MD_DA840 DA MD DA840 Cheese - West MADISON, WI. May 10, 2017 (REPORT 19) WEST CHEESE Western manufacturers report steady cheese production as milk supplies are plentiful. Cheese makers are running facilities at or near full capacity to handle the milk. Industry contacts say there are large stocks of barrels, but cheese block inventories are in better balance. Cheese is generally moving well through existing contracts and some cheese makers report orders are up. A few industry contacts say retail demand is steady and export opportunities are improving. Domestic demand for American cheese varieties has been a little slow to develop due to unfavorable grilling weather, however contacts suggest this, too, may be picking up. The DMN National Retail Report-Dairy for the week of May 5-11 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.22, up $.14 from last week. Packs average $2.14 in the Southwest and $1.66 in the Northwest. One year ago, the national price was $2.24. For 8 ounce blocks, the U.S. price is $2.16, up $.15 from last week. Blocks average $2.11 in the Southwest and $1.99 in the Northwest. One year ago, the national price was $2.11. In the West, wholesale prices are down $.0025 for process, and down $.0250 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are up $.0125. This week, a cooperative export assistance program accepted requests for export assistance on contracts to sell 1 million pounds (461 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 30.7 million pounds of cheese in export markets. Dairy Products (NASS) reports total 2017 U.S. cheese production, year to date through March, is 3.050 billion pounds, 1.6% above January through March 2016. March 2017 U.S. total cheese production, 1.062 billion pounds, is 12.7% above February 2017. In the West, total cheese production for March 2017 was 446.0 million pounds, 13.5% more than last month. For total cheese production and various types of cheese, March 2017 U.S. and West cheese production percent changes compared to March 2016 are as follows: U.S. West Total Cheese + 3.3% + 0.2% American + 3.5% - 2.5% Cheddar + 8.0% + 1.0% Total Italian + 2.2% + 1.1% Mozzarella + 0.9% + 0.6% Swiss + 3.7% ... In CME Group trading Wednesday, barrels closed at $1.4600, up $.0600 from a week ago and blocks closed at $1.6000, up $.1200. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.5025-1.7600 Cheddar 40# Block : 1.6300-2.0750 Cheddar 10# Cuts : 1.8100-2.0300 Monterey Jack 10# : 1.8200-1.9800 Grade A Swiss Cuts 6 - 9# : 2.9000-3.3300 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago March 68.7 + 22 TOTAL, JAN - MAR 176.7 + 12 1 Mexico 51.8 - 5 2 South Korea 27.9 + 29 3 Japan 15.6 - 15 4 Australia 15.2 + 95 5 Canada 7.2 + 29 2017 U.S. Cheese and Curd Imports (USDA-FAS) 2017 Imports % Change From (Million Lb.) Last Month March Imports TOTAL Cheese and Curd (H.S. Code 0406) 35.2 + 32 Cheese, Except Fresh (H.S. Code 040690) 30.7 + 34 Fresh Cheese (H.S. Code 040610) 2.4 + 16 Cheese, Processed (H.S. Code 040630) 1.5 + 10 Cheese, Blue-Veined (H.S. Code 040640) 0.6 + 16 Cheese, Grated (H.S. Code 040620) 0.1 +168 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - MAR 93.3 - 22 1 Italy 15.9 - 12 2 France 10.6 - 4 3 New Zealand 10.1 - 43 4 Netherlands 6.3 + 10 5 Spain 5.8 - 2 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