MD_DA840 Cheese - Western U.S. Report 41 - Released on October 09, 2019 Western cheese makers describe demand as adequate, but not stellar. End users are generally not interested in taking on extra loads with market prices near the $2 mark. Instead, they prefer to work through inventories, buy only as needed and delay larger purchases until after the winter holidays, when they hope market prices might ease back. Export sales are also challenging as international buyers can find cheese at lower prices in other markets. However, some shoppers are working to get their Q4 cheese needs filled. Domestic retail accounts, food service businesses and pizza sales are engaged enough to keep U.S. cheese moving and market prices supported. Western manufacturers report cheese production is running full. And, while they would like sales to be livelier, the deals are able to keep inventories in check. Cheese stocks are heavy, but not burdensome. National Retail Report Dairy ± Cheese Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 10/04/2019 to 10/10/2019 Cheese 8 oz. Blocks Weighted Average Price National This Period Last Week Last Year Conventional $2.27 $2.07 $2.15 Organic n.a. $3.99 $4.39 Regional (Conventional) Wtd. Ave. Low High Alaska $2.50 $2.50 $2.50 Hawaii $2.79 $2.50 $3.00 Northwest $2.45 $1.50 $3.50 Southwest $1.92 $1.88 $2.00 Cheese 8 oz. Shred Weighted Average Price National This Period Last Week Last Year Conventional $2.24 $2.27 $2.19 Organic $3.79 $3.49 n.a. Regional (Conventional) Wtd. Ave. Low High Alaska $2.50 $2.50 $2.50 Hawaii $2.79 $2.50 $3.00 Northwest $2.53 $1.50 $3.50 Southwest $2.00 $2.00 $2.00 Regional (Organic) Wtd. Ave. Low High Northwest $3.79 $3.79 $3.79 Western Wholesale Price Adjustments In the West, wholesale prices were up $.1275 for process, and up $.0250 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are up $.1425 from the previous week. WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) Cheddar 10 pound Cuts 2.3225-2.5225 Cheddar 40 pound Block 2.0750-2.5650 Monterey Jack 10 pounds 2.3100-2.5850 Process American 5 pound Loaf 1.8525-2.1075 Swiss 6-9 pound Cuts 3.0050-3.4350 Information for the period October 7 - 11, 2019, issued weekly Secondary Sourced Information: Dairy Products Report ± Cheese Summary Released October 3, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Cheese Production ± United States: August 2018 and 2019 Monthly Production (1000 pounds) Percent Change from Total Cheese 1 Aug July Aug Aug July Region 2018 2019 2019 2018 2019 United States 1,086,966 1,092,686 1,110,622 2.2 1.6 Atlantic 133,829 133,942 132,891 -0.7 -0.8 Central 504,434 499,671 511,958 1.5 2.5 West 448,703 459,073 465,773 3.8 1.5 Monthly Production (1000 pounds) Percent Change from American Cheese 2 Aug July Aug Aug July Region 2018 2019 2019 2018 2019 United States 435,388 437,343 457,747 5.1 4.7 Atlantic 28,391 27,707 28,630 0.8 3.3 Central 216,951 218,184 215,086 -0.9 -1.4 West 190,046 191,452 214,031 12.6 11.8 Monthly Production (1000 pounds) Percent Change from Italian Cheese Aug July Aug Aug July Region 2018 2019 2019 2018 2019 United States 453,431 465,587 457,064 0.8 -1.8 Atlantic 59,105 58,457 57,838 -2.1 -1.1 Central 183,363 187,259 193,236 5.4 3.2 West 210,963 219,871 205,990 -2.4 -6.3 Cheese Production ± Cumulative Production January - August Cumulative Production Percent Change (1000 pounds) from Cheese Type 2018 2019 2018 Total cheese 1 8,602,965 8,676,375 0.9 American Cheese 2 3,490,154 3,467,820 -0.6 Italian Cheese 3,673,822 3,753,863 2.2 1/ Excludes cottage cheese. 2/ Includes cheddar, colby, washed curd, stirred curd, Monterey and jack. CME Group Monthly Averages The CME Group September 2019 monthly average price for barrels, $1.7463, is up from the August monthly average of $1.7081, and up from the monthly average of a year ago, $1.4503. The September average price for blocks, $2.0395, is up from the $1.8791 August monthly average, and up from $1.6438 one year ago. CME Close In CME Group trading Wednesday, barrels closed at $1.9350, compared to the weekly average price of $1.7485 from last week. Blocks closed at $2.0800, compared to the weekly average price of $1.9920 from last week. 2019 U.S. Cheese and Curd Exports (USDA-FAS) 2019 Exports % Change From (Million Lb.) 1 Year Ago August 58.6 - 6 TOTAL, JAN ± AUG 545.6 + 2 Exports ± Destination Country 1 Mexico 134.0 - 10 2 South Korea 101.3 + 13 3 Japan 58.7 + 7 4 Australia 32.3 - 16 5 Chile 16.7 + 6 2019 U.S. Cheese and Curd Imports (USDA-FAS) (Imports for Consumption) 2019 Imports % Change From August Imports (Million Lb.) 1 Year Ago TOTAL Cheese and Curd (H.S. Code 0406) 35.7 + 10 Cheese, Except Fresh (H.S. Code 040690) 31.9 + 13 Fresh Cheese (H.S. Code 040610) 1.7 - 5 Cheese, Processed (H.S. Code 040630) 1.1 - 24 Cheese, Blue-Veined (H.S. Code 040640) 0.8 - 5 2019 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN ± AUG 247.8 + 2 Imports - Country of Origin 1 Italy 56.5 + 25 2 France 30.0 - 2 3 Netherlands 19.6 + 7 4 Spain 15.8 - 7 5 Switzerland 11.5 - 4 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