MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  November 30, 2016 (REPORT 48)                      

WEST CHEESE                                                      

Western cheese makers report solid demand for retail and food service cheese. 
Some buyers are making their final orders and restocking store shelves ahead of 
the winter holidays. Milk is readily available for processing and cheese 
production is active. In many cases, the cheese vat is the top choice for where 
to use milk not going into the bottle. Some industry contacts say branded, cut 
and wrap cheese is mostly committed through the end of the year. However, barrels 
and cheese used in processing are long. Buyers are finding cheese used for 
processing is available at discounts to current market prices. The DMN National 
Retail Report-Dairy for the week of November 25-December 1 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.17, down $.07 from last week. Packs average $2.31 in the Southwest 
and $2.13 in the Northwest. One year ago, the national price was $2.30. For 8 
ounce blocks, the U.S. price is $2.23, up $.08 from last week. Blocks average 
$2.39 in the Southwest and $2.25 in the Northwest this week. One year ago, the 
national price was $2.33. In the West, wholesale prices are up $.0150 for 
process, and up $.0025 for cheddar block, cuts, and Monterey Jack. Swiss cut 
wholesale prices are unchanged. According to the NASS Cold Storage report, U.S. 
stocks of cheese (total natural) at the end of October 2016 were 1.216 billion 
pounds, down 2% from September 2016 holdings, but up 6% from October 2015. 
American stocks were 5% more, other natural stocks were 13% more, and Swiss 
stocks were up 8% compared to last year. In the Mountain Region, American cheese 
stocks were 17% lower than one year earlier, but 1% more than one month earlier. 
Pacific Region American cheese stocks were 2% less than one year earlier, and 2% 
less than the previous month. Also in the Pacific Region, other natural cheese 
stocks were 26% above a year ago, and up 7% from a month ago. According to the 
California Department of Food and Agriculture, October 2016 cheese production was 
213.4 million pounds, up 7.6% from a year ago. California year-to-date cheese 
production through October is 2.088 billion pounds, up 3.4% from 2015 cheese 
production through October. In CME Group trading Wednesday, barrels closed at 
$1.6350, down $.0550 from last Wednesday and blocks closed at $1.7600, down 
$.1000. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.8200-2.0775     
Cheddar 40# Block                            : 1.9950-2.4400     
Cheddar 10# Cuts                             : 2.1750-2.3950     
Monterey Jack 10#                            : 2.1850-2.3450     
Grade A Swiss Cuts 6 - 9#                    : 2.9050-3.3350     


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