MD_DA840

     Cheese - Western U.S.

     Report 3 - Released on January 15, 2020

     Western cheesemakers report cheese is moving well through current contracts, and customers
     are consistently picking up orders. Demand is steady. There is plenty of milk to keep plants
     running near full capacity. In some cases, manufacturers can find discounted milk to fill up
     processing schedules. While inventories are not necessarily burdensome, some industry
     contacts say they are heavy enough. With adequate cheese stocks on hand and abundant milk
     supplies, contacts think a few manufacturers have shifted production to barrels from blocks.
     As a result, the barrel cash market price has been under pressure the last month. Since the
     first week in December, the CME barrel weekly average price has decreased about 30 percent,
     while the block price has decreased about 5 percent.

     NATIONAL RETAIL REPORT DAIRY – CHEESE SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     01/10/2020 to 01/16/2020
     Cheese 8 oz. Blocks               Weighted Average Price
     National                 This Period     Last Week      Last Year
     Conventional                $2.29          $2.39          $1.91
     Organic                      n.a.          $3.99           n.a.

     Regional (Conventional)   Wtd. Ave.         Low            High
     Alaska                      $1.99          $1.99          $1.99
     Hawaii                      $2.99          $2.99          $2.99
     Northwest                   $1.67          $1.67          $1.67
     Southwest                   $2.19          $1.99          $2.99

     Cheese 8 oz. Shred                 Weighted Average Price
     National                 This Period      Last Week      Last Year
     Conventional                $2.33          $2.41          $2.32
     Organic                     $3.59          $3.99          $2.49

     Regional (Conventional)    Wtd. Ave.        Low            High
     Alaska                      $1.99          $1.99          $1.99
     Hawaii                      $2.99          $2.99          $2.99
     Northwest                   $2.20          $1.67          $2.99
     Southwest                   $2.38          $1.67          $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 down $.0700 for process, and down $.0325 for cheddar
     block, cuts and Monterey Jack. Swiss cut wholesale prices are unchanged from the previous
     week.
     WHOLESALE SELLING PRICES: DELIVERED
     DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

     Cheddar 10 pound Cuts               2.1900-2.3900
     Cheddar 40 pound Block              1.9425-2.4325
     Monterey Jack 10 pounds             2.1775-2.4525
     Process American 5 pound Loaf       1.6850-1.9400
     Swiss 6-9 pound Cuts                3.1350-3.5650

     Information for the period January 13 - 17, 2020, issued weekly

     Secondary Sourced Information:

     CME Close
     In CME Group trading Wednesday, barrels closed at $1.4850, compared to the weekly average
     price of $1.5810 from last week. Blocks closed at $1.8875, compared to the weekly average
     price of $1.8595 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