Cheese - West
USDA - Wed Feb 06, 3:27PM CST
MD_DA840

     Cheese - Western U.S.

     Report 6 - Released on February 06, 2019

     Western cheese inventories, like most of the country, remain long. Industry contacts say
     domestic retail and food service demand is relatively steady. While buyer interest has
     picked up due to lower prices, exports have yet to take off. Market participants hope the
     lower prices will generate buyer activity and draw down cheese stocks. A few cheese makers
     suggest their inventories are in balance. Many manufacturers are running full schedules at
     their cheese facilities, but some contacts suggest a few processors are starting to ease
     back on cheese production and diverting milk intakes toward Class IV uses.

     National Retail Report Dairy � Cheese Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 2/01/2019
      to 2/07/2019
     Cheese 8 oz. Blocks        Weighted Average Price
     National                 This Period    Last Week     Last Year
     Organic                   $3.99           n.a.          n.a.
     Conventional              $2.05          $2.28         $2.10

     Regional (Conventional)  Wtd. Ave.      Low           High
      Alaska                    n.a.           n.a.          n.a.
      Hawaii                    n.a.           n.a.          n.a.
      Northwest                $2.00          $2.00         $2.00
      Southwest                $2.60          $1.49         $3.29

     Cheese 8 oz. Shred         Weighted Average Price
     National                 This Period    Last Week     Last Year
      Organic                  $3.99          $3.49         $4.15
      Conventional             $2.11          $2.23         $2.18

     Regional (Conventional)  Wtd. Ave.      Low           High
      Alaska                   $4.99          $4.99         $4.99
      Hawaii                    n.a.           n.a.          n.a.
      Northwest                $2.64          $1.99         $3.00
      Southwest                $2.20          $0.99         $3.00


     Western Wholesale Price Adjustments
     In the West, wholesale prices were up $.1050 for process, and up $.0775 for cheddar block,
     cuts and Monterey Jack. Swiss cut wholesale prices are down $.1200 from the previous week.
     WHOLESALE SELLING PRICES: DELIVERED
     DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

     Cheddar 10 pound Cuts               1.7625-1.9825
     Cheddar 40 pound Block              1.5825-2.0250
     Monterey Jack 10 pounds             1.7725-1.9325
     Process American 5 pound Loaf       1.3525-1.6075
     Swiss 6-9 pound Cuts                2.6525-3.0825


     Information for the period February 4 - 8, 2019, issued weekly

     Secondary Sourced Information:

     Dairy Products (NASS) � Cheese Summary
     Released February 4, 2019, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Cheese Production � United States: November 2017 and November 2018

                      Monthly Production (1000 pounds)     Percent Change from
     Total Cheese 1        Nov.        Oct.        Nov.         Nov.      Oct.
      Region              2017        2018        2018         2017      2018
     United States     1,070,668   1,129,891   1,081,639        1.0      -4.3

       Atlantic          140,049     143,994     135,467       -3.3      -5.9
       Central           492,554     509,876     485,286       -1.5      -4.8
       West              438,065     476,021     460,886        5.2      -3.2

                      Monthly Production (1000 pounds)      Percent Change from
     American Cheese 2     Nov.        Oct.        Nov.         Nov.      Oct.
      Region              2017        2018        2018         2017      2018
     United States       413,714     438,187     422,799        2.2      -3.5

       Atlantic           27,136      27,594      27,794        2.4       0.7
       Central           211,721     212,171     207,687       -1.9      -2.1
       West              174,857     198,422     187,318        7.1      -5.6

                      Monthly Production (1000 pounds)      Percent Change from
     Italian Cheese        Nov.        Oct.        Nov.         Nov.      Oct.
      Region              2017        2018        2018         2017      2018
     United States       456,821     474,764     464,305        1.6      -2.2

       Atlantic           60,493      60,026      60,559        0.1       0.9
       Central           184,737     194,789     182,642       -1.1      -6.2
       West              211,591     219,949     221,104        4.5       0.5

     Cheese Production � Cumulative Production January - November
                      Cumulative Production   Percent Change
                            (1000 pounds)         from
     Cheese Type          2017        2018        2017
     Total Cheese 1   11,553,601  11,838,623       2.5
     American 2        4,628,017   4,736,559       2.3
     Italian           4,914,109   5,053,812       2.8
     1/ Excludes cottage cheese.
     2/ Includes cheddar, colby, washed curd, stirred curd, Monterey and jack.


     CME Group Monthly Averages
     The CME Group January 2019 monthly average price for barrels, $1.2379, is down from the
     December 2018 monthly average of $1.2829, and down from the monthly average of a year ago,
     $1.3345. The January average price for blocks, $1.4087, is up from the $1.3764 December
     monthly average, but down from $1.4938 one year ago.


     CME Close
     In CME Group trading Wednesday, barrels closed at $1.2925, compared to the weekly average
     price of $1.2755 from last week. Blocks closed at $1.4575, compared to the weekly average
     price of $1.4610 from last week.


     U.S. Cheese and Curd Exports (USDA-FAS) � November, 2018
                      2018 Exports      % Change From
                      (Million Lb.)       1 Year Ago

     November             58.4            - 10

     TOTAL, JAN - NOV    704.8            +  2
      1 Mexico           195.0             ...
      2 South Korea      115.0            +  7
      3 Japan             68.2            +  1
      4 Australia         50.0            - 16
      5 China             25.6            - 10

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

                                                2018 Imports      % Change From
                                                (Million Lb.)       1 Year Ago
     November Imports
       TOTAL Cheese and Curd (H.S. Code 0406)       37.0             -  8
       Cheese, Except Fresh (H.S. Code 040690)      32.7             -  9
       Fresh Cheese (H.S. Code 040610)               1.8             - 10
       Cheese, Processed (H.S. Code 040630)          1.5             + 31
       Cheese, Blue-Veined (H.S. Code 040640)        0.8             - 19

                                                2018 Imports      % Change From
                                                (Million Lb.)       1 Year Ago
     TOTAL, JAN - NOV                              352.6             -  4
      1 Italy                                       64.3             - 12
      2 France                                      48.0             +  9
      3 Netherlands                                 28.3             -  2
      4 Spain                                       23.4              ...
      5 Switzerland                                 19.0             + 14
     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@ams.usda.gov


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