MD_DA840 Cheese - Western U.S. Report 9 - Released on March 03, 2021 With abundant milk, western cheesemakers say there is plenty of spot milk to buy if needed. Cheese production is active. Industry contacts suggest inventories are building, but much of the cheese is already sold. Congestion at the ports has delayed some shipments, causing product to back up into manufacturers’ warehouses. Contacts report international buyer interest is present due to the favorable U.S. cash market cheese prices compared to prices overseas. International buyers often want to forward buy several months out. However, the gap between cash prices and futures prices makes manufacturers hesitant to do this. Cheese processors say forecasting has become more difficult over the last year. While cheese is moving well through contracts, domestic buyers are reticent. Retail sales are still ahead of last year, and although cheese sellers have seen a small uptick in food service interest, overall demand is shaky. WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) Cheddar 10 pound Cuts 1.9300-2.1300 Cheddar 40 pound Block 1.6825-2.1725 Monterey Jack 10 pounds 1.9175-2.1925 Process American 5 pound Loaf 1.5125-1.7675 Swiss 6-9 pound Cuts 3.8725-4.3025 Information for the period March 1 - 5, 2021, issued weekly Secondary Sourced Information: WESTERN WHOLESALE PRICE ADJUSTMENTS In the West, wholesale prices are down $.0325 for process, but up $.0675 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are unchanged from the previous week. CME GROUP MONTHLY AVERAGES The CME Group February 2021 monthly average price for barrels, $1.4442, is down from the January 2021 monthly average price of $1.5141, and down from the monthly average of a year ago, $1.5470. The February average price for blocks, $1.5821, is down from the January 2021 monthly average of $1.7470, and down from the monthly average of a year ago, $1.8343. CME CLOSE In CME Group trading Wednesday, barrels closed at $1.4200, compared to the weekly average price of $1.4090 from last week. Blocks closed at $1.6500, compared to the weekly average price of $1.6015 from last week. Published by: Dairy Market News - Madison, WI MIKE BANDLI, (608)422-8592 Email: mike.bandli@usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: https://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News): https://mymarketnews.ams.usda.gov