MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  May 17, 2017 (REPORT 20)                           

WEST CHEESE                                                      

Western cheese production is at or near full capacity. In a few cases, contacts report 
cheese plant operators are running into production issues. Other manufacturers have 
scheduled downtime to complete needed repairs or maintenance. Either way, cheese makers 
are facing challenges in processing the plentiful milk. In parts of the Western region, 
condensed skim milk from outside the region and discounted loads of milk are competing 
for processors' attention. Cheese supplies are long, especially for barrels. Inventories 
for block cheese are a little better balanced, but contacts report some offers at heavily 
discounted prices. Traders and manufacturers are eager to move cheese in any market 
possible. The grilling season has begun and domestic retail demand is steady. However, 
some market participants feel the recent price increases in market trading could choke 
off available export opportunities. The DMN National Retail Report-Dairy for the week of 
May 12-18 shows the U.S. weighted average advertised retail price for an 8 ounce pack of 
natural shredded cheese is $2.31, up $.09 from last week. Packs average $2.12 in the 
Southwest and $2.32 in the Northwest. One year ago, the national price was $2.18. For 8 
ounce blocks, the U.S. price is $2.25, up $.09 from last week. Blocks average $1.88 in 
the Southwest and $1.50 in the Northwest. One year ago, the national price was $2.12. In 
the West, wholesale prices are up $.0725 for process, and up $.1075 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 930,351 pounds (422 metric tons) of cheese. So far this year, the 
program has assisted member cooperatives who have contracts to sell 31.6 million pounds 
of cheese in export markets. In CME Group trading Wednesday, barrels closed at $1.5000, 
up $.0400 from a week ago and blocks closed at $1.6700, up $.0700. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5750-1.8325     
Cheddar 40# Block                            : 1.7375-2.1825     
Cheddar 10# Cuts                             : 1.9175-2.1375     
Monterey Jack 10#                            : 1.9275-2.0875     
Grade A Swiss Cuts 6 - 9#                    : 2.9000-3.3300     


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