Cheese - West
USDA - Wed Mar 07, 3:41PM CST
MD_DA840

     Cheese - Western U.S.

     Report 10 - Released on March 07, 2018

     Western cheese production is active as more milk is going to the vats. According to some
     contacts, hard Italian cheese output increased a little more this week. However, its
     production is expected to stabilize in a few days. The cheese market undertone seems
     unsettled. Although some reports suggest solid domestic demand and lively cheese export
     opportunities, supplies are still more substantial compared to sales. Intense competition
     with the European Union in the international market is also not helping the USA. Sellers are
     looking for possible ways to clear cheese out of storages. With most processing plants
     currently working at full capacity, manufacturers are worried about how they will manage
     milk supplies and cheese inventories during the spring flush.

     The DMN National Retail Report-Dairy for the week of March 2 - 8 shows the U.S. weighted
     average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.20,
     down $.01 from last week. Packs average $2.65 in the Southwest and $2.20 in the Northwest.
     One year ago, the national price was $2.21. For 8 ounce blocks, the U.S. price is $2.27, up
     $.05 from last week. Blocks average $2.84 in the Southwest and $2.06 in the Northwest. One
     year ago, the national price was $2.15.

     In the West, wholesale prices were down $.0075 for process, but up $.0050 for cheddar
     block, cuts and Monterey Jack. Swiss cut wholesale prices are down $.1600 from last week.
     WHOLESALE SELLING PRICES: DELIVERED
     DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

     Cheddar 10 pound Cuts               1.8375-2.0575
     Cheddar 40 pound Block              1.6575-2.1025
     Monterey Jack 10 pounds             1.8475-2.0075
     Process American 5 pound Loaf       1.5500-1.8075
     Swiss 6-9 pound Cuts                2.7400-3.1700

     Information for the period March 5 - 9, 2018, issued weekly

     Secondary Sourced Information:

     The CME Group February 2018 monthly average price for barrels, $1.4096, is up from the
     January 2018 monthly average of $1.3345, but down from the monthly average of a year ago,
     $1.6230. Blocks´┐Ż February average price, $1.5157, is up from the $1.4938 January monthly
     average, but down from $1.6199 one year ago. In CME Group trading Wednesday, barrels closed
     at $1.5100, up $.0400 from a week ago and blocks closed at $1.5600, up $.0300.

     Dairy Products (NASS) reports January 2018 U.S. total cheese production, 1.08 billion
     pounds, is 1.0 percent below December 2017, but 3.4 percent above January 2017. In the
     West, total cheese production for January 2018 was 454.05 million pounds, 0.2 percent less
     than last month. For total cheese production and various types of cheese, January 2018 U.S.
     and West cheese production percent changes compared to January 2017 are as follows:

     January Production 2018 vs 2017      U.S.       West

     Total Cheese                        + 3.4       + 2.9
     American                            + 2.7       + 2.5
     Cheddar                             + 0.3       - 2.6
     Total Italian                       + 3.4       + 2.5
     Mozzarella                          + 3.1       + 2.2
     Swiss                               + 7.5         ...

     2018 U.S. Cheese and Curd Exports (USDA-FAS)

                      2018 Exports    % Change From
                      (Million Lb.)     1 Year Ago

     TOTAL, JANUARY      59.4            + 19
     1 Mexico            19.4            + 62
     2 South Korea        8.2            + 13
     3 Japan              5.8            + 40
     4 Australia          4.3            - 11
     5 China              2.7            +121

     2018 U.S. Cheese and Curd Imports (USDA-FAS)
     (Imports for Consumption)

                      2018 Imports    % Change From
                      (Million Lb.)     1 Year Ago

     TOTAL, JANUARY      30.8            -  2
      1 Italy             5.9            +  2
      2 France            3.6            -  9
      3 Canada            2.6            + 16
      4 Denmark           2.0            + 70
      5 Germany           1.8            +110

                                                2018 Imports      % Change From
                                                (Million Lb.)       1 Year Ago

     January Imports
       TOTAL Cheese and Curd (H.S. Code 0406)       30.8             -  2
       Cheese, Except Fresh (H.S. Code 040690)      27.4             -  2
       Fresh Cheese (H.S. Code 040610)               1.4             - 22
       Cheese, Processed (H.S. Code 040630)          0.8             +  3
       Cheese, Blue-Veined (H.S. Code 040640)        1.0             + 42

     Published by:
     Dairy Market News - Madison, WI
     Florence Kone-Gonzalez, (608)422-8594
     Email: Florence.KoneGonzalez@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home