MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  August 23, 2017 (REPORT 34)                        

WEST CHEESE                                                      

Western cheese production is active. Although parts of the region are seeing seasonal 
declines in milk production, available milk supplies often fill cheese vats first. 
Overall, cheese inventories have grown somewhat. However, solid domestic cheese demand 
and slightly improved export opportunities have allowed manufacturers to ship cheese and 
keep stocks in check. A few contacts suggest demand for fresh cheese barrels has 
increased, tightening supplies of young cheese barrels and narrowing the price spread 
between blocks and barrels in cash markets. The DMN National Retail Report-Dairy for the 
week of August 18-24 shows the U.S. weighted average advertised retail price for an 8 
ounce pack of natural shredded cheese is $2.28, up $.13 from last week. Packs average 
$2.35 in the Southwest and $2.14 in the Northwest. One year ago, the national price was 
$2.29. For 8 ounce blocks, the U.S. price is $2.37, up $.02 from last week. There were no 
reported sales prices for 8 ounce block cheese in either the Southwest or Northwest this 
week. One year ago, the national price was $2.12. In the West, wholesale prices were up 
$.1250 for process, and up $.0475 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 88,185 pounds (40 metric 
tons) of cheese. So far this year, the program has assisted member cooperatives who have 
contracts to sell 47.1 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 July 2017 were 
1.375 billion pounds, up 4 percent from June 2017 holdings, and up 8 percent from July 
2016. American stocks were 9 percent more, Swiss stocks were up 5 percent, and other 
natural stocks were up 6 percent compared to last year. Current stocks of total natural 
cheese and other natural cheese are at record high levels. In the Mountain Region, 
American cheese stocks were 11 percent higher than one year earlier, but unchanged from 
one month earlier. Pacific Region American cheese stocks were 16 percent more than one 
year earlier, and 6 percent more than the previous month. Also in the Pacific Region, 
other natural cheese stocks were 4 percent below a year ago, but 13 percent higher than a 
month ago. In CME Group trading Wednesday, barrels closed at $1.6550, down $.0150 from a 
week ago and blocks closed at $1.7000, down $.0350. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7625-2.0200     
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     


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