MD_DA840 DA MD DA840 Cheese - West MADISON, WI. April 5, 2017 (REPORT 14) WEST CHEESE Cheese production in the West is strong as milk continues to be readily available. Industry contacts report a few spot loads of milk available at discounted prices. Some cheesemakers are taking on more milk for cheese production. Inventories are increasing while domestic demand is a little lackluster. Exports have been a little slow to develop, but are expected to rise in the coming weeks if U.S. and international prices stay close. Some industry contacts are hoping for a higher demand that could contribute to an upward price movement. The DMN National Retail Report-Dairy for the week of March 31-April 6 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.20, up $.09 from last week. Packs average $2.46 in the Southwest and $2.00 in the Northwest. One year ago, the national price was $2.36. For 8 ounce blocks, the U.S. price is $2.19, up $.07 from last week. Blocks average $2.46 in the Southwest and $1.77 in the Northwest. One year ago, the national price was $2.15. In the West, wholesale prices are up $.0150 for process, and up $.0400 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 2.01 million pounds (911 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 23.49 million pounds of cheese in export markets. Dairy Products (NASS) reports total 2017 U.S. cheese production, year to date through February, is 1.99 billion pounds, 1.4% above January through February 2016. February 2017 U.S. total cheese production, 941.7 million pounds, is 1.4% below January 2016. In the West, total cheese production for February 2017 was 392.9 million pounds, 11.0% less than last month. For total cheese production and various types of cheese, February 2017 U.S. and West cheese production percent changes compared to February 2016 are as follows: U.S. West Total Cheese - 1.4% - 4.5% American + 1.7% - 0.4% Cheddar + 6.9% + 7.1% Total Italian - 4.0% - 9.1% Mozzarella - 5.1% - 9.3% Swiss - 2.0% ... The CME Group March 2017 monthly average price for barrels, $1.4072, is down from the February 2017 monthly average of $1.6230, and down from the monthly average of a year ago, $1.4530. Blocks' March average price, $1.4342, is down from the $1.6199 February monthly average, and down from $1.4877 one year ago. In CME Group trading Wednesday, barrels closed at $1.4575, up $.0875 from a week ago and blocks closed at $1.5000, up $.0550. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.4875-1.7450 Cheddar 40# Block : 1.5975-2.0425 Cheddar 10# Cuts : 1.7775-1.9975 Monterey Jack 10# : 1.7875-1.9475 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 February 58.1 + 8 TOTAL, JAN - FEB 108.1 + 6 1 Mexico 29.0 - 17 2 South Korea 16.7 + 17 3 Australia 10.2 + 88 4 Japan 8.9 - 19 5 Canada 4.8 + 52 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