MD_DA840 Cheese - Western U.S. Report 2 - Released on January 08, 2020 In the West, cheese price volatility is affecting buyers' behaviors. Some of them are taking a break while monitoring market conditions, looking for the right time to buy. Several retailers are replenishing their stocks in the aftermath of the holidays. With the football season just a few weeks away, the hope is that there will be a revival in cheese sales. Meanwhile, cheese production is ongoing, stirred by strong milk availability in the region. There is also a good equilibrium between the quantity of cheese requested and stocks at hand. In the West, wholesale prices were down $.0150 for process, but up $.0625 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are up $.0450 from the previous week. NATIONAL RETAIL REPORT DAIRY – CHEESE SUMMARY Advertised Prices at Major Retail Supermarket Outlets ending during the period of 01/03/2020 to 01/09/2020 Cheese 8 oz. Blocks Weighted Average Price National This Period Last Week Last Year Conventional $2.39 $2.16 $2.27 Organic $3.99 $4.99 n.a. Regional (Conventional) Wtd. Ave. Low High Northwest $2.52 $2.00 $2.99 Southwest $2.56 $2.00 $2.99 Regional (Organic) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest $3.99 $3.99 $3.99 Cheese 8 oz. Shred Weighted Average Price National This Period Last Week Last Year Conventional $2.41 $2.26 $2.06 Organic $3.99 $3.99 n.a. Regional (Conventional) Wtd. Ave. Low High Northwest $2.00 $2.00 $2.00 Southwest $2.37 $2.00 $2.50 Regional (Organic) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest $3.99 $3.99 $3.99 WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) Cheddar 10 pound Cuts 2.2225-2.4225 Cheddar 40 pound Block 1.9750-2.4650 Monterey Jack 10 pounds 2.2100-2.4850 Process American 5 pound Loaf 1.7550-2.0100 Swiss 6-9 pound Cuts 3.1350-3.5650 Information for the period January 6 - 10, 2020, issued weekly Secondary Sourced Information: The CME Group December 2019 monthly average price for barrels, $1.8410, is down from the November monthly average of $2.2554, but up from the monthly average of a year ago, $1.2829. The December average price for blocks, $1.8764, is down from November monthly average of $1.9664, but up from the monthly average of a year ago, $1.3764. The average price for the year of 2019 was $1.6891 for barrels and $1.7784 for blocks. Dairy Products Report – Cheese Summary Released January 6, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Cheese Production – United States: November 2018 and 2019 Monthly Production (1000 pounds) Percent Change from Total Cheese 1 Nov Oct Nov Nov Oct Region 2018 2019 2019 2018 2019 United States 1,095,965 1,137,641 1,101,180 0.5 -3.2 Atlantic 134,643 139,916 133,709 -0.7 -4.4 Central 500,054 523,573 507,379 1.5 -3.1 West 461,268 474,152 460,092 -0.3 -3.0 Monthly Production (1000 pounds) Percent Change from American Cheese 2 Nov Oct Nov Nov Oct Region 2018 2019 2019 2018 2019 United States 434,185 445,950 434,839 0.2 -2.5 Atlantic 27,964 26,403 28,575 2.2 8.2 Central 218,199 226,504 218,856 0.3 -3.4 West 188,022 193,043 187,408 -0.3 -2.9 Monthly Production (1000 pounds) Percent Change from Italian Cheese Nov Oct Nov Nov Oct Region 2018 2019 2019 2018 2019 United States 469,207 485,386 473,772 1.0 -2.4 Atlantic 61,500 61,482 59,644 -3.0 -3.0 Central 184,726 192,059 186,708 1.1 -2.8 West 222,981 231,845 227,420 2.0 -1.9 Cheese Production – Cumulative Production January - November Cumulative Production Percent Change (1000 pounds) from Cheese Type 2018 2019 2018 Total cheese 1 11,912,176 12,007,209 0.8 American Cheese 2 4,805,493 4,764,568 -0.9 Italian Cheese 5,077,845 5,193,984 2.3 1/ Excludes cottage cheese. 2/ Includes cheddar, colby, washed curd, stirred curd, Monterey and jack. 2019 U.S. Cheese and Curd Exports (USDA-FAS) 2019 Exports % Change From (Million Lb.) 1 Year Ago November 62.7 + 7 TOTAL, JAN – NOV 731.4 + 4 Exports – Destination Country 1 Mexico 190.5 - 2 2 South Korea 127.9 + 11 3 Japan 73.0 + 7 4 Australia 42.1 - 17 5 Chile 22.6 + 4 2019 U.S. Cheese and Curd Imports (USDA-FAS) (Imports for Consumption) 2019 Imports % Change From November Imports (Million Lb.) 1 Year Ago TOTAL Cheese and Curd (H.S. Code 0406) 32.4 - 13 Cheese, Except Fresh (H.S. Code 040690) 29.6 - 13 Fresh Cheese (H.S. Code 040610) 1.4 - 24 Cheese, Processed (H.S. Code 040630) 1.7 + 12 Cheese, Blue-Veined (H.S. Code 040640) 0.6 - 25 2019 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN – NOV 365.5 + 4 Imports - Country of Origin 1 Italy 77.0 + 20 2 France 45.4 - 5 3 Netherlands 30.1 + 6 4 Spain 21.1 - 10 5 Switzerland 18.0 - 6 Published by: Dairy Market News - Madison, WI FLORENCE KONE-GONZALEZ, (608)422-8594 Email: florence.konegonzalez@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