MD_DA840

     Cheese - Western U.S.

     Report 37 - Released on September 11, 2019

     Western cheese makers say there is plenty of milk available for processing, and they are
     running plants near full capacity. Strong seasonal pizza demand is promoting the production
     of mozzarella. And the wide spread between block and barrel prices is encouraging block
     production. Some industry contacts are trying to make sense of the lift in cheese prices on
     the CME, especially for the 40-pound block price. They see demand as adequate to keep cheese
     stock piles from ballooning, but export demand has been stifled by the higher market prices
     within the United States compared to world market prices. The daily close for blocks touched
     the $2 mark for the first time since November 2014 this week. Contacts suggest supplies of
     block cheese that meet CME trading requirements are limited, giving a push to block prices.
     Western cheese contacts relay that demand has been strong for block cheese, with some
     suppliers heavily committed over the next few months. However, with languid consumer demand
     for processed cheese, contacts also suggest there is currently no shortage of barrels and
     640s. The concern is how well the market can regain a balance. Block and barrel prices may
     moderate somewhat, but the concern is that stronger milk prices and cheap feed may
     incentivize more milk production and, subsequently, more cheese production. A few contacts
     suspect that without the potential for new market opportunities, the U.S. may again have a
     lot of cheese that is hard to sell.


     National Retail Report Dairy ± Cheese Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 9/6/2019
     to 9/12/2019
     Cheese 8 oz. Blocks                Weighted Average Price
     National                 This Period      Last Week      Last Year
     Conventional                $2.10           $2.23          $2.20
     Organic                     $3.49            n.a.          $5.99

     Regional (Conventional)   Wtd. Ave.          Low            High
     Alaska                      $2.79           $2.79          $2.79
     Hawaii                      $2.78           $2.50          $2.98
     Northwest                   $1.99           $1.99          $1.99
     Southwest                   $2.16           $2.00          $2.50


     Cheese 8 oz. Shred                 Weighted Average Price
     National                 This Period      Last Week      Last Year
     Conventional                $2.31           $2.37          $2.38
     Organic                     $3.79            n.a.           n.a.

     Regional (Conventional)   Wtd. Ave.          Low            High
     Alaska                      $4.05           $2.79          $5.00
     Hawaii                      $2.78           $2.50          $2.98
     Northwest                   $2.23           $1.99          $2.99
     Southwest                   $2.49           $2.00          $3.00

     Regional (Organic)        Wtd. Ave.          Low            High
     Northwest                   $3.79           $3.79          $3.79


     Western Wholesale Price Adjustments
     In the West, wholesale prices were up $.0450 for process, and up $.0725 for cheddar block,
     cuts and Monterey Jack. Swiss cut wholesale prices are down $.0125 from the previous week.

     WHOLESALE SELLING PRICES: DELIVERED
     DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

     Cheddar 10 pound Cuts               2.3000-2.5000
     Cheddar 40 pound Block              2.0525-2.5425
     Monterey Jack 10 pounds             2.2875-2.5625
     Process American 5 pound Loaf       1.8400-2.0950
     Swiss 6-9 pound Cuts                2.8625-3.2925


     Information for the period September 9 - 13, 2019, issued weekly

     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