MD_DA840 DA MD DA840 Cheese - West MADISON, WI. November 9, 2016 (REPORT 45) WEST CHEESE Western cheesemakers report the strong seasonal demand for branded and bulk cheese is continuing. Retail cheese consumers are pulling good volumes. Although cheese inventories are generally high, a few contacts report some varieties of fresh block cheese are harder to come by. In some cases, processors are shorting loads as a way to juggle orders with available stocks. Many manufacturers are running production schedules as hard as they can in order to stay on top of holiday shipments. Cheesemakers are mostly concentrating on current seasonal demand as opposed to looking beyond the end of the year. The hope for exports has dried up with the current gap between higher U.S. cheese prices and global cheese prices. The DMN National Retail Report-Dairy for the week of November 4-10 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.19, down $.03 from last week. Packs average $2.38 in the Southwest and $1.99 in the Northwest. One year ago, the national price was $2.40. For 8 ounce blocks, the U.S. price is $2.12, down $.13 from last week. Blocks average $2.15 in the Southwest and $1.09 in the Northwest this week. One year ago, the national price was $2.40. In the West, wholesale prices are up $.2100 for process, and up $.1675 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are up $.1850. Dairy Products (NASS) reports total 2016 U.S. cheese production, year to date through September, is 8.961 billion pounds, 1.9% above January through September 2015. September 2016 U.S. total cheese production, 981.2 million pounds, is 1.8% below August 2016. In the West, total cheese production for September 2016 was 419.6 million pounds, 0.6% less than last month. For total cheese production and various types of cheese, September 2016 U.S. and West cheese production percent changes compared to September 2015 are as follows: U.S. West Total Cheese + 1.6% + 1.9% American - 0.3% - 0.1% Cheddar - 0.5% - 1.6% Total Italian + 4.4% + 4.1% Mozzarella + 3.8% + 4.7% Swiss - 1.9% ... The CME Group October 2016 monthly average price for barrels, $1.5295, is down from the September 2016 monthly average of $1.5415, and down from the monthly average of a year ago, $1.6072. Blocks' October average price, $1.6035, is down from the $1.6224 September monthly average, and down from $1.6674 one year ago. In CME Group trading Wednesday, barrels closed at $1.8300, up $.0725 from a week ago and blocks closed at $1.9425, up $.1200. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.8825-2.1400 Cheddar 40# Block : 1.9325-2.3775 Cheddar 10# Cuts : 2.1125-2.3325 Monterey Jack 10# : 2.1225-2.2825 Grade A Swiss Cuts 6 - 9# : 2.9050-3.3350 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago September Total 48.6 - 1 TOTAL, JAN - SEP 460.0 - 15 1 Mexico 144.1 - 5 2 South Korea 66.6 - 36 3 Japan 44.7 - 26 4 Australia 24.8 - 20 5 Canada 20.6 - 1 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