MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  December 21, 2016 (REPORT 51)                      

WEST CHEESE                                                      

Western cheese makers report good consumer demand continuing through the early 
part of the week. Holiday shipments have been made and industry contacts expect 
orders to slow over the winter holidays. Domestic demand has helped offset the 
lack of abundant export opportunities and has provided some price support for 
current cheese production. End users are making regular purchases and cheese is 
moving well through existing contracts. Some contacts suggest their purchases 
would be more active if price levels were lower. According to some buyers, there 
is plenty of cheese in inventories across the region. Cheese barrels are long and 
some buyers are making purchases at heavily discounted prices for barrels that 
have a little more age. These contacts say blocks are also in good supply, 
tighter than barrels, but no shortage and on hand for most processing needs. 
Cheese production is active with milk more readily available from bottling 
channels. The DMN National Retail Report-Dairy for the week of December 16-22 
shows the U.S. weighted average advertised retail price for an 8 ounce pack of 
natural shredded cheese is $2.14, up $.03 from last week. Packs average $2.20 in 
the Southwest and $2.00 in the Northwest. One year ago, the national price was 
$2.27. For 8 ounce blocks, the U.S. price is $2.23, up $.33 from last week. 
Blocks average $2.23 in the Southwest. There were no reported sale prices in the 
Northwest this week. One year ago, the national price was $2.22. In the West, 
wholesale prices are up $.1000 for process, and up $.0350 for cheddar block, 
cuts, and Monterey Jack. Swiss cut wholesale prices are unchanged. This week, a 
cooperative export assistance program accepted requests for 228,178 pounds (104 
metric tons) of cheese. So far this year, the program has assisted member 
cooperatives who have contracts to sell 51.6 million pounds of cheese in export 
markets. In CME Group trading Wednesday, barrels closed at $1.5675, down $.1475 
from a week ago and blocks closed at $1.7000, down $.0575.


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7925-2.0500     
Cheddar 40# Block                            : 1.8650-2.3100     
Cheddar 10# Cuts                             : 2.0450-2.2650     
Monterey Jack 10#                            : 2.0550-2.2150     
Grade A Swiss Cuts 6 - 9#                    : 2.8475-3.2775     


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