MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  March 1, 2017 (REPORT 9)                       

WEST CHEESE                                                      

Western cheese makers report cheese is moving well through existing contracts. 
Manufacturers are hopeful that softening cheese prices may provide more 
opportunities for export sales. Domestic sales have slowed somewhat and new 
international sales could be a shot in the arm. Industry contacts say inventories 
are long for both barrel and block cheese. Cheese makers are busy with plenty of 
milk moving into cheese vats. The DMN National Retail Report-Dairy for the week 
of February 24-March 2 shows the U.S. weighted average advertised retail price 
for an 8 ounce pack of natural shredded cheese is $2.12, down $.19 from last 
week. Packs average $2.03 in the Southwest and $2.49 in the Northwest. One year 
ago, the national price was $2.26. For 8 ounce blocks, the U.S. price is $2.06, 
down $.24 from last week. Blocks average $1.92 in the Southwest and $2.25 in the 
Northwest. One year ago, the national price was $2.25. In the West, wholesale 
prices are down $.0875 for process, and down $.0550 for cheddar block, cuts, and 
Monterey Jack. Swiss cut wholesale prices are unchanged. This week, a cooperative 
export assistance program accepted requests for export assistance on contracts to 
sell 2.588 million pounds (1.174 metric tons) of cheese. So far this year, the 
program has assisted member cooperatives who have contracts to sell 11.0 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 January 2017 were 1.233 
billion pounds, up 3% from December 2016 holdings, and up 5% from January 2016. 
American stocks were 6% more, other natural stocks were 2% more, but Swiss stocks 
were down 1% compared to last year. In the Mountain Region, American cheese 
stocks were 4% lower than one year earlier, but up 5% from one month earlier. 
Pacific Region American cheese stocks were 6% less than one year earlier, but 1% 
more than the previous month. Also in the Pacific Region, other natural cheese 
stocks were 17% above a year ago, and unchanged from a month ago. According to 
the California Department of Food and Agriculture, January 2017 cheese production 
was 211.0 million pounds, down 1.9% from a year ago. In CME Group trading 
Wednesday, barrels closed at $1.4650, down $.1050 from a week ago and blocks 
closed at $1.4900, down $.0200. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6350-1.8925     
Cheddar 40# Block                            : 1.6700-2.1150     
Cheddar 10# Cuts                             : 1.8500-2.0700     
Monterey Jack 10#                            : 1.8600-2.0200     
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