MD_DA840

     Cheese - Western U.S.

     Report 38 - Released on September 19, 2018

     In the West, cheese production is steady to higher than expected due to readily available
     milk loads at some localities. Some cheese manufacturing facilities are working at full
     capacity to process all the milk available to them. Cheese inventories, although abundant,
     are not burdensome. Domestic cheese orders are solid. While some processors say that the
     current sales fit their expectations for this time of the year, others state that they
     exceed their expectations. Pizza makers are taking on more cheese since the reopening of
     schools. International cheese demand is generally good. In recent days, cheese prices have
     been declining. As the result, some market participants have put off their purchase plans
     and are reevaluating market conditions. In the West, wholesale prices were down $.1150 for
     process and down $.0500 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale
     prices are steady compared to last week.

     National Retail Report Dairy ± Cheese Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 9/14/2018
      to 9/20/2018
     Cheese 8 oz. Blocks
                                Weighted Average Price
     National            This Period    Last Week     Last Year
      Organic               $5.99         $5.99         n.a.
      Conventional          $2.28         $2.20        $2.09

     Regional (Conventional)Wtd. Ave.     Low           High
      NORTHWEST             $2.00         $1.67        $2.50
      SOUTHWEST             $2.23         $1.67        $3.00

     Cheese 8 oz. Shred
                               Weighted Average Price
     National            This Period    Last Week     Last Year
      Organic               $2.99         n.a.         $3.61
      Conventional          $2.30         $2.38        $2.17

     Regional (Conventional)Wtd. Ave.     Low           High
      NORTHWEST             $2.00         $1.67        $2.50
      SOUTHWEST             $2.17         $1.67        $3.00
     WHOLESALE SELLING PRICES: DELIVERED
     DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

     Cheddar 10 pound Cuts               1.9300-2.1500
     Cheddar 40 pound Block              1.7500-2.1925
     Monterey Jack 10 pounds             1.9400-2.1000
     Process American 5 pound Loaf       1.5500-1.8075
     Swiss 6-9 pound Cuts                2.7350-3.1650

     Information for the period September 17 - 21, 2018, issued weekly

     Secondary Sourced Information:

     This week, a cooperative export assistance program accepted requests for export assistance
     on contracts to sell 1.462 million pounds (663 metric tons) of cheese. So far this year, the
     program has assisted member cooperatives who have contracts to sell 51.101 million pounds
     of American-type cheeses in export markets. When combined with butter and whole milk powder,
     the program has assisted members with sales of 1.162 billion pounds of milk on a milkfat
     basis.

     In CME Group trading Wednesday, barrels closed at $1.3900, compared to the weekly average
     price of $1.4700 from last week. Blocks closed at $1.6150, compared to the weekly average
     price of $1.6300 from last week.
     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (6080422-8594
     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