MD_DA840

     Cheese - Western U.S.

     Report 28 - Released on July 11, 2018

     Western cheese production is ongoing. However, export demand is somewhat slow. Some contacts
     report that Mexican buyers have started to look for alternative cheese providers in the
     European market as import tariffs on U.S. cheese have increased. To hedge against the loss
     of some international market shares, several western cheese manufacturers are adjusting
     their production schedules by switching from barrel to block production. Domestic sales are
     steady. The cheese market undertone is generally unsettled, and inventories are robust.
     Sellers are concerned as to finding additional sale outlets to prevent a further accrual of
     inventories. In the West, wholesale prices were up $.0525 for process and up $.0625 for
     cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices increased $.0275.

     National Retail Report Dairy ± Cheese Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 7/06/2018
      to 7/13/2018

                             Weighted Average Price
     Cheese 8 oz. Blocks
     National        This Period   Last Week  Last Year
       Organic          n.a.         n.a.        $3.54
       Conventional    $2.17        $2.08        $2.20

     Regional (Conventional)
                      Wtd. Ave.      Low          High
     NORTHWEST         $2.64        $1.66        $3.00
     SOUTHWEST         $2.14        $1.66        $3.00

                             Weighted Average Price
     Cheese 8 oz. Blocks
     National        This Period   Last Week  Last Year
       Organic          n.a.        $3.49        $3.40
       Conventional    $2.18        $2.12        $2.27

     Regional (Conventional)
                      Wtd. Ave.      Low          High
     NORTHWEST         $2.30        $1.99        $2.79
     WHOLESALE SELLING PRICES: DELIVERED
     DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

     Cheddar 10 pound Cuts               1.8575-2.0775
     Cheddar 40 pound Block              1.6775-2.1225
     Monterey Jack 10 pounds             1.8675-2.0275
     Process American 5 pound Loaf       1.4100-1.6675
     Swiss 6-9 pound Cuts                2.6525-3.0825

     Information for the period July 9 - 13, 2018, issued weekly

     Secondary Sourced Information:

     In CME Group trading Wednesday, barrels closed at $1.3500, up $.1050 from last Friday, and
     blocks closed at $1.5425, unchanged from last Friday.

     Dairy Products (NASS) reports May 2018 U.S. total cheese production, 1.09 billion pounds,
     is 1.7 percent higher than April 2018, and 1.4 percent above May 2017. Total 2018 U.S.
     cheese production, year to date through May is 5.36 billion pounds, 2.5 percent above
     January through May 2017. In the West, total cheese production for May 2018 was 455.4
     million pounds, 0.1 percent more than last month. For total cheese production and various
     types of cheese, May 2018 U.S. and West cheese production percent changes compared to May
     2017 are as follows:

     May Production 2018 vs 2017          U.S.        West

     Total Cheese                        + 1.4       + 1.7
     American                            - 0.1       + 0.6
     Cheddar                             - 3.0       - 4.2
     Total Italian                       + 1.1       + 0.6
     Mozzarella                          + 1.7       + 0.3
     Swiss                               + 9.0         ...
     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (608)422-8594
     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