MD_DA840 Cheese - Western U.S. Report 23 - Released on June 13, 2018 Western cheese makers say demand has hit a bit of a lull. Cheese customers are making regular draws, but not asking for more right now. The unofficial start to summer passed last week and grilling season is upon the nation. However, terms are ending for the school year and food service demand is shifting. Buyers and manufacturers are adjusting to the new consumption patterns. In some cases, processors are planning to slow the cheese vats, despite the widespread availability of cheap milk. Manufacturers are using the slowdown as an opportune time to conduct maintenance and repairs. Inventories are healthy, but not burdensome. Industry contacts say cheese makers are making regular offers, but not at steeply discounted prices. Many feel market prices are well-supported. Contacts further say they hope export demand continues to grow, but some have lingering concerns about trade discussions, potential tariffs, currency rates, shipping and other trade issues. National Retail Report Dairy ± Cheese Summary Advertised Prices for Cheese at Major Retail Supermarket Outlets ending during the period of 06/01/2018 to 06/07/2018 Weighted Average Price This Period Last Week Last Year Cheese 8 oz. Blocks Conventional 2.39 2.13 2.26 Organic 4.82 3.99 3.68 Conventional Organic Wtd. Ave. Range Wtd. Ave. Range Regional Northeast 3.32 1.49-3.50 3.99 3.99 Southeast 2.65 2.00-2.99 na na Midwest 2.05 1.57-2.99 na na South Central 2.47 2.00-2.99 na na Southwest 2.23 1.88-3.00 5.99 5.99 Northwest 2.32 2.00-2.50 na na Alaska na na na na Hawaii 2.50 2.50 na na Weighted Average Price This Period Last Week Last Year Cheese 8 oz. Shred Conventional 2.34 2.14 2.28 Organic 3.99 na 3.04 Conventional Organic Wtd. Ave. Range Wtd. Ave. Range Regional Northeast 2.33 1.49-3.00 3.99 3.99 Southeast 2.39 2.00-2.50 na na Midwest 2.04 1.67-2.50 na na South Central 2.35 1.78-3.49 na na Southwest 2.64 1.88-3.49 na na Northwest 2.22 1.99-2.50 na na Alaska 3.50 3.50 na na Hawaii 2.50 2.50 na na In the West, wholesale prices were down $.0125 for process and down $.0200 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are up $.0925. WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) Cheddar 10 pound Cuts 1.9125-2.1325 Cheddar 40 pound Block 1.7325-2.1775 Monterey Jack 10 pounds 1.9225-2.0825 Process American 5 pound Loaf 1.6225-1.8800 Swiss 6-9 pound Cuts 2.6250-3.0550 Information for the period June 4 - 8, 2018, issued weekly Secondary Sourced Information: Dairy Products (NASS) reports April 2018 U.S. total cheese production, 1.1 billion pounds, is 3.7 percent less than March 2018, but 0.9 percent above April 2017. Total 2018 U.S. cheese production, year to date through March is 4.26 billion pounds, 2.6 percent above January through April 2017. In the West, total cheese production for April 2018 was 455.1 million pounds, 1.6 percent less than last month. For total cheese production and various types of cheese, April 2018 U.S. and West cheese production percent changes compared to April 2017 are as follows: April Production 2018 vs 2017 U.S. West Total Cheese + 0.9 + 2.3 American + 1.4 + 4.1 Cheddar - 3.5 - 6.1 Total Italian + 0.8 + 0.2 Mozzarella + 1.1 + 0.3 Swiss + 4.6 ... According to the California Department of Food and Agriculture, April 2018 cheese production was 210.8 million pounds, up 0.2 percent from a year ago. California year-to-date cheese production through April is 840.2 million pounds, up 1.2 percent from 2017 cheese production through April. The CME Group May 2018 monthly average price for barrels, $1.5870, is up from the April 2018 monthly average of $1.4721, and up from the monthly average of a year ago, $1.4806. Blocks¶ May average price, $1.6397, is up from the $1.6062 April monthly average, and up from $1.6264 one year ago. In CME Group trading Wednesday, barrels closed at $1.5050, down $.0525 from a week ago and blocks closed at $1.5800, down $.0275. 2018 U.S. Cheese and Curd Exports (USDA-FAS) 2018 Exports % Change From (Million Lb.) 1 Year Ago April 72.5 + 22 TOTAL, JAN - APR 268.5 + 14 1 Mexico 72.7 + 6 2 South Korea 42.9 + 13 3 Japan 28.2 + 34 4 Australia 19.4 - 5 5 China 13.2 + 65 2018 U.S. Cheese and Curd Imports (USDA-FAS) (Imports for Consumption) 2018 Imports % Change From (Million Lb.) 1 Year Ago April Imports TOTAL Cheese and Curd (H.S. Code 0406) 30.5 - 9 Cheese, Except Fresh (H.S. Code 040690) 25.8 - 12 Fresh Cheese (H.S. Code 040610) 2.0 - 9 Cheese, Processed (H.S. Code 040630) 1.8 + 83 Cheese, Blue-Veined (H.S. Code 040640) 0.7 + 8 2018 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN-APR 116.2 - 8 1 Italy 22.7 - 1 2 France 13.2 - 4 3 Netherlands 8.2 - 13 4 Spain 7.4 - 5 5 Denmark 7.3 + 62 Published by: Dairy Market News - Madison, WI MIKE BANDLI, (608)422-8592 Email: mike.bandli@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