MD_DA840 Cheese - Western U.S. Report 2 - Released on January 13, 2021 While western cheese makers contend with plenty of milk, they are trying to determine the best course of action. The recent announcement for more government food box purchases has propelled cheese prices upwards in some cash markets and prompted a few manufacturers to ramp up their production processes. However, industry contacts suggest there is some hesitancy to push production too far. Cheese inventories are readily available, and some market participants have set aside cheese stocks with the anticipation of filling part of the government allocation. Market demand outside the program purchases is sluggish. Retail sales are softer following the winter holiday season. Food service sales remain weak. Pizza sales and short order food service sales are clearing decent volumes of cheese but cannot overcome the decrease in other sectors. Without a bit more reliable demand, cheese manufacturers are cautious to extend production and expose themselves to potential cheese market price volatility. WESTERN WHOLESALE PRICE ADJUSTMENTS In the West, wholesale prices are up $.0925 for process, and up $.1450 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 2.1075-2.3075 Cheddar 40 pound Block 1.8600-2.3500 Monterey Jack 10 pounds 2.0950-2.3700 Process American 5 pound Loaf 1.6975-1.9525 Swiss 6-9 pound Cuts 3.6800-4.1100 Information for the period January 11 - 15, 2021, issued weekly Secondary Sourced Information: DAIRY PRODUCTS REPORT – CHEESE SUMMARY Released January 6, 2021, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Cheese Production – United States: November 2019 and 2020 Monthly Production (1000 pounds) Percent Change from Total Cheese 1 NOV OCT NOV NOV OCT Region 2019 2020 2020 2019 2020 United States 1,093,397 1,131,266 1,100,218 0.6 -2.7 Atlantic 133,685 139,768 132,944 -0.6 -4.9 Central 499,688 539,107 515,188 3.1 -4.4 West 460,024 452,391 452,086 -1.7 -0.1 Monthly Production (1000 pounds) Percent Change from American Cheese 2 NOV OCT NOV NOV OCT Region 2019 2020 2020 2019 2020 United States 432,438 462,048 449,236 3.9 -2.8 Atlantic 28,371 26,886 28,045 -1.1 4.3 Central 216,701 234,341 227,533 5.0 -2.9 West 187,366 200,821 193,658 3.4 -3.6 Monthly Production (1000 pounds) Percent Change from Italian Cheese NOV OCT NOV NOV OCT Region 2019 2020 2020 2019 2020 United States 471,962 468,629 457,483 -3.1 -2.4 Atlantic 59,627 59,904 58,458 -2.0 -2.4 Central 184,485 194,886 187,137 1.4 -4.0 West 227,850 213,839 211,888 -7.0 -0.9 Cheese Production – Cumulative Production January - November Cumulative Production Percent Change (1000 pounds) from Cheese Type 2019 2020 2019 Total cheese 1 12,014,697 12,063,448 0.4 American Cheese 2 4,775,864 4,879,596 2.2 Italian Cheese 5,187,194 5,115,701 -1.4 1/ Excludes cottage cheese. 2/ Includes cheddar, colby, washed curd, stirred curd, Monterey and jack. CME CLOSE In CME Group trading Wednesday, barrels closed at $1.5800, compared to the weekly average price of $1.5965 from last week. Blocks closed at $1.9100, compared to the weekly average price of $1.7790 from last week. 2020 U.S. CHEESE AND CURD EXPORTS (USDA-FAS) 2020 Exports % Change From (Million Lb.) 1 Year Ago November 52.8 - 16 TOTAL, JAN-NOV 728.3 ... Exports – Destination Country 1 Mexico 188.5 - 1 2 South Korea 146.9 + 16 3 Japan 74.5 + 3 4 Australia 50.7 + 21 5 Chile 22.8 + 1 2020 U.S. CHEESE AND CURD IMPORTS (USDA-FAS) (Imports for Consumption) 2020 Imports % Change From November Imports (Million Lb.) 1 Year Ago TOTAL Cheese and Curd (H.S. Code 0406) 36.9 + 14 Cheese, Except Fresh (H.S. Code 040690) 32.9 + 15 Fresh Cheese (H.S. Code 040610) 2.0 + 51 Cheese, Processed (H.S. Code 040630) 1.3 - 26 Cheese, Blue-Veined (H.S. Code 040640) 0.6 - 5 2020 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN-NOV 330.1 - 9 Imports - Country of Origin 1 Italy 58.6 - 24 2 France 38.2 - 16 3 Netherlands 30.4 + 1 4 Switzerland 19.3 + 8 5 Spain 17.3 - 18 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