Cheese - West
USDA - Wed Nov 08, 3:24PM CST
MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  November 08, 2017 (REPORT 45)                      

WEST CHEESE                                                      

Western cheese makers report solid domestic demand and some export interest. Shoppers are 
taking regular shipments to meet Q4 holiday orders. Buyers are getting a jump on the 
season, but so far the purchases are void of any razzle-dazzle. Many manufacturers are 
hoping for a more robust holiday buying spree in the near future. With plentiful milk 
available, a number of cheese processors say they are running at or near full capacity. 
Stocks are heavier than normal, but some industry contacts suggest this may be indicative 
of an industry that has gotten used to carrying more inventory. The DMN National Retail 
Report-Dairy for the week of November 3-9 shows the U.S. weighted average advertised 
retail price for an 8 ounce pack of natural shredded cheese is $2.22, down $.06 from last 
week. Packs average $2.19 in the Southwest and $1.79 in the Northwest. One year ago, the 
national price was $2.19. For 8 ounce blocks, the U.S. price is $2.34, up $.14 from last 
week. Blocks average $2.81 in the Southwest and $1.25 in the Northwest. One year ago, the 
national price was $2.12. In the West, wholesale prices were up $.0275 for process, and 
up $.0250 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are up 
$.1250 from last week. Dairy Products (NASS) reports September 2017 U.S. total cheese 
production, 1.01 billion pounds, is 1.4 percent below August 2017. Total 2017 U.S. cheese 
production, year to date through August is 9.253 billion pounds, 2.6 percent above 
January through September 2016. In the West, total cheese production for September 2017 
was 414.9 million pounds, 1.7 percent less than last month. For total cheese production 
and various types of cheese, September 2017 U.S. and West cheese production percent 
changes compared to September 2016 are as follows:

September Production 2017 vs 2016   U.S.       West
Total Cheese                      + 2.7       - 1.2
American                          + 4.2       - 1.3
Cheddar                           + 4.5       - 0.4
Total Italian                     + 1.4       + 0.1
Mozzarella                        + 0.2       - 0.4
Swiss                             + 3.3         ...

According to the California Department of Food and Agriculture, September 2017 cheese 
production was 194.0 million pounds, down 4.5 percent from a year ago. California year-
to-date cheese production through September is 1.873 billion pounds, down 0.1 percent 
from 2016 cheese production through September. The CME Group October 2017 monthly average 
price for barrels, $1.6970, is up from the September 2017 monthly average of $1.5691, and 
up from the monthly average of a year ago, $1.5295. Blocks' October average price, 
$1.7305, is up from the $1.6370 September monthly average, and up from $1.6035 one year 
ago. In CME Group trading Wednesday, barrels closed at $1.7000, down $.0400 from a week 
ago and blocks closed at $1.6025, down $.1575. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.8050-2.0625     
Cheddar 40# Block                            : 1.8700-2.3150     
Cheddar 10# Cuts                             : 2.0500-2.2700     
Monterey Jack 10#                            : 2.0600-2.2200     
Grade A Swiss Cuts 6 - 9#                    : 2.8650-3.2950     


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

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

September            59.2            + 22

TOTAL, JAN - SEP    567.6            + 24
 1 Mexico           165.5            + 15
 2 South Korea       89.6            + 35
 3 Japan             57.0            + 28
 4 Australia         47.7            + 93
 5 China             21.3            + 34


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

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

September Imports
  TOTAL Cheese and Curd (H.S. Code 0406)       28.5             - 15
  Cheese, Except Fresh (H.S. Code 040690)      24.5             - 16
  Fresh Cheese (H.S. Code 040610)               2.3             +  2
  Cheese, Processed (H.S. Code 040630)          0.7             - 19
  Cheese, Blue-Veined (H.S. Code 040640)        0.8             -  8

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

TOTAL, JAN - SEP                              286.0             - 12
 1 Italy                                       55.1             +  7
 2 France                                      32.7             -  8
 3 Netherlands                                 22.0             -  3
 4 Spain                                       19.5             +  5
 5 Germany                                     18.7             + 25


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