MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  January 04, 2017 (REPORT 1)                        

WEST CHEESE                                                      

Western cheese makers report good demand for cheese has continued past the winter 
holidays. Although sales have slowed somewhat, buyers seem willing to make orders 
if price points are favorable. Domestic demand for branded cheese is solid. A few 
manufacturers report much of their 2017 contracted cheese business is in place 
for retail and wholesale accounts. Cheese production is active and milk is in 
good supply. A few processors are seeking out additional loads of milk to meet 
current orders. Industry contacts report a lot of aged blocks and barrels are in 
warehouses across the region. Contacts say supplies of fresh cheese blocks are 
tighter, but still in good supply for customer needs. The DMN National Retail 
Report-Dairy for the week of December 30-January 5 shows the U.S. weighted average 
advertised retail price for an 8 ounce pack of natural shredded cheese is $2.20, up $.13 
from last week. Packs average $2.38 in the Southwest and $2.20 in the Northwest. One year 
ago, the national price was $2.24. For 8 ounce blocks, the U.S. price is $2.07, down $.09 
from last week. Blocks average $1.99 in the Southwest and $1.70 in the Northwest. One 
year ago, the national price was $2.01. In the West, wholesale prices are down $.0450 for 
process, and down $.0725 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale 
prices are unchanged. According to the California Department of Food and Agriculture, 
November 2016 cheese production was 209.8 million pounds, up 5.1% from a year ago. 
California year-to-date cheese production through November is 2.298 billion pounds, up 
3.5% from 2015 cheese production through November. The CME Group December 2016 monthly 
average price for barrels, $1.6132, is down from the November 2016 monthly average of 
$1.7424, but up from the monthly average of a year ago, $1.4638. Blocks' December average 
price, $1.7335, is down from the $1.8775 October monthly average, but up from $1.4616 one 
year ago. The average price through the year of 2016 was $1.5562 for barrels and $1.5797 
for blocks. In CME Group trading Wednesday, barrels closed at $1.5950, up $.0375 from a 
week ago and blocks closed at $1.6600, down $.0075. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6400-1.8975     
Cheddar 40# Block                            : 1.7900-2.2350     
Cheddar 10# Cuts                             : 1.9700-2.1900     
Monterey Jack 10#                            : 1.9800-2.1400     
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