MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  July 5, 2017 (REPORT 27)                          

WEST CHEESE
 
In the Western region, cheese production is strong due to higher volumes of milk 
available to processors. Although they are mostly limiting their intakes to 
contractual needs, cheese demand from end-users/buyers is good. Spot sales are light. 
Orders from retailers are unchanged from last week, but food services are taking in 
less loads. Supplies are plentiful for barrels and blocks and keeping processors 
busy. Due to U.S. competitive cheese prices in regard to the international market, 
sellers are expecting exports to increase in the near term. The DMN National Retail 
Report-Dairy for the week of June 30-July 06 shows the U.S. weighted average advertised 
retail price for an 8 ounce pack of natural shredded cheese is $2.43, up $.12 from last 
week. Packs average $2.68 in the Southwest and $2.32 in the Northwest. One year ago, the 
national price was $2.16. For 8 ounce blocks, the U.S. price is $2.61, up $.20 from last 
week. Blocks average $2.51 in the Southwest and $2.19 in the Northwest. One year ago, the 
national price was $2.23. In the West, wholesale prices were up $.0100 for process, but 
down $.0500 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are 
down $.0675. The CME Group June 2017 monthly average price for barrels, $1.3972, is down 
from the May 2017 monthly average of $1.4806, and down from the monthly average of a year 
ago, $1.5301. Blocks' June average price, $1.6022, is down from the $1.6264 May monthly 
average, but up from $1.5005 one year ago. In CME Group trading Wednesday, barrels closed 
at $1.3700, no change from a week ago and blocks closed at $1.5400, up $.0300.                                                    

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.4425-1.7000     
Cheddar 40# Block                            : 1.6425-2.0875     
Cheddar 10# Cuts                             : 1.8225-2.0425     
Monterey Jack 10#                            : 1.8325-1.9925     
Grade A Swiss Cuts 6 - 9#                    : 2.7100-3.1400     

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