MD_DA840 DA MD DA840 Cheese - West MADISON, WI. March 08, 2017 (REPORT 10) WEST CHEESE Western cheese contacts say consumption has eased back since the passing of the winter holidays and the Super Bowl. Buyers have been slow to return. Domestic demand is light and significant volumes of cheese exports have yet to materialize. In some international markets, U.S. cheese is facing stiff price competition from European cheeses. Inventories for western cheese barrels are very long and blocks are readily available. A few contacts suggest the warehouses are full of barrel cheese in the West. Some end users report buying large volumes of steeply discounted cheese from manufacturers, but finding it difficult to gain access to storage space. Cheese production is active and adding to the heavy western cheese inventories. The DMN National Retail Report-Dairy for the week of March 3-9 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.21, up $.09 from last week. Packs average $2.28 in the Southwest and $2.06 in the Northwest. One year ago, the national price was $2.28. For 8 ounce blocks, the U.S. price is $2.15, up $.09 from last week. Blocks average $2.35 in the Southwest and $1.92 in the Northwest. One year ago, the national price was $2.29. In the West, wholesale prices are down $.0800 for process, and down $.0375 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are up $.0700. This week, a cooperative export assistance program accepted requests for export assistance on contracts to sell 4.616 million pounds (2,094 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 15.6 million pounds of cheese in export markets. Dairy Products (NASS) reports January 2017 U.S. total cheese production, 1.040 billion pounds, is 1.2% below December 2016. In the West, total cheese production for January 2017 was 441.4 million pounds, 1.6% less than last month. For total cheese production and various types of cheese, January 2017 U.S. and West cheese production percent changes compared to January 2016 are as follows: U.S. West Total Cheese + 3.7% + 3.1% American + 3.0% - 0.1% Cheddar + 3.5% + 1.9% Total Italian + 3.8% + 6.3% Mozzarella + 4.5% + 7.4% Swiss - 5.4% ... The CME Group February 2017 monthly average price for barrels, $1.6230, is up from the January 2017 monthly average of $1.5573, and up from the monthly average of a year ago, $1.4573. Blocks' February average price, $1.6199, is down from the $1.6866 January monthly average, but up from $1.4744 one year ago. In CME Group trading Wednesday, barrels closed at $1.4500, down $.0150 from a week ago and blocks closed at $1.4400, down $.0500. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.5550-1.8125 Cheddar 40# Block : 1.6325-2.0775 Cheddar 10# Cuts : 1.8125-2.0325 Monterey Jack 10# : 1.8225-1.9825 Grade A Swiss Cuts 6 - 9# : 2.9575-3.3875 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago TOTAL, JANUARY 50.0 + 3 1 Mexico 12.0 - 28 2 South Korea 7.3 + 20 3 Australia 4.8 + 63 4 Japan 4.1 - 28 5 Canada 2.4 + 83 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