MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  January 25, 2017 (REPORT 4)                        

WEST CHEESE                                                      

Western cheese production is active and cheesemakers report good supplies of milk used 
for manufacturing. Cheese demand has remained fairly steady after a strong holiday 
season. Price fluctuations are prompting buyers in export markets to make a few more 
purchases. Domestic retail, cut and wrap, and food service demand has remained solid. 
And, the demand for cheese destined for pizzas is strong amid the football playoffs and 
Super Bowl. Inventories for fresh cheese blocks are in good supply, but do not appear to 
be overly heavy. Barrel stocks are still long. The DMN National Retail Report-Dairy for 
the week of January 20-26 shows the U.S. weighted average advertised retail price for an 
8 ounce pack of natural shredded cheese is $2.22, up $.10 from last week. Packs average 
$2.55 in the Southwest and $1.91 in the Northwest. One year ago, the national price was 
$2.39. For 8 ounce blocks, the U.S. price is $2.20, up $.04 from last week. Blocks 
average $2.36 in the Southwest and $1.67 in the Northwest. One year ago, the national 
price was $2.33. In the West, wholesale prices are down $.0375 for process, and down 
$.0150 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are 
unchanged. This week, a cooperative export assistance program accepted 24 requests for 
export assistance to sell 3.380 million pounds (1,533 metric tons) of cheese. So far this 
year, the program has assisted member cooperatives who have contracts to sell 3.4 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 December 2016 were 1.207 billion pounds, 
up 2% from November 2016 holdings, and up 5% from December 2015. American stocks were 4% 
more, other natural stocks were 8% more, and Swiss stocks were unchanged compared to last 
year. In the Mountain Region, American cheese stocks were 12% lower than one year 
earlier, but up 6% from one month earlier. Pacific Region American cheese stocks were 2% 
less than one year earlier, but 7% more than the previous month. Also in the Pacific 
Region, other natural cheese stocks were 17% above a year ago, and up 7% from a month 
ago. In CME Group trading Wednesday, barrels closed at $1.4600, down $.1500 from a week 
ago and blocks closed at $1.6400, down $.0525. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6650-1.9225     
Cheddar 40# Block                            : 1.8325-2.2775     
Cheddar 10# Cuts                             : 2.0125-2.2325     
Monterey Jack 10#                            : 2.0225-2.1825     
Grade A Swiss Cuts 6 - 9#                    : 2.6725-3.1025     

       2016 U.S. Cheese Imports (USDA-FAS)

                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota

December Quota         30.2          + 38.1           10.1

TOTAL, JAN - DEC
   High Tier        Not available at time of publication.
   Quota              232.2          +  3.3           77.7


1530CT Mike.Bandli@ams.usda.gov 605-557-7010
Angel.Teran@ams.usda.gov
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