MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  October 26, 2016 (REPORT 43)                       

WEST CHEESE                                                      

Western dairy contacts say cheese production is strong and active. Manufacturers seem 
willing to take extra loads of milk when available. Overall, milk is in pretty good 
balance with processing needs and gets quickly gobbled up by nearby processors. Cheese 
makers report good domestic retail demand and a solid pull from food service accounts. 
Some industry contacts suggest there is still plenty of cheese available, however others 
report that Western block supplies are much lighter than they were earlier in the season. 
The DMN National Retail Report-Dairy for the week of October 21-27 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded cheese 
is $2.26, down $.04 from last week and down $.03 from a year ago. Packs average $2.26 in 
the Southwest and $1.64 in the Northwest. For 8 ounce blocks, the U.S. price is $2.32, 
down $.13 from last week, but up $.16 from a year ago. Blocks average $2.99 in the 
Southwest and $1.53 in the Northwest this week. In the West, wholesale prices are up 
$.1025 for process, and up $.1250 for cheddar block, cuts, and Monterey Jack. Swiss cut 
wholesale prices are unchanged. This week, a cooperative export assistance program 
accepted requests for 136,687 pounds (62 metric tons) of cheese. So far this year, the 
program has assisted member cooperatives who have contracts to sell 42.4 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 September 2016 were 1.238 billion pounds, unchanged 
from August 2016 holdings, but up 7% from September 2015. American stocks were 6% more, 
other natural stocks were 9% more, and Swiss stocks were up 14% compared to last year. In 
the Mountain Region, American cheese stocks were 21% lower than one year earlier, and 3% 
less than one month earlier. Pacific Region American cheese stocks were 1% more than one 
year earlier, and 4% more than the previous month. Also in the Pacific Region, other 
natural cheese stocks were 15% above a year ago, and up 3% from a month ago. According to 
the California Department of Food and Agriculture, September 2016 cheese production was 
202.5 million pounds, up 4.9% from a year ago. California year-to-date cheese production 
through September is 1.874 billion pounds, up 2.9% from 2015 cheese production through 
September. In CME Group trading Wednesday, barrels closed at $1.5575, down $.0325 from a 
week ago and blocks closed at $1.6550, down $.0250. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6750-1.9325     
Cheddar 40# Block                            : 1.7550-2.2000     
Cheddar 10# Cuts                             : 1.9350-2.1550     
Monterey Jack 10#                            : 1.9450-2.1050     
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