MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  February 22, 2017 (REPORT 8)                       

WEST CHEESE                                                      

Western cheese production is steady and active. Although poor weather conditions in parts 
of the West have suppressed milk intakes, manufacturers are able to acquire loads of milk 
or condensed skim from inside and outside the region to keep production schedules full. 
Demand is seasonally lower at this time of year, but many processors are seeing a steady 
pull of cheese stocks from regular customers. New inquiries for cheese are a little slow 
to develop. Cheese stocks are rising and most industry contacts suggest both barrel and 
block inventories are heavy. The DMN National Retail Report-Dairy for the week of 
February 17-23 shows the U.S. weighted average advertised retail price for an 8 ounce 
pack of natural shredded cheese is $2.31, down $.05 from last week. Packs average $2.54 
in the Southwest and $2.29 in the Northwest. One year ago, the national price was $2.37. 
For 8 ounce blocks, the U.S. price is $2.30 up $.04 from last week. Blocks average $2.56 
in the Southwest and $2.78 in the Northwest. One year ago, the national price was $2.32. 
In the West, wholesale prices are down $.0350 for process, and down $.0375 for cheddar 
block, cuts, and Monterey Jack. Swiss cut wholesale prices are unchanged. This week, a 
cooperative export assistance program accepted 6 requests for export assistance on 
contracts to sell 1.347 million pounds (611 metric tons) of cheese. So far this year, the 
program has assisted member cooperatives who have contracts to sell 8.4 million pounds of 
cheese in export markets. In CME Group trading Wednesday, barrels closed at $1.5700, down 
$.0800 from a week ago and blocks closed at $1.5100, down $.0950. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7225-1.9800     
Cheddar 40# Block                            : 1.7250-2.1700     
Cheddar 10# Cuts                             : 1.9050-2.1250     
Monterey Jack 10#                            : 1.9150-2.0750     
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