MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  July 26, 2017 (REPORT 30)                          

WEST CHEESE                                                      

Western cheese makers say production is steady and cheese is generally moving well 
through regular agreements. Domestic demand outside of current contracts is not 
spectacular. Buyers are not seeking extra loads of cheese, and they are content to wait 
until consumer demand picks up with the start of football seasons and school start-ups. 
Milk supplies are adequate to plentiful for most processing needs. Industry contacts 
report there were a few disruptions at several western cheese plants this week. However, 
those interruptions to processing were minor and only resulted in a few loads of milk 
being diverted within the region. Inventories, although generally long, are stable. The 
DMN National Retail Report-Dairy for the week of July 21-27 shows the U.S. weighted 
average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.35, 
up $.16 from last week. Packs average $2.24 in the Southwest and $2.50 in the Northwest. 
One year ago, the national price was $2.26. For 8 ounce blocks, the U.S. price is $2.24, 
up $.10 from last week. Blocks average $2.13 in the Southwest and $2.25 in the Northwest. 
One year ago, the national price was $2.13. In the West, wholesale prices were up $.0225 
for process, and up $.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 1.4 million pounds (640 
metric tons) of cheese. So far this year, the program has assisted member cooperatives 
who have contracts to sell 45.7 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 June 
2017 were 1.317 billion pounds, down 1 percent from May 2017 holdings, but up 5 percent 
from June 2016. American stocks were 7 percent more, Swiss stocks were up 4 percent, and 
other natural stocks were up 3 percent compared to last year. In the Mountain Region, 
American cheese stocks were 15 percent higher than one year earlier, but down 3 percent 
from one month earlier. Pacific Region American cheese stocks were 9 percent more than 
one year earlier, but 1 percent less than the previous month. Also in the Pacific Region, 
other natural cheese stocks were 14 percent below a year ago, but 1 percent higher than a 
month ago. According to the California Department of Food and Agriculture, June 2017 
cheese production was 207.2 million pounds, down 0.2 percent from a year ago. California 
year-to-date cheese production through June is 1.257 billion pounds, up 0.4 percent from 
2016 cheese production through June. In CME Group trading Wednesday, barrels closed at 
$1.4600, down $.0250 from a week ago and blocks closed at $1.7075, down $.0025. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5375-1.7950     
Cheddar 40# Block                            : 1.8300-2.2750     
Cheddar 10# Cuts                             : 2.0100-2.2300     
Monterey Jack 10#                            : 2.0200-2.1800     
Grade A Swiss Cuts 6 - 9#                    : 2.7100-3.1400     

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