MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  June 28, 2017 (REPORT 26)                          

WEST CHEESE                                                      

Western cheese inventories continue to be long for both barrels and blocks. Industry 
contacts say cheese loads with a little more age are proving harder to move. Domestic 
demand is fair. Food service requests are perhaps slightly lower, but retail demand is 
steady. Cheese seems to be moving well through regular contracts, but end users are not 
asking for a lot of extra loads. Industry contacts hope the price differences between 
U.S. and international markets can help spur on some additional sales, but large volumes 
of exports have yet to materialize. Production is active and is pushed on by plentiful 
milk supplies. The DMN National Retail Report-Dairy for the week of June 23-29 shows the 
U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.31, up $.06 from last week. Packs average $2.48 in the Southwest and $2.40 
in the Northwest. One year ago, the national price was $2.24. For 8 ounce blocks, the 
U.S. price is $2.41, up $.11 from last week. Blocks average $2.47 in the Southwest and 
$2.48 in the Northwest. One year ago, the national price was $2.25. In the West, 
wholesale prices were down $.0525 for process, and down $.0600 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 
1.695 million pounds (769 metric tons) of cheese. So far this year, the program has 
assisted member cooperatives who have contracts to sell 39.953 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 May 2017 were 1.340 billion pounds, up 1 percent from April 
2017 holdings, and up 7 percent from May 2016. American stocks were 12 percent more, 
Swiss stocks were up 5 percent, while other natural stocks were unchanged compared to 
last year. In the Mountain Region, American cheese stocks were 11 percent higher than one 
year earlier, but down 3 percent from one month earlier. Pacific Region American cheese 
stocks were 11 percent more than one year earlier, and 5 percent more than the previous 
month. Also in the Pacific Region, other natural cheese stocks were 13 percent below a 
year ago, and 9 percent lower than a month ago. According to the California Department of 
Food and Agriculture, May 2017 cheese production was 219.6 million pounds, up 2.8 percent 
from a year ago. California year-to-date cheese production through April is 1.050 billion 
pounds, up 0.5 percent from 2016 cheese production through May. In CME Group trading 
Wednesday, barrels closed at $1.3700, up $.0125 from a week ago and blocks closed at 
$1.5100, down $.0500. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.4325-1.6900     
Cheddar 40# Block                            : 1.6925-2.1375     
Cheddar 10# Cuts                             : 1.8725-2.0925     
Monterey Jack 10#                            : 1.8825-2.0425     
Grade A Swiss Cuts 6 - 9#                    : 2.7775-3.2075     


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