MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  August 2, 2017 (REPORT 31)                          

WEST CHEESE                                                      

Many Western cheese producers report there is plenty of milk available for their cheese 
vats. Manufacturers suggest they are running their processing facilities at or near full 
capacity, making a lot of barrels and cheddar style cheese to find ways to handle the 
milk. Although some parts of the region are seeing a good balance between milk intakes 
and cheese production needs, a few contacts in the mountain states report some milk being 
discarded due to disruptions at several cheese plants, heavy milk supplies and the 
difficulty in moving milk to alternative processing sites. Cheese industry contacts are 
hopeful this is a short term problem and not something that lasts long. Domestic cheese 
demand is solid and market participants are still hopeful that international exports can 
effectively soak up the available cheese stocks.  Inventories are heavy. The DMN National 
Retail Report-Dairy for the week of July 28-Aug 3 shows the U.S. weighted average 
advertised retail price for an 8 ounce pack of natural shredded cheese is $2.09, down 
$.26 from last week. Packs average $1.84 in both the Southwest and the Northwest. One 
year ago, the national price was $2.22. For 8 ounce blocks, the U.S. price is $2.16, down 
$.08 from last week. Blocks average $2.16 in the Southwest and $1.85 in the Northwest. 
One year ago, the national price was $2.05. In the West, wholesale prices were up $.0125 
for process, and up $.0125 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 304,238 pounds (138 metric 
tons) of cheese. So far this year, the program has assisted member cooperatives who have 
contracts to sell 45.0 million pounds of cheese in export markets. In CME Group trading 
Wednesday, barrels closed at $1.5900, up $.1300 from a week ago and blocks closed at 
$1.7400, up $.0325. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5500-1.8075     
Cheddar 40# Block                            : 1.8425-2.2875     
Cheddar 10# Cuts                             : 2.0225-2.2425     
Monterey Jack 10#                            : 2.0325-2.1925     
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