MD_DA840 DA MD DA840 Cheese - West MADISON, WI. December 07, 2016 (REPORT 49) WEST CHEESE With milk in good balance with processing needs, western cheese makers are actively producing and filling remaining cheese orders for the winter holiday season. Retail demand has been strong, but industry contacts expect some of this demand to wane as the window for shipping holiday orders pass. Cheese demand from food service accounts are also seeing good strength, especially for mozzarella and other cheese for pizzas. Cheese stocks are comfortable to tight for fresh blocks, but remain longer for older cheese and cheese used for processing. The DMN National Retail Report-Dairy for the week of December 2-8 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.32, up $.14 from last week. Packs average $2.81 in the Southwest and $2.11 in the Northwest. One year ago, the national price was $2.32. For 8 ounce blocks, the U.S. price is $2.25, up $.02 from last week. Blocks average $2.71 in the Southwest and $1.99 in the Northwest this week. One year ago, the national price was $2.24. In the West, wholesale prices are down $.0750 for process, and down $.1000 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are down $.0575. This week, a cooperative export assistance program accepted requests for 1.785 million pounds (710 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 48.9 million pounds of cheese in export markets. Dairy Products (NASS) reports total 2016 U.S. cheese production, year to date through October, is 9.998 billion pounds, 1.8% above January through October 2015. October 2016 U.S. total cheese production, 1.033 billion pounds, is 4.8% above September 2016. In the West, total cheese production for October 2016 was 435.5 million pounds, 3.6% more than last month. For total cheese production and various types of cheese, October 2016 U.S. and West cheese production percent changes compared to October 2015 are as follows: U.S. West Total Cheese + 0.5% + 1.2% American + 1.4% + 0.6% Cheddar + 0.2% + 1.8% Total Italian + 1.0% + 0.3% Mozzarella - 0.4% - 0.2% Swiss - 2.4% ... The CME Group November 2016 monthly average price for barrels, $1.7424, is up from the October 2016 monthly average of $1.5295, and up from the monthly average of a year ago, $1.5305. Blocks' November average price, $1.8775, is up from the $1.6035 October monthly average, and up from $1.6176 one year ago. In CME Group trading Wednesday, barrels closed at $1.5850, down $.0500 from a week ago and blocks closed at $1.7300, down $.0300. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.7450-2.0025 Cheddar 40# Block : 1.8950-2.3400 Cheddar 10# Cuts : 2.0750-2.2950 Monterey Jack 10# : 2.0850-2.2450 Grade A Swiss Cuts 6 - 9# : 2.8475-3.2775 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago October Total 54.7 + 5 TOTAL, JAN - OCT 514.7 - 13 1 Mexico 161.1 - 4 2 South Korea 74.9 - 32 3 Japan 49.0 - 25 4 Australia 27.6 - 19 5 Canada 23.5 - 2 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