MD_DA840

     Cheese - Western U.S.

     Report 33 - Released on August 14, 2019

     Western cheesemakers suggest cheese production is active. Milk supplies vary greatly
     depending on locations within the region. Ample milk supplies exist in the Pacific Northwest
     and mountain states, but are diminishing in the Southwest. A few manufacturers are bringing
     in extra milk loads, or loads of skim milk, to augment vat schedules. Other cheese makers
     are using nonfat dry milk to fortify their cheese production. End users relay they have no
     problem getting the cheese needed to satisfy their requests, even as stocks of some
     varieties of cheese have tightened. Cheese prices in the market exchanges seem to continue
     to find support. The daily close for CME blocks was $1.8925 Wednesday, a mark that hasn¶t
     been reached since November, 2016. While encouraging to American dairy interests,
     international sales are shying away because of the higher U.S. prices compared to world
     competitors. Industry contacts suggest domestic demand is adequate, but not outstanding.
     Food service and retail sales are both slower than hoped for, and manufacturers hope to see
     school startups and the oncoming football season boost cheese consumption.


     National Retail Report Dairy ± Cheese Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 8/9/2019
     to 8/15/2019
     Cheese 8 oz. Blocks                Weighted Average Price
     National                 This Period      Last Week      Last Year
     Conventional                $2.14           $2.18          $2.39
     Organic                     $2.14           $2.18          $2.39

     Regional (Conventional)   Wtd. Ave.          Low            High
     Hawaii                      $2.50           $2.50          $2.50
     Northwest                   $1.25           $1.25          $1.25
     Southwest                   $2.53           $1.99          $2.99


     Cheese 8 oz. Shred                 Weighted Average Price
     National                 This Period      Last Week      Last Year
     Conventional                $2.29           $2.22          $2.16
     Organic                      n.a.           $3.53          $3.17

     Regional (Conventional)   Wtd. Ave.          Low            High
     Alaska                      $5.00           $5.00          $5.00
     Hawaii                      $2.50           $2.50          $2.50
     Northwest                   $1.93           $1.25          $3.00
     Southwest                   $2.63           $1.99          $2.99


     Western Wholesale Price Adjustments
     In the West, wholesale prices were up $.0025 for process, and up $.0450 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               2.1950-2.3950
     Cheddar 40 pound Block              1.9475-2.4375
     Monterey Jack 10 pounds             2.1825-2.4575
     Process American 5 pound Loaf       1.8125-2.0675
     Swiss 6-9 pound Cuts                2.8750-3.3050

     Information for the period August 12 - 16, 2019, issued weekly

     Secondary Sourced Information:

     CME Close
     In CME Group trading Wednesday, barrels closed at $1.7550, compared to the weekly average
     price of $1.7080 from last week. Blocks closed at $1.8925, compared to the weekly average
     price of $1.8660 from last week.


     Export Assistance CWT
     This week, a cooperative export assistance program accepted requests for export assistance
     on contracts to sell 1.065 million pounds (483 metric tons) of cheddar and Monterey Jack
     cheese. So far this year, the program has assisted member cooperatives who have contracts to
     sell 37.4 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 747.3 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