MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  April 19, 2017 (REPORT 16)                         

WEST CHEESE 

Cheese production in the West is active as manufacturers are working at full 
capacity, processing abundant milk supplies. Stocks for barrels are still sloppy, but 
blocks supplies are mixed. Commodity type cheese is more plentiful in the dairy 
market, while high quality blocks are more limited. Several fast food chains are 
making a move to use more natural cheese on their menus. As a result, some market 
participants are watching this closely to see how it will impact demand between 
natural and process cheeses. Cheese is moving well within contracts, but spot sales 
are limited. A number of contacts report that some cheese buyers are taking a wait 
and see approach, hoping for favorable prices in the coming weeks. The market 
undertone is unsteady. The DMN National Retail Report-Dairy for the week of April 14-20 
shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural 
shredded cheese is $2.31, up $.08 from last week. Packs average $2.23 in the Southwest 
and $2.40 in the Northwest. One year ago, the national price was $2.50. For 8 ounce 
blocks, the U.S. price is $2.32, up $.21 from last week. Blocks average $2.86 in the 
Southwest and $3.00 in the Northwest. One year ago, the national price was $2.33. In the 
West, wholesale prices are down $.0325 for process, and down $.0300 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 2.335 million pounds (1059 metric tons) of cheese. So far this year, 
the program has assisted member cooperatives who have contracts to sell 28.432 million 
pounds of cheese in export markets. In CME Group trading Wednesday, barrels closed at 
$1.4000, down $.0275 from a week ago and blocks closed at $1.4750, no change from last 
week.

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                
Process 5# Loaf                              : 1.5100-1.7675     
Cheddar 40# Block                            : 1.5925-2.0375     
Cheddar 10# Cuts                             : 1.7725-1.9925     
Monterey Jack 10#                            : 1.7825-1.9425     
Grade A Swiss Cuts 6 - 9#                    : 2.8875-3.3175  

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