MD_DA840

     Cheese - Western U.S.

     Report 7 - Released on February 13, 2019

     Western cheese makers say that at the moment, new business deals are harder to come by.
     Demand for American style blocks and barrels is slow. Buyer interest seemingly ebbs and
     flows as the market price for cheese rises and falls. Cheese is moving steadily through
     regular contracts, but industry contacts say there does not seem to be anything right now
     that will give a boost to sales. However, cash market prices have risen the last few weeks
     leading to a cacophony of possible explanations. Some contacts suggest Q4 consumption was
     better than expected and the industry is seeing a bit of a refill from the winter holidays
     and the Super Bowl. Others say marketers are getting prepared for some upcoming export
     tenders. Some also report more cheese moving into aging programs. Regardless, industry
     contacts are in agreement that inventories are long, and demand does not seem to be at
     levels hoped for. Industry contacts also suggest that in the recent absence of regular
     market production and stock number reports, it is difficult to get a picture of true supply
     and demand. Manufacturers say cheese production is running mostly seven days per week, but
     winter storms over the weekend have slowed cheese production in some regions due to
     challenges transporting milk and the need to refill the bottling pipeline following the
     storms. Cheese makers expect production in those regions to resume normal levels soon
     barring any further weather or market disruptions.


     National Retail Report Dairy ± Cheese Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 2/08/2019
      to 2/14/2019
     Cheese 8 oz. Blocks                Weighted Average Price
     National                   This Period     Last Week     Last Year
      Organic                    $5.42           $3.99          $3.91
      Conventional               $2.32           $2.05          $2.10

     Regional (Conventional)    Wtd. Ave.       Low           High
      Alaska                     $2.00           $2.00          $2.00
      Hawaii                     $2.59           $2.00          $3.00
      Northwest                  $2.02           $1.50          $2.99
      Southwest                   n.a.            n.a.           n.a.

     Cheese 8 oz. Shred                 Weighted Average Price
     National                   This Period     Last Week     Last Year
      Organic                     n.a.           $3.99          $4.20
      Conventional               $2.51           $2.11          $2.16

     Regional (Conventional)    Wtd. Ave.       Low           High
      Alaska                     $2.00           $2.00          $2.00
      Hawaii                     $2.56           $2.00          $3.00
      Northwest                  $2.22           $1.50          $2.50
      Southwest                  $2.50           $1.88          $3.00


     Western Wholesale Price Adjustments
     In the West, wholesale prices were up $.0500 for process, and up $.0275 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               1.7900-2.0100
     Cheddar 40 pound Block              1.6100-2.0525
     Monterey Jack 10 pounds             1.8000-1.9600
     Process American 5 pound Loaf       1.4025-1.6575
     Swiss 6-9 pound Cuts                2.6525-3.0825


     Information for the period February 11 - 15, 2019, issued weekly

     Secondary Sourced Information:

     Export Assistance CWT
     This week, a cooperative export assistance program accepted requests for export assistance
     on contracts to sell 2.701 million pounds (1,225 metric tons) of cheese. So far this year,
     the program has assisted member cooperatives who have contracts to sell 15.547 million
     pounds of American-type cheeses in export markets.

     When combined with butter and whole milk powder, the program has assisted members with sales
     of 215.0 million pounds of milk on a milkfat basis.


     CME Close
     In CME Group trading Wednesday, barrels closed at $1.4350, compared to the weekly average
     price of $1.3255 from last week. Blocks closed at $1.5925, compared to the weekly average
     price of $1.4880 from last week.
     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@ams.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 (MyMarketNews): https://mymarketnews.ams.usda.gov/
     DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home