk is flowing toward the cheese vats rather than other dairy manufacturing lines. Cheese inventories are long, but many industry contacts feel the stocks are manageable. Some manufacturers are shifting production from mozzarella to cheddars to add to aging programs. Domestic cheese demand is solid, especially for retail and food service business. Export markets, however, have not yet improved. The DMN National Retail Report-Dairy for the week of September 30-October 6 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.31, up $.15 from last week, but down $.09 from a year ago. Packs average $2.47 in the Southwest and $2.24 in the Northwest. For 8 ounce blocks, the U.S. price is $2.27, up $.09 from last week, but down $.17 from a year ago. Blocks average $2.12 in the Southwest and $2.24 in the Northwest this week. In the West, wholesale prices are down $.0225 for process, and down $.0425 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are unchanged. This week, a cooperative export assistance program accepted 10 requests for 1.6 million pounds (726 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 39.7 million pounds of cheese in export markets. Dairy Products (NASS) reports total 2016 U.S. cheese production, year to date through August, is 7.970 billion pounds, 1.9% above January through August 2015. August 2016 U.S. total cheese production, 990.0 million pounds, is 2.2% below July 2016. In the West, total cheese production for August 2016 was 422.0 million pounds, 4.0% less than last month. For total cheese production and various types of cheese, August 2016 U.S. and West cheese production percent changes compared to August 2015 are as follows: U.S. West Total Cheese + 1.2% + 3.1% American - 1.4% ... Cheddar ... + 5.4% Total Italian + 5.0% + 6.9% Mozzarella + 4.4% + 7.1% Swiss - 3.2% ... The CME Group September 2016 monthly average price for barrels, $1.5415, is down from the August 2016 monthly average of $1.8110, and down from the monthly average of a year ago, $1.5840. Blocks' September average price, $1.6224, is down from the $1.7826 August monthly average, and down from $1.6605 one year ago. In CME Group trading Wednesday, barrels closed at $1.4500, down $.0300 from a week ago and blocks closed at $1.5325, down $.0050. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.5875-1.8450 Cheddar 40# Block : 1.6375-2.0825 Cheddar 10# Cuts : 1.8175-2.0375 Monterey Jack 10# : 1.8275-1.9875 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 August Total 50.1 ... TOTAL, JAN - AUG 411.4 - 17 1 Mexico 129.8 - 5 2 South Korea 58.7 - 40 3 Japan 41.4 - 25 4 Australia 22.0 - 23 5 Canada 17.6 - 4 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