MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  May 24, 2017 (REPORT 21)                           

WEST CHEESE  

Cheese production in the Western region is active as some areas are still experiencing 
increasing milk production. Some industry contacts suggest that sales into the 
international market are slightly picking up and the U.S. cheese price is competitive. 
This week, some processors have increased their export opportunity to Mexico, Asia, and 
Australia. Domestic demand varies depending on the type of cheese. At the moment, 
contacts report that the age of the cheese determines the level of demand for both blocks 
and barrels. Overall, inventories for all types of cheese are long and readily available 
in the spot market. The DMN National Retail Report-Dairy for the week of May 19-25 shows 
the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.18, down $.13 from last week. Packs average $2.39 in the Southwest and $1.93 
in the Northwest. One year ago, the national price was $2.23. For 8 ounce blocks, the 
U.S. price is $2.26, up $.01 from last week. Blocks average $2.99 in the Southwest and 
$1.67 in the Northwest. One year ago, the national price was $2.32. In the West, 
wholesale prices were 0.01 for process, and up $.0475 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 2.57 
million pounds (1,165 metric tons) of cheese. So far this year, the program has assisted 
member cooperatives who have contracts to sell 34.17 million pounds of cheese in export 
markets. According to the NASS Cold Storage report, U.S. stocks of cheese (total natural) 
at the end of April 2017 were 1.334 billion pounds, up 3% from March 2017 holdings, and 
up 10% from April 2016. American stocks were 14% more, other natural stocks were 5% more, 
and Swiss stocks were up 10% compared to last year. In the Mountain Region, American 
cheese stocks were 12% higher than one year earlier, and up 1% from one month earlier. 
Pacific Region American cheese stocks were 7% more than one year earlier, and 3% more 
than the previous month. Also in the Pacific Region, other natural cheese stocks were 5% 
above a year ago, and unchanged from a month ago. In CME Group trading Wednesday, barrels 
closed at $1.4625, down $.0375 from a week ago and blocks closed at $1.6650, down $.005. 
                                                  
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5850-1.8425     
Cheddar 40# Block                            : 1.7850-2.2300     
Cheddar 10# Cuts                             : 1.9650-2.1850     
Monterey Jack 10#                            : 1.9750-2.1350     
Grade A Swiss Cuts 6 - 9#                    : 2.9000-3.3300     


1530CT 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