MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  September 27, 2017 (REPORT 39)                     

WEST CHEESE                                                      

Western cheese makers report modest cheese prices and favorable exchange rates 
are helping develop some export opportunities. Domestic demand has remained 
solid, especially as buyers look for available cheese blocks ahead of the holiday 
buying season, and schools and food service pull more cheese. Cheese inventories 
are generally long, but many processors have come to understand this as a reality 
of the times. Manufacturers are hopeful the steady call for cheese will continue 
and help keep stocks in check. Production is solid. The DMN National Retail 
Report-Dairy for the week of September 22-28 shows the U.S. weighted average 
advertised retail price for an 8 ounce pack of natural shredded cheese is $2.19, 
up $.02 from last week. Packs average $2.33 in the Southwest and $1.25 in the 
Northwest. One year ago, the national price was $2.16. For 8 ounce blocks, the 
U.S. price is $2.11, up $.02 from last week. Blocks average $1.99 in the 
Southwest and 1.25 in the Northwest. One year ago, the national price was 2.18. 
In the West, wholesale prices were up $.0025 for process, but down $.0250 for 
cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are unchanged 
from last week. This week, a cooperative export assistance program accepted 
requests for export assistance on contracts to sell 1.296 million pounds (588 
metric tons) of cheese. So far this year, the program has assisted member 
cooperatives who have contracts to sell 55.1 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 August 2017 were 1.333 billion pounds, down 3 percent from 
July 2017 holdings, but up 7 percent from August 2016. American stocks were 8 
percent higher, Swiss stocks were up 3 percent, and other natural stocks were up 
7 percent compared to last year. In the Mountain Region, American cheese stocks 
were 6 percent higher than one year earlier, but down 6 percent from one month 
earlier. Pacific Region American cheese stocks were 31 percent more than one year 
earlier, and 5 percent more than the previous month. Also in the Pacific Region, 
other natural cheese stocks were 1 percent above a year ago, but 2 percent lower 
than a month ago. In CME Group trading Wednesday, barrels closed at $1.7300, up 
$.2175 from a week ago and blocks closed at $1.7325, up $.1350. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5975-1.8550     
Cheddar 40# Block                            : 1.7225-2.1675     
Cheddar 10# Cuts                             : 1.9025-2.1225     
Monterey Jack 10#                            : 1.9125-2.0725     
Grade A Swiss Cuts 6 - 9#                    : 2.8500-3.2800     

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