Cheese - West
USDA - Wed Oct 09, 11:25AM CDT
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
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