MD_DA840

     Cheese - Western U.S.

     Report 51 - Released on December 18, 2019

     Western cheese makers are trying to figure out which way the cash cheese market will turn
     next. After witnessing the precipitous drop of barrel and block cheese prices last week on
     the CME, market participants are ready for a winter holiday. Contracted cheese sales have
     been steady, but manufacturers say spot sales are quiet. Retailers have most of their
     seasonal cheese needs already. Processors think buyer interest may return after the holidays
     if the lower prices can stabilize. End users say they do not need to be in a rush to make
     purchases because there is plenty of cheese available. Milk is abundant, and handlers are
     preparing to juggle loads in the next few weeks. Manufacturers are running their plants at
     or near full capacity and are not overly eager to take on more milk.


     NATIONAL RETAIL REPORT DAIRY – CHEESE SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     12/23/2019 to 12/19/2019
     Cheese 8 oz. Blocks               Weighted Average Price
     National                 This Period     Last Week      Last Year
     Conventional                $2.23          $2.29          $2.06
     Organic                     $4.59          $4.99          $4.99

     Regional (Conventional)   Wtd. Ave.         Low            High
     Alaska                      $3.13          $1.99          $3.99
     Hawaii                      $2.80          $2.50          $3.00
     Northwest                   $1.63          $1.49          $1.99
     Southwest                   $2.19          $1.77          $3.00

     Regional (Organic)         Wtd. Ave.        Low            High
     Southwest                   $4.59          $3.99          $4.99


     Cheese 8 oz. Shred                 Weighted Average Price
     National                 This Period      Last Week      Last Year
     Conventional                $2.29          $2.32          $2.13
     Organic                      n.a.          $3.79           n.a.

     Regional (Conventional)    Wtd. Ave.        Low            High
     Alaska                      $1.99          $1.99          $1.99
     Hawaii                      $2.99          $2.99          $3.00
     Northwest                   $2.25          $1.49          $2.79
     Southwest                   $2.44          $1.77          $3.50


     Western Wholesale Price Adjustments
     In the West, wholesale prices were down $.3800 for process, and down $.0625 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               2.2275-2.4275
     Cheddar 40 pound Block              1.9800-2.4700
     Monterey Jack 10 pounds             2.2150-2.4900
     Process American 5 pound Loaf       1.9725-2.2275
     Swiss 6-9 pound Cuts                3.0900-3.5200

     Information for the period December 16 - 20, 2019, issued weekly

     Secondary Sourced Information:

     CME Close
     In CME Group trading Wednesday, barrels closed at $1.6150, compared to the weekly average
     price of $1.8690 from last week. Blocks closed at $1.8000, compared to the weekly average
     price of $1.8965 from last week.


     Export Assistance CWT
     This week, a cooperative export assistance program accepted requests for export assistance
     on contracts to sell 912,714 pounds (414 metric tons) of cheese. So far this year, the
     program has assisted member cooperatives who have contracts to sell 47.9 million pounds of
     American-type and Swiss cheeses in export markets.

     When combined with butter, cream cheese and whole milk powder, the program has assisted
     members with sales of 940 million pounds of milk on a milkfat basis.
     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