MD_DA851

     Cheese Highlights

     Report 28 - Released on July 13, 2018

     Milk production is down this week as warmer weather takes ahold of cow comfort. However,
     milk supplies remain adequate for processing needs. Spot milk prices can be seen $0.50 over
     to $3 under Class III, the first premium seen since March. Cheese production is steady
     nationwide, with some producers in the Northeast running at a full production schedule.
     Export demand is slow, as countries such as Mexico looks to European markets to avoid
     increasing U.S. import tariffs. Trade issues impacts the West the most compared to any other
     region, causing cheesemakers to switch production from barrel to block to hedge against the
     loss of some international market shares. Domestic cheese demand is steady. Retail demand is
     stable with the grilling season here. The demand for Italian cheeses is steady to decreasing
     this time of year. Western sellers report concerns about finding new outlets to prevent
     further increasing inventories. Cheese inventories nationwide are steady to increasing. The
     cheese market undertone is generally unsettled.

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

     Secondary Sourced Information:

     The CME Group closing price for barrels is $1.4225, compared to last Friday¶s closing price
     of $1.2450. The closing price for blocks is $1.5600, compared to last Friday¶s closing
     price of $1.5425.

     Published by:
     Dairy Market News - Madison, WI
     AL YANG, 608-422-8598
     Email: Al.Yang@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