MD_DA840 DA MD DA840 Cheese - West MADISON, WI. October 11, 2017 (REPORT 41) WEST CHEESE Western cheese makers report plenty of milk is heading into cheese vats. Production schedules are running close to full, with an occasional shut down for routine maintenance. Industry contacts suggest production is in good balance with current demand. Buyers are providing support to block prices and there is a tendentious view that market prices may be further supported by increasing seasonal demand. Perspectives are mixed on cheese inventories. While most agree cheese stocks for both blocks and barrels have been drawn down somewhat, some contacts say there is a lot of cheese in storage and others report cheese has become less available. In some cases, manufacturers are offering discounted or older cheddar blocks to help clear inventories and fulfill purchaser demands. The DMN National Retail Report-Dairy for the week of October 6-12 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.47, up $.19 from last week. Packs average $2.61 in the Southwest and $2.76 in the Northwest. One year ago, the national price was $2.25. For 8 ounce blocks, the U.S. price is $2.52, up $.27 from last week. Blocks average $2.84 in the Southwest and $2.76 in the Northwest. One year ago, the national price was $2.26. In the West, wholesale prices were up $.0175 for process, and up $.0300 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are down $.1100 from last week. This week, a cooperative export assistance program accepted requests for export assistance on contracts to sell 740,753 pounds (336 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 55.558 million pounds of cheese in export markets. Dairy Products (NASS) reports August 2017 U.S. total cheese production, 1.03 billion pounds, is 0.7 percent below July 2017. Total 2017 U.S. cheese production, year to date through August is 8.239 billion pounds, 2.5 percent above January through August 2016. In the West, total cheese production for August 2017 was 422.2 million pounds, 2.6 percent less than last month. For total cheese production and various types of cheese, August 2017 U.S. and West cheese production percent changes compared to August 2016 are as follows: August Production 2017 vs 2016 U.S. West Total Cheese + 2.3 + 0.1 American + 1.5 - 3.8 Cheddar + 1.2 - 5.9 Total Italian + 2.5 + 1.6 Mozzarella + 2.3 + 2.4 Swiss + 0.5 ... In CME Group trading Wednesday, barrels closed at $1.7150, down $.0150 from a week ago and blocks closed at $1.7575, up $.0075. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.8025-2.0600 Cheddar 40# Block : 1.8675-2.3125 Cheddar 10# Cuts : 2.0475-2.2675 Monterey Jack 10# : 2.0575-2.2175 Grade A Swiss Cuts 6 - 9# : 2.7400-3.1700 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago August 67.0 + 34 TOTAL, JAN - AUG 508.4 + 24 1 Mexico 150.9 + 16 2 South Korea 82.2 + 40 3 Japan 50.6 + 22 4 Australia 40.7 + 85 5 China 18.6 + 31 2017 U.S. Cheese and Curd Imports (USDA-FAS) (Imports for Consumption) 2017 Imports % Change From (Million Lb.) 1 Year Ago August Imports TOTAL Cheese and Curd (H.S. Code 0406) 33.4 - 6 Cheese, Except Fresh (H.S. Code 040690) 29.1 - 4 Fresh Cheese (H.S. Code 040610) 2.8 - 7 Cheese, Processed (H.S. Code 040630) 0.8 - 35 Cheese, Blue-Veined (H.S. Code 040640) 0.7 - 15 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - AUG 257.6 - 11 1 Italy 50.5 + 9 2 France 28.8 - 10 3 Netherlands 19.5 + 2 4 Spain 17.5 + 3 5 Germany 16.9 + 28 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