MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI. April 26, 2017 (REPORT 17)

Milk is plentiful in the Western dairy market. As such, cheese production is strong 
in most parts of the region. Domestic cheese demand is stable. Barrel sales are 
slowly increasing as grilling season is getting close. Commodity type cheese 
continues to be readily accessible to end-users while high quality cheese is harder 
to get. Buyers have abundant supplies, and are hesitant to take additional spot 
loads. In addition, a number of purchasers are limiting their activities in the 
cheese market, hoping that prices in the coming weeks will be more favorable. The DMN 
National Retail Report-Dairy for the week of April 21-27 shows the U.S. weighted average 
advertised retail price for an 8 ounce pack of natural shredded cheese is $2.19, down 
$.12 from last week. Packs average $2.43 in the Southwest and $1.87 in the Northwest. One 
year ago, the national price was $2.37. For 8 ounce blocks, the U.S. price is $2.19, down 
$.13 from last week. Blocks average $2.07 in the Southwest and $1.79 in the Northwest. 
One year ago, the national price was $2.32. In the West, wholesale prices are down $.0150 
for process, but up $.0225 for cheddar block, cuts, and Monterey Jack. Swiss cut 
wholesale prices are unchanged. According to the NASS Cold Storage report, U.S. stocks of 
cheese (total natural) at the end of March 2017 were 1.293 billion pounds, up 3% from 
February 2017 holdings, and up 8% from March 2016. American stocks were 11% more, other 
natural stocks were 5% more, and Swiss stocks were up 6% compared to last year. In the 
Mountain Region, American cheese stocks were 4% lower than one year earlier, but up 4% 
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 7% above a year ago, and 2% higher than a month ago. According to the 
California Department of Food and Agriculture, March 2017 cheese production was 216.6 
million pounds, up 0.8% from a year ago. California year-to-date cheese production 
through March is 0.620 billion pounds, down 1.5% from 2016 cheese production through 
March. In CME Group trading Wednesday, barrels closed at $1.4200, up $.0200 from a week 
ago and blocks closed at $1.5425, up $.0675. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.4950-1.7525     
Cheddar 40# Block                            : 1.6150-2.0600     
Cheddar 10# Cuts                             : 1.7950-2.0150     
Monterey Jack 10#                            : 1.8050-1.9650     
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