MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  October 19, 2016 (REPORT 42)                       

WEST CHEESE                                                      

Western cheese makers say milk is fairly well balanced with processing needs. Production 
is active. A few manufacturers are shifting production focus a little more toward Italian 
cheese types as opposed to American style cheeses. Domestic retail demand is starting to 
pick up a little as we get closer to the fall holidays. Demand for barrels and process 
cheese is a little lighter. Some cheese makers are getting more inquiries from export 
channels. Although sales have not developed as of yet, cheese makers are hopeful it is a 
sign that those market opportunities will be able to grow in the near future. 
Manufacturers report cheese inventories for both barrels and blocks are more comfortable. 
Lower market prices over the last few weeks spurred on an increase in buyer interest and 
allowed processors to clear stocks. The DMN National Retail Report-Dairy for the week of 
October 14-20 shows the U.S. weighted average advertised retail price for an 8 ounce pack 
of natural shredded cheese is $2.30, up $.05 from last week and from a year ago. Packs 
average $2.31 in the Southwest and $1.75 in the Northwest. For 8 ounce blocks, the U.S. 
price is $2.45, up $.19 from last week, and up $.15 from a year ago. Blocks average $1.91 
in the Southwest and $1.75 in the Northwest this week. In the West, wholesale prices are 
down $.0150 for process, and down $.0075 for cheddar block, cuts, and Monterey Jack. 
Swiss cut wholesale prices are unchanged. This week, a cooperative export assistance 
program accepted requests for 2.3 million pounds (1,047 metric tons) of cheese. So far 
this year, the program has assisted member cooperatives who have contracts to sell 42.3 
million pounds of cheese in export markets. In CME Group trading Wednesday, barrels 
closed at $1.5900, up $.1325 from a week ago and blocks closed at $1.6800, up $.1625. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5725-1.8300     
Cheddar 40# Block                            : 1.6300-2.0750     
Cheddar 10# Cuts                             : 1.8100-2.0300     
Monterey Jack 10#                            : 1.8200-1.9800     
Grade A Swiss Cuts 6 - 9#                    : 2.7200-3.1500     


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