Cheese - West
USDA - Wed Dec 06, 2:59PM CST
MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  December 06, 2017 (REPORT 49)                      

WEST CHEESE                                                      

Western cheesemakers report a lot of milk is available for processing. Cheese production 
is active. However, cheesemakers also express, with a certain amount of candor, their 
hesitancy to take on more milk. While lower prices are generating some new interest in 
international markets, cheesemakers are watching the cheese and Class III milk futures 
closely for any sign that could encapsulate the belief that cheese prices may weaken 
further. There is an underlying concern that lower cheese prices and lagging milk prices 
could make it difficult for manufacturers to recoup the costs of the milk. Furthermore, 
demand is solid now as retailers seek out cheese blocks for holiday orders, but those 
will soon diminish and there is some question what demand will look like after end of the 
year festivities. The DMN National Retail Report-Dairy for the week of December 1-7 shows 
the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.16, down $.01 from last week. Packs average $2.16 in the Southwest and $1.99 
in the Northwest. One year ago, the national price was $2.32. For 8 ounce blocks, the 
U.S. price is $2.32, up $.16 from last week. Blocks average $1.99 in both the Southwest 
and the Northwest. One year ago, the national price was $2.25. In the West, wholesale 
prices were down $.1275 for process, and down $.0200 for cheddar block, cuts, and 
Monterey Jack. Swiss cut wholesale prices are down $.0225 from last week. Dairy Products 
(NASS) reports October 2017 U.S. total cheese production, 1.07 billion pounds, is 5.2 
percent above September 2017. Total 2017 U.S. cheese production, year to date through 
September is 10.32 billion pounds, 2.5 percent above January through October 2016. In the 
West, total cheese production for October 2017 was 446.4 million pounds, 7.6 percent more 
than last month. For total cheese production and various types of cheese, October 2017 
U.S. and West cheese production percent changes compared to October 2016 are as follows:

October Production 2017 vs 2016     U.S.       West
Total Cheese                      + 1.7       + 1.6
American                          + 4.0       + 3.4
Cheddar                           + 4.1       + 0.1
Total Italian                     + 1.8       - 1.0
Mozzarella                        + 0.9       - 0.7
Swiss                             + 1.9         ...

The CME Group November 2017 monthly average price for barrels, $1.6656, is down from the 
October 2017 monthly average of $1.6970, and down from the monthly average of a year ago, 
$1.7424. Blocks' November average price, $1.6590, is down from the $1.7305 October 
monthly average, and down from $1.8775 one year ago. In CME Group trading Wednesday, 
barrels closed at $1.5700, up $.0600 from a week ago and blocks closed at $1.4700, down 
$.1300. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6175-1.8750     
Cheddar 40# Block                            : 1.7100-2.1550     
Cheddar 10# Cuts                             : 1.8900-2.1100     
Monterey Jack 10#                            : 1.9000-2.0600     
Grade A Swiss Cuts 6 - 9#                    : 2.8425-3.2725     



2017 U.S. Cheese and Curd Exports (USDA-FAS)

                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

October              59.5            +  9

TOTAL, JAN - OCT    627.2            + 22
 1 Mexico           177.3            + 10
 2 South Korea       99.7            + 33
 3 Japan             62.7            + 28
 4 Australia         52.6            + 91
 5 China             25.8            + 41


2017 U.S. Cheese and Curd Imports (USDA-FAS)
(Imports for Consumption)

                                           2017 Imports      % Change From
                                           (Million Lb.)       1 Year Ago

October Imports
  TOTAL Cheese and Curd (H.S. Code 0406)       41.1              ...
  Cheese, Except Fresh (H.S. Code 040690)      35.5             -  2
  Fresh Cheese (H.S. Code 040610)               2.5             + 15
  Cheese, Processed (H.S. Code 040630)          1.7             + 47
  Cheese, Blue-Veined (H.S. Code 040640)        1.2             -  2

                                           2017 Imports      % Change From
                                           (Million Lb.)       1 Year Ago

TOTAL, JAN - OCT                              327.1             - 10
 1 Italy                                       63.9             +  8
 2 France                                      38.7             -  5
 3 Netherlands                                 25.5             -  3
 4 Spain                                       21.4             +  6
 5 Germany                                     20.7             + 23


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