MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  May 31, 2017 (REPORT 22)                           

WEST CHEESE                                                      

Western cheese industry contacts report steady demand. Cheese is moving well through 
regular contracts, but buyers are not seeking a lot of additional loads. Some export 
opportunities are developing as U.S. cheese prices coincide well with international 
prices and the dollar has weakened a little against other currencies. A few industry 
contacts say warehouses are full and that warehouse operators are charging premiums for 
any additional space. Contacts further suggest barrels are heavy, but blocks are tight. 
Cheese with a little age is harder to move and adding to inventories. Cheese production 
is active and following the wave of milk production. The DMN National Retail Report-Dairy 
for the week of May 26-June 1 shows the U.S. weighted average advertised retail price for 
an 8 ounce pack of natural shredded cheese is $2.19, up $.01 from last week. Packs 
average $2.17 in the Southwest and $2.33 in the Northwest. One year ago, the national 
price was $2.19. For 8 ounce blocks, the U.S. price is $2.07, down $.19 from last week. 
Blocks average $2.13 in the Southwest and $1.88 in the Northwest. One year ago, the 
national price was $2.24. In the West, wholesale prices were down $.0200 for process, but 
up $.0225 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 3.536 million pounds (1,604 metric tons) of 
cheese. So far this year, the program has assisted member cooperatives who have contracts 
to sell 37.709 million pounds of cheese in export markets. According to the California 
Department of Food and Agriculture, April 2017 cheese production was 210.4 million 
pounds, up 4.4% from a year ago. California year-to-date cheese production through April 
is 830.1 million pounds, down 0.1% from 2016 cheese production through April. In CME 
Group trading Wednesday, barrels closed at $1.5450, up $.0825 from a week ago and blocks 
closed at $1.7450, up $.0800. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5650-1.8225     
Cheddar 40# Block                            : 1.8075-2.2525     
Cheddar 10# Cuts                             : 1.9875-2.2075     
Monterey Jack 10#                            : 1.9975-2.1575     
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