MD_DA840 DA MD DA840 Cheese - West MADISON, WI. August 9, 2017 (REPORT 32) WEST CHEESE Cheese production in the West is ongoing as farm milk output is readily available for processing. The market undertone is slow. A few industry contacts report that the inventories for retail and commodity cheese are balanced. However, some manufacturers report long stocks. Although domestic sales seem to be strong, they are not enough to offset current production levels. Cheese is moving well within contracts, but spot sales are slower to develop. Export opportunities are currently low; however, there is hope that it will pick up in the near future. As the result of temporary issues at some cheese plants, other cheese factories in the Western region increased their milk intakes to help with clearing farm milk volumes. The DMN National Retail Report-Dairy for the week of August 4-10 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.19, up $.10 from last week. Packs average $2.46 in the Southwest and $2.05 in the Northwest. One year ago, the national price was $2.29. For 8 ounce blocks, the U.S. price is $2.27, up $.11 from last week. Blocks average $2.50 in both the Southwest and the Northwest. One year ago, the national price was $2.14. In the West, wholesale prices were up $.1050 for process, and up $.0250 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are up $.0400. Dairy Products (NASS) reports June 2017 U.S. total cheese production, 1.03 billion pounds, is 2.5 percent below May 2017. Total 2017 U.S. cheese production, year to date through June is 6.176 billion pounds, 2.7 percent above January through June 2016. In the West, total cheese production for June 2017 was 434.7 million pounds, 2.9 percent less than last month. For total cheese production and various types of cheese, June 2017 U.S. and West cheese production percent changes compared to June 2016 are as follows: U.S. West Total Cheese + 3.2 + 2.8 American + 3.0 - 0.9 Cheddar + 2.8 - 3.7 Total Italian + 3.1 + 4.4 Mozzarella + 3.1 + 5.2 Swiss ... ... The CME Group July 2017 monthly average price for barrels, $1.4396, is up from the June 2017 monthly average of $1.3972, but down from the monthly average of a year ago, $1.7363. Blocks' July average price, $1.6586, is up from the $1.6022 June monthly average, but down from $1.6613 one year ago. In CME Group trading Wednesday, barrels closed at $1.5925, up $.0025 from a week ago and blocks closed at $1.6800, down $.0600. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.6550-1.9125 Cheddar 40# Block : 1.8650-2.3100 Cheddar 10# Cuts : 2.0450-2.2650 Monterey Jack 10# : 2.0550-2.2150 Grade A Swiss Cuts 6 - 9# : 2.7500-3.1800 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago June 67.3 + 32 TOTAL, JAN - JUN 381.4 + 24 1 Mexico 117.1 + 16 2 South Korea 63.5 + 48 3 Japan 36.5 + 10 4 Australia 27.3 + 68 5 China 13.6 + 39 2017 U.S. Cheese and Curd Imports (USDA-FAS) - (Imports for Consumption) 2017 Imports % Change From (Million Lb.) Last Month June Imports TOTAL Cheese and Curd (H.S. Code 0406) 32.8 - 2 Cheese, Except Fresh (H.S. Code 040690) 27.8 - 5 Fresh Cheese (H.S. Code 040610) 3.1 + 6 Cheese, Processed (H.S. Code 040630) 1.1 + 21 Cheese, Blue-Veined (H.S. Code 040640) 0.9 + 60 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - JUN 193.3 - 12 1 Italy 36.3 + 4 2 France 21.7 - 4 3 Netherlands 14.5 + 7 4 New Zealand 14.3 - 43 5 Spain 12.8 ... 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