MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  February 15, 2017 (REPORT 7)                       

WEST CHEESE                                                      

Western cheese makers say domestic cheese demand is nothing spectacular right now. Some 
industry contacts describe the cheese market as being in a type of post-holiday/post-
Super Bowl lull. Current contracts are creating a good draw on stocks, but buyers appear 
hesitant to purchase much extra. In addition, lower prices have yet to attract a lot of 
large volume export buyers. A few cheese makers are buying some extra loads of milk to 
stay current on contracted obligations, while other cheese makers would like to ease back 
on production to limit the stock built up prior to the spring flush. Inventories are 
generally long on barrels and only slightly better for cheese blocks. The DMN National 
Retail Report-Dairy for the week of February 10-16 shows the U.S. weighted average 
advertised retail price for an 8 ounce pack of natural shredded cheese is $2.36, up $.13 
from last week. Packs average $2.83 in the Southwest and $2.19 in the Northwest. One year 
ago, the national price was $2.22. For 8 ounce blocks, the U.S. price is $2.26 up $.11 
from last week. Blocks average $2.63 in the Southwest and $2.11 in the Northwest. One 
year ago, the national price was $2.22. In the West, wholesale prices are up $.0875 for 
process, but down $.1125 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale 
prices are unchanged. This week, a cooperative export assistance program accepted 13 
requests for export assistance on contracts to sell 2.048 million pounds (929 metric 
tons) of cheese. So far this year, the program has assisted member cooperatives who have 
contracts to sell 7.0 million pounds of cheese in export markets. In CME Group trading 
Wednesday, barrels closed at $1.6500, down $.0350 from a week ago and blocks closed at 
$1.6050, down $.0150. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7575-2.0150     
Cheddar 40# Block                            : 1.7625-2.2075     
Cheddar 10# Cuts                             : 1.9425-2.1625     
Monterey Jack 10#                            : 1.9525-2.1125     
Grade A Swiss Cuts 6 - 9#                    : 2.8875-3.3175     


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