MD_DA840 DA MD DA840 Cheese - West MADISON, WI. June 07, 2017 (REPORT 23) WEST CHEESE Western cheese production is active and many facilities are running at or near full capacity. Milk is readily available for most processing needs. Domestic retail demand remains good. Some manufacturers say they are currently getting more inquiries from export buyers, but this business has yet to fully develop. Cheese makers are welcoming any additional business. Inventories are generally heavy, especially for barrel cheese. Stocks of mozzarella are growing seasonally with schools out for the summer and demand for pizza entering the low point for the year. Industry contacts suggest the current spread between block and barrel prices at the CME is putting a lot of price pressure on barrel cheese producers. The DMN National Retail Report-Dairy for the week of June 2-8 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.28, up $.09 from last week. Packs average $2.48 in the Southwest and $2.41 in the Northwest. One year ago, the national price was $2.23. For 8 ounce blocks, the U.S. price is $2.26, up $.19 from last week. Blocks average $2.38 in the Southwest and $1.67 in the Northwest. One year ago, the national price was $2.26. In the West, wholesale prices were up $.0450 for process, cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are down $.1225. Dairy Products (NASS) reports total 2017 U.S. cheese production, year to date through April, is 4.088 billion pounds, 2.1 percent above January through April 2016. April 2017 U.S. total cheese production, 1.039 billion pounds, is 2.1 percent% below March 2017. In the West, total cheese production for April 2017 was 445.1 million pounds, 0.2 percent less than last month. For total cheese production and various types of cheese, April 2017 U.S. and West cheese production percent changes compared to April 2016 are as follows: U.S. West Total Cheese + 3.7 + 4.3 American + 5.3 + 3.9 Cheddar + 4.8 + 3.0 Total Italian + 2.2 + 4.6 Mozzarella + 2.3 + 4.2 Swiss + 7.2 ... The CME Group May 2017 monthly average price for barrels, $1.4806, is up from the April 2017 monthly average of $1.4307, and up from the monthly average of a year ago, $1.3529. Blocks' May average price, $1.6264, is up from the $1.4976 April monthly average, and up from $1.3174 one year ago. In CME Group trading Wednesday, barrels closed at $1.4250, down $.1200 from a week ago and blocks closed at $1.6500, down $.0950. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.6100-1.8675 Cheddar 40# Block : 1.8525-2.2975 Cheddar 10# Cuts : 2.0325-2.2525 Monterey Jack 10# : 2.0425-2.2025 Grade A Swiss Cuts 6 - 9# : 2.7775-3.2075 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago April 59.3 + 27 TOTAL, JAN - APR 236.0 + 15 1 Mexico 68.4 ... 2 South Korea 38.1 + 37 3 Japan 21.1 - 6 4 Australia 20.4 +121 5 Canada 9.0 + 10 Cheese and Curd Imports (USDA-FAS) (Imports for Consumption) 2017 Imports % Change From (Million Lb.) Last Month April Imports TOTAL Cheese and Curd (H.S. Code 0406) 33.5 - 5 Cheese, Except Fresh (H.S. Code 040690) 29.3 - 4 Fresh Cheese (H.S. Code 040610) 2.3 - 5 Cheese, Processed (H.S. Code 040630) 1.0 - 33 Cheese, Blue-Veined (H.S. Code 040640) 0.7 + 12 Cheese, Grated (H.S. Code 040620) 0.2 + 73 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - APR 126.8 - 16 1 Italy 22.8 - 5 2 France 13.7 - 4 3 New Zealand 12.8 - 37 4 Netherlands 9.4 + 18 5 Spain 7.8 - 1 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