MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  July 19, 2017 (REPORT 29)                          

WEST CHEESE        

Cheese is being produced at full manufacturing capacity in most western cheese plants. 
Despite higher daytime temperatures, milk is readily available for cheese processing. 
Overall, cheese supplies are plentiful. However, contacts suggest that block cheese 
inventories are slightly tighter than the inventories for barrel cheese. Although prices 
are higher this week, some contacts believe they don't reflect current market conditions 
due to the abundance of cheese in the market. Other industry contacts report limited 
storage availabilities in some areas, resulting in discounted sale prices to keep cheese 
moving. Spot sales are active. Demand is steady. With current higher cheese prices in the 
EU, the international market is showing more interest for U.S. cheese. The DMN National 
Retail Report-Dairy for the week of July 14-20 shows the U.S. weighted average advertised 
retail price for an 8 ounce pack of natural shredded cheese is $2.19, down $.08 from last 
week. Packs average $2.09 in the Southwest and $1.92 in the Northwest. One year ago, the 
national price was $2.19. For 8 ounce blocks, the U.S. price is $2.14, down $.06 from 
last week. Blocks average $2.44 in the Southwest and $1.85 in the Northwest. One year 
ago, the national price was $2.19. In the West, wholesale prices were up $.0675 for 
process, and up $.0825 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 1.373 million pounds (853 metric 
tons) of cheese. So far this year, the program has assisted member cooperatives who have 
contracts to sell 44.312 million pounds of cheese in export markets. In CME Group trading 
Wednesday, barrels closed at $1.4850, up $.0475 from a week ago and blocks closed at 
$1.7100, up $.0800. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5150-1.7725     
Cheddar 40# Block                            : 1.7500-2.1950     
Cheddar 10# Cuts                             : 1.9300-2.1500     
Monterey Jack 10#                            : 1.9400-2.1000     
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