MD_DA840 DA MD DA840 Cheese - West MADISON, WI. July 12, 2017 (REPORT 28) WEST CHEESE Western cheese makers report active cheese manufacturing. Although milk production is slowing to some extent, there is still plenty of milk available for processing. The lighter intakes have had a negligible effect on cheese prices and inventories. Industry contacts say cheese stocks are still long, but demand is starting to catch up to production and, perhaps, starting to draw on cheese stocks. Domestic demand is stable and a number of manufacturers say cheese is moving well through current contracts. Cheese marketers are hopeful that lower cheese prices in the U.S., compared to world markets, may boost export opportunities in the near future. The DMN National Retail Report-Dairy for the week of July 7-13 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.27, down $.16 from last week. Packs average $2.41 in the Southwest and $3.00 in the Northwest. One year ago, the national price was $2.30. For 8 ounce blocks, the U.S. price is $2.20, down $.41 from last week. Blocks average $2.32 in the Southwest. There were no reported sale prices in the Northwest. One year ago, the national price was $2.33. In the West, wholesale prices were up $.0050 for process, and up $.0250 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 1.490 million pounds (853 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 43.324 million pounds of cheese in export markets. Dairy Products (NASS) reports May 2017 U.S. total cheese production, 1.051 billion pounds, is 0.8 percent above April 2017. Total 2017 U.S. cheese production, year to date through May, is 5.143 billion pounds, 2.5 percent above January through May 2016. In the West, total cheese production for May 2017 was 447.6 million pounds, 0.6 percent more than last month. For total cheese production and various types of cheese, May 2017 U.S. and West cheese production percent changes compared to May 2016 are as follows: U.S. West Total Cheese + 4.0 + 3.2 American + 5.7 + 4.9 Cheddar + 6.9 + 5.4 Total Italian + 1.2 + 0.9 Mozzarella + 0.6 + 1.4 Swiss - 1.3 ... In CME Group trading Wednesday, barrels closed at $1.4375, up $.0675 from a week ago and blocks closed at $1.6300, up $.0900. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.4475-1.7050 Cheddar 40# Block : 1.6675-2.1125 Cheddar 10# Cuts : 1.8475-2.0675 Monterey Jack 10# : 1.8575-2.0175 Grade A Swiss Cuts 6 - 9# : 2.7100-3.1400 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago May 78.1 + 48 TOTAL, JAN - MAY 314.0 + 22 1 Mexico 98.3 + 15 2 South Korea 49.4 + 37 3 Japan 28.5 + 5 4 Australia 25.0 + 101 5 Canada 10.9 + 4 2017 U.S. Cheese and Curd Imports (USDA-FAS) (Imports for Consumption) 2017 Imports % Change From (Million Lb.) Last Month May Imports TOTAL Cheese and Curd (H.S. Code 0406) 33.6 ... Cheese, Except Fresh (H.S. Code 040690) 29.3 ... Fresh Cheese (H.S. Code 040610) 2.9 + 27 Cheese, Processed (H.S. Code 040630) 0.9 - 10 Cheese, Blue-Veined (H.S. Code 040640) 0.6 - 17 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - MAY 160.4 - 14 1 Italy 29.0 - 2 2 France 17.5 - 5 3 New Zealand 14.1 - 38 4 Netherlands 12.0 + 15 5 Germany 11.0 + 42 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