MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  January 11, 2017 (REPORT 2)                        

WEST CHEESE                                                      

Western dairy contacts report that although milk intakes are getting used more heavily in 
bottling, there is still plenty of milk available for making cheese. Cheese production is 
active and cheese stocks are slowly rebuilding following the peak holiday demand. 
Industry contacts report block inventories, especially current blocks, are a little 
tight. But supplies of blocks with more age, and barrels are more readily available. 
Domestic cheese draws, although slower than the holiday blitz, are solid. In addition, 
demand for mozzarella is building through the football playoffs and Super Bowl peak pizza 
event. The DMN National Retail Report-Dairy for the week of January 6-12 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded cheese 
is $2.15, down $.05 from last week. Packs average $2.20 in the Southwest and $2.40 in the 
Northwest. One year ago, the national price was $2.17. For 8 ounce blocks, the U.S. price 
is $2.13, up $.06 from last week. Blocks average $1.96 in the Southwest and $1.67 in the 
Northwest. One year ago, the national price was $2.19. In the West, wholesale prices are 
up $.0275 for process, and up $.0025 for cheddar block, cuts, and Monterey Jack. Swiss 
cut wholesale prices are down $.1750. Dairy Products (NASS) reports total 2016 U.S. 
cheese production, year to date through November, is 11.014 billion pounds, 2.0% above 
January through November 2015. November 2016 U.S. total cheese production, 1.011 billion 
pounds, is 2.6% below October 2016. In the West, total cheese production for November 
2016 was 426.3 million pounds, 2.8% less than last month. For total cheese production and 
various types of cheese, November 2016 U.S. and West cheese production percent changes 
compared to November 2015 are as follows:

       U.S.		West
Total Cheese 		+ 2.7% 	+ 1.8%
American 			+ 3.9% 	+ 4.4%
Cheddar 			+ 5.9% 	+ 4.6%
Total Italian 		+ 2.6% 	+ 0.1%
Mozzarella 			+ 1.6% 	+ 0.6%
Swiss 			+ 3.2% 	  ...

In CME Group trading Wednesday, barrels closed at $1.6400, up $.0450 from a week ago and 
blocks closed at $1.7350, up $.0750. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6675-1.9250     
Cheddar 40# Block                            : 1.7925-2.2375     
Cheddar 10# Cuts                             : 1.9725-2.1925     
Monterey Jack 10#                            : 1.9825-2.1425     
Grade A Swiss Cuts 6 - 9#                    : 2.6725-3.1025     


2016 U.S. Cheese and Curd Exports (USDA-FAS)

                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

November Total       55.0            +  9

TOTAL, JAN - NOV    569.7            - 12
 1 Mexico           179.8            -  1
 2 South Korea       82.9            - 29
 3 Japan             54.5            - 23
 4 Australia         29.9            - 16
 5 Canada            26.5            +  1


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