MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  March 29, 2017 (REPORT 13)                         

WEST CHEESE                                                      

Western cheese production continues to be active. Milk volumes are plentiful and clearing 
into the vats. Some contacts believe that the spring flush is right around the corner. A 
few cheese plants seem to be running below capacity, but for the most part, cheese 
processors are operating at or near full capacity. Cheese is moving well through 
contracts, but any additional demand is light. Orders for processed cheese are slower and 
some market participants are hoping for favorable spring weather to prompt the summer 
grilling season. Barrel cheese supplies are abundant, somewhat due to additional 
manufacturing plants coming on line in other regions. Industry contacts suggest 
warehouses are getting filled, and available storage space is hard to find. Block cheese 
inventories are ample. The DMN National Retail Report-Dairy for the week of March 24-30 
shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural 
shredded cheese is $2.11, down $.17 from last week. Packs average $2.08 in the Southwest 
and $2.03 in the Northwest. One year ago, the national price was $2.28. For 8 ounce 
blocks, the U.S. price is $2.12, down $.06 from last week. Blocks average $2.10 in the 
Southwest and $1.96 in the Northwest. One year ago, the national price was $2.51. In the 
West, wholesale prices are up $.0150 for process, and up $.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 
2.381 million pounds (1,088 metric tons) of cheese. So far this year, the program has 
assisted member cooperatives who have contracts to sell 21.483 million pounds of cheese 
in export markets. According to the California Department of Food and Agriculture, 
February 2017 cheese production was 192.1 million pounds, down 3.6% from a year ago. 
California year-to-date cheese production through February is 0.403 billion pounds, down 
2.7% from 2016 cheese production through February. In CME Group trading Wednesday, 
barrels closed at $1.3700, down $.0400 from a week ago and blocks closed at $1.4450, down 
$.0050. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.4725-1.7300     
Cheddar 40# Block                            : 1.5575-2.0025     
Cheddar 10# Cuts                             : 1.7375-1.9575     
Monterey Jack 10#                            : 1.7475-1.9075     
Grade A Swiss Cuts 6 - 9#                    : 2.9575-3.3875     


1530CT Mike.Bandli@ams.usda.gov 608-422-8592, Florence.KoneGonzalez@ams.usda.gov 
608-422-8594
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