MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  October 4, 2017 (REPORT 40)                     

WEST CHEESE  

The western cheese market is relatively strong as domestic demand remains solid. 
Export sales are also stronger as the result of favorable cheese prices and 
exchange rates. Some industry contacts report that they don't expect prices to 
increase much because many people have already bought the stocks they need. 
Others expect prices to go down and are starting to reduce their purchases. 
Cheese production is active within the West as milk continues to be available for 
processing. In general, supplies are plentiful and outweigh current needs. 
However, inventories for young cheddar seem a little tight. The DMN National 
Retail Report-Dairy for the week of September 29-October 5 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.28, up $.09 from last week. Packs average $2.42 in the Southwest and 
$2.38 in the Northwest. One year ago, the national price was $2.31. For 8 ounce 
blocks, the U.S. price is $2.25, up $.14 from last week. Blocks average $2.38 in 
the Southwest and $1.99 in the Northwest. One year ago, the national price was 
$2.27. In the West, wholesale prices were up $.1875 for process, and up $.1150 
for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are 
unchanged from last week. According to the California Department of Food and 
Agriculture, August 2017 cheese production was 208.7 million pounds, up 1.5 
percent from a year ago. California year-to-date cheese production through August 
is 1.679 billion pounds, up 0.4 percent from 2016 cheese production through 
August. The CME Group September 2017 monthly average price for barrels, $1.5691, 
is down from the August 2017 monthly average of $1.5993, but up from the monthly 
average of a year ago, $1.5415. Blocks' September average price, $1.6370, is down 
from the $1.6852 August monthly average, but up from $1.6224 one year ago. In CME 
Group trading Wednesday, barrels closed at $1.7300, no change from a week ago and 
blocks closed at $1.7500, up $.0175.                                    
        
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7850-2.0425     
Cheddar 40# Block                            : 1.8375-2.2825     
Cheddar 10# Cuts                             : 2.0175-2.2375     
Monterey Jack 10#                            : 2.0275-2.1875     
Grade A Swiss Cuts 6 - 9#                    : 2.8500-3.2800     

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