MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  December 28, 2016 (REPORT 52)                      

WEST CHEESE                                                      

Western cheese production is strong with ample supplies of milk available during the 
winter holiday season. Some industry contacts note larger volumes of milk moving into the 
major western cheese production areas at discounted prices. Domestic demand for cheese 
remains good and some cheese makers feel December sales were better than they have seen 
for a few years. Manufacturers are hopeful that 2017 will bring more export 
opportunities. Cheese prices continue to roll back somewhat. Barrels are abundant and 
commonly trading at discounts to current market prices. Inventories of blocks are 
comfortable and generally available for most buyer needs. The DMN National Retail Report-
Dairy for the week of December 23-29 shows the U.S. weighted average advertised retail 
price for an 8 ounce pack of natural shredded cheese is $2.07, down $.07 from last week. 
Packs average $2.22 in the Southwest and $1.94 in the Northwest. One year ago, the 
national price was $2.27. For 8 ounce blocks, the U.S. price is $2.16, down $.07 from 
last week. Blocks average $2.66 in the Southwest and $1.86 in the Northwest. One year 
ago, the national price was $2.19. In the West, wholesale prices are down $.0800 for 
process, and down $.0300 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale 
prices are unchanged. This week, a cooperative export assistance program accepted 
requests for 436,515 pounds (198 metric tons) of cheese. So far this year, the program 
has assisted member cooperatives who have contracts to sell 50.3 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 November 2016 were 1.180 billion pounds, down 3% from 
October 2016 holdings, but up 3% from November 2015. American stocks were 2% more, other 
natural stocks were 4% more, and Swiss stocks were up 10% compared to last year. In the 
Mountain Region, American cheese stocks were 22% lower than one year earlier, and 
unchanged from one month earlier. Pacific Region American cheese stocks were 7% less than 
one year earlier, and 5% less than the previous month. Also in the Pacific Region, other 
natural cheese stocks were 11% above a year ago, but down 12% from a month ago. In CME 
Group trading Wednesday, barrels closed at $1.5575, down $.0100 from a week ago and 
blocks closed at $1.6675, down $.0325. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7125-1.9700     
Cheddar 40# Block                            : 1.8350-2.2800     
Cheddar 10# Cuts                             : 2.0150-2.2350     
Monterey Jack 10#                            : 2.0250-2.1850     
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