MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  March 22, 2017 (REPORT 12)                         

WEST CHEESE                                                      

Western cheese production is strong and actively working to clear available milk. 
Cheese makers say there is plenty of milk available and intakes are in good 
balance with processing needs. Industry contacts note cheese is moving steadily 
through current contracted agreements and new sales appear to be pulling out of 
the winter doldrums. A few manufacturers suggest the active sales have drawn down 
inventories somewhat. The consensus of opinion, however, is that cheese 
inventories are still long, especially for barrel cheese. Some manufacturers who 
do not rely on storage indicate that orders are able to keep pace with current 
production. The DMN National Retail Report-Dairy for the week of March 17-23 
shows the U.S. weighted average advertised retail price for an 8 ounce pack of 
natural shredded cheese is $2.28, down $.03 from last week. Packs average $2.38 
in the Southwest and $3.50 in the Northwest. One year ago, the national price was 
$2.07. For 8 ounce blocks, the U.S. price is $2.18, down $.07 from last week. 
Blocks average $3.10 in the Southwest and $2.50 in the Northwest. One year ago, 
the national price was $2.20. In the West, wholesale prices are down $.0450 for 
process, and down $.0600 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 3.523 
million pounds (1,598 metric tons) of cheese. So far this year, the program has 
assisted member cooperatives who have contracts to sell 19.1 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 February 2017 were 1.257 billion pounds, 
up 3% from January 2017 holdings, and up 6% from February 2016. American stocks 
were 8% more, other natural stocks were 3% more, and Swiss stocks were up 10% 
compared to last year. In the Mountain Region, American cheese stocks were 8% 
higher than one year earlier, and up 9% from one month earlier. Pacific Region 
American cheese stocks were 1% more than one year earlier, and 4% more than the 
previous month. Also in the Pacific Region, other natural cheese stocks were 13% 
above a year ago, but 2% less than a month ago. In CME Group trading Wednesday, 
barrels closed at $1.4100, up $.0350 from a week ago and blocks closed at 
$1.4500, up $.0900. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.4575-1.7150     
Cheddar 40# Block                            : 1.4975-1.9425     
Cheddar 10# Cuts                             : 1.6775-1.8975     
Monterey Jack 10#                            : 1.6875-1.8475     
Grade A Swiss Cuts 6 - 9#                    : 2.9575-3.3875     


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