MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  May 03, 2017 (REPORT 18)                           

WEST CHEESE                                                      

Although processors expect and prepare for the spring flush, the ample supplies of 
milk are placing pressures on some cheese manufacturers. Western cheese production is 
active and cheese makers are trying to figure out how best to balance cheese making 
with available milk intakes. Inventories are heavy, especially for cheese barrels. 
Cheese demand is satisfactory. Buyers are taking contracted shipments, but not 
looking to take any additional loads. In some cases, heavily discounted loads are 
available, and cheese buyers are willing to take extra shipments if the price is 
right. The DMN National Retail Report-Dairy for the week of April 28-May 4 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded cheese 
is $2.08, down $.11 from last week. Packs average $2.19 in the Southwest and $1.88 in the 
Northwest. One year ago, the national price was $2.44. For 8 ounce blocks, the U.S. price 
is $2.01, down $.18 from last week. Blocks average $1.97 in the Southwest and $1.88 in 
the Northwest. One year ago, the national price was $2.32. In the West, wholesale prices 
are up $.0100 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 493,836 pounds (224 
metric tons) of cheese. So far this year, the program has assisted member cooperatives 
who have contracts to sell 29.7 million pounds of cheese in export markets. The CME Group 
April 2017 monthly average price for barrels, $1.4307, is up from the March 2017 monthly 
average of $1.4072, and up from the monthly average of a year ago, $1.4231. Blocks' April 
average price, $1.4976, is up from the $1.4342 March monthly average, and up from $1.4194 
one year ago. In CME Group trading Wednesday, barrels closed at $1.4000, down $.0200 from 
a week ago and blocks closed at $1.4800, down $.0625. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5050-1.7625     
Cheddar 40# Block                            : 1.6550-2.1000     
Cheddar 10# Cuts                             : 1.8350-2.0550     
Monterey Jack 10#                            : 1.8450-2.0050     
Grade A Swiss Cuts 6 - 9#                    : 2.8875-3.3175     


1530CT Mike.Bandli@ams.usda.gov 608-422-8592
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