MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  February 1, 2017 (REPORT 5)                        

WEST CHEESE                                                      

Western cheese makers report good milk supplies continue to push cheese 
manufacturing. Processors say there is no problem getting enough milk for their 
needs and they are mostly content with the milk available to them. Cheese makers 
are willing to buy a few extra loads of milk, but only if the price is right. 
Inventories for both blocks and barrels are building. Although industry contacts 
suggest domestic retail and food service demand is good, the market has hit a 
lull between winter and spring holidays and after dairy products slotted for 
Super Bowl consumption have shipped. The DMN National Retail Report-Dairy for the 
week of January 27-February 2 shows the U.S. weighted average advertised retail 
price for an 8 ounce pack of natural shredded cheese is $2.19, down $.03 from 
last week. Packs average $1.97 in the Southwest and $2.17 in the Northwest. One 
year ago, the national price was $2.34. For 8 ounce blocks, the U.S. price is 
$2.05 down $.15 from last week. Blocks average $1.83 in the Southwest and $2.00 
in the Northwest. One year ago, the national price was $2.20. In the West, 
wholesale prices are down $.1200 for process, and down $.0525 for cheddar block, 
cuts, and Monterey Jack. Swiss cut wholesale prices are unchanged. According to 
the California Department of Food and Agriculture, December 2016 cheese 
production was 217.3 million pounds, up 0.3% from a year ago. California year-to-
date cheese production through December is 2.515 billion pounds, up 3.3% from 
2015 cheese production through December. In CME Group trading Wednesday, barrels 
closed at $1.5775, up $.1175 from a week ago and blocks closed at $1.7500, up 
$.1100. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5450-1.8025     
Cheddar 40# Block                            : 1.7800-2.2250     
Cheddar 10# Cuts                             : 1.9600-2.1800     
Monterey Jack 10#                            : 1.9700-2.1300     
Grade A Swiss Cuts 6 - 9#                    : 2.6725-3.1025     


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