MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  June 14, 2017 (REPORT 24)                          

WEST CHEESE                   

In the Western region, cheese production is ongoing. Additional milk supplies are 
available to cheese manufacturers as most educational institutions are closed for the 
summer break. Cheese inventories are currently high, mostly for mozzarella. Demand is 
strong and steady, mostly geared toward fulfilling near term contracts. However, spot 
sales are lighter. With the recent decrease in CME price, some buyers are expecting 
prices to continue to trend down in the coming weeks. As the result, they are holding off 
on adding new stocks at current prices. A number of industry contacts suggest that export 
opportunities to Asia are increasing due to U.S prices being below international market 
prices. 

                      
The DMN National Retail Report-Dairy for the week of June 9-15 shows the U.S. weighted 
average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.37, 
up $.09 from last week. Packs average $2.56 in the Southwest and $2.40 in the Northwest. 
One year ago, the national price was $2.39. For 8 ounce blocks, the U.S. price is $2.41, 
up $.15 from last week. Blocks average $2.39 in the Southwest and $2.31 in the Northwest. 
One year ago, the national price was $2.23. In the West, wholesale prices were down 
$.1000 for process, and down $.0800 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 548,951 pounds (249 metric 
tons) of cheese. So far this year, the program has assisted member cooperatives who have 
contracts to sell 38.257 million pounds of cheese in export markets. In CME Group trading 
Wednesday, barrels closed at $1.4025, down $.0225 from a week ago and blocks closed at 
$1.6300, down $.0200. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5100-1.7675     
Cheddar 40# Block                            : 1.7725-2.2175     
Cheddar 10# Cuts                             : 1.9525-2.1725     
Monterey Jack 10#                            : 1.9625-2.1225     
Grade A Swiss Cuts 6 - 9#                    : 2.7775-3.2075     

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