Cheese - West
USDA - Wed Jun 12, 11:27AM CDT
MD_DA840

     Cheese - Western U.S.

     Report 24 - Released on June 12, 2019

     Stability is the order of the day in the western cheese market. On one hand, downward price
     pressures on barrels were noticeable in the past week as customer preferences are moving
     from processed to natural cheese. On the other hand, block cheese prices are increasing,
     causing a limitation in demand when prices are higher than $1.70. According to industry
     contacts, the over 20 cents price spread between blocks and barrels has a negative impact on
     the western cheese market. Cheese block supplies are tighter than cheese barrels, partly due
     to higher block cheese exports at the beginning of the year. However, both cheese types have
     substantial stocks, but the stocks are not overwhelming. Cheese output and sales are mainly
     steady. Some of the U.S. trade concerns with Mexico have been lifted because the two
     countries have reached agreements that avoided a trade war. In the West, wholesale prices
     were down $.0300 for process, but up $.0425 for cheddar block, cuts and Monterey Jack. Swiss
     cut wholesale prices are up $.1300 from the previous week.

     National Retail Report Dairy � Cheese Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 6/07/2019
      to 6/13/2019
     Cheese 8 oz. Blocks                Weighted Average Price
     National                 This Period      Last Week      Last Year
     Organic                      n.a.            n.a.          $3.79
     Conventional                $2.08           $2.29          $2.13

     Regional (Conventional)   Wtd. Ave.          Low            High
     Northwest                   $1.58           $1.50          $1.69
     Southwest                   $1.99           $1.99          $1.99

     Cheese 8 oz. Shred                 Weighted Average Price
     National                 This Period      Last Week      Last Year
     Organic                     $3.50           $3.50           n.a
     Conventional                $2.17           $2.25          $2.33

     Regional (Conventional)   Wtd. Ave.          Low            High
     Northwest                   $1.95           $1.79          $2.00
     Southwest                   $2.24           $1.77          $2.99

     Regional (Organic)       Wtd. Ave.           Low            High
     Northwest                   $3.50           $3.50          $3.50
     WHOLESALE SELLING PRICES: DELIVERED
     DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

     Cheddar 10 pound Cuts               2.0400-2.2600
     Cheddar 40 pound Block              1.8600-2.3025
     Monterey Jack 10 pounds             2.0500-2.3225
     Process American 5 pound Loaf       1.6175-1.8725
     Swiss 6-9 pound Cuts                2.7225-3.1525

     Information for the period June 10 - 14, 2019, issued weekly

     Secondary Sourced Information:

     In CME Group trading Wednesday, barrels closed at $1.5525, compared to the weekly average
     price of $1.5110 from last week. Blocks closed at $1.7950, compared to the weekly average
     price of $1.7330 from last week.

     2019 U.S. Cheese and Curd Exports (USDA-FAS)
                      2019 Exports      % Change From
                      (Million Lb.)       1 Year Ago
     April                71.5              -  1

     TOTAL, JAN - APR    286.7              +  7
     Exports �Destination Country
      1 Mexico            67.9              -  7
      2 South Korea       58.1              + 36
      3 Japan             32.4              + 15
      4 Australia         17.9              -  8
      5 Chile              8.2              - 11


     2019 U.S. Cheese and Curd Imports (USDA-FAS)
     (Imports for Consumption)

                                                2019 Imports    % Change From
     April Imports                              (Million Lb.)     1 Year Ago
       TOTAL Cheese and Curd (H.S. Code 0406)       31.9             +  5
       Cheese, Except Fresh (H.S. Code 040690)      28.0             +  9
       Fresh Cheese (H.S. Code 040610)               1.6             - 24
       Cheese, Processed (H.S. Code 040630)          1.5             - 18
       Cheese, Blue-Veined (H.S. Code 040640)        0.7             -  1

                                                2019 Imports    % Change From
                                                (Million Lb.)     1 Year Ago
     TOTAL, JAN - APR                              117.2             +  1
     Imports - Country of Origin
     1 Italy                                        26.3             + 16
     2 France                                       13.9             +  5
     3 Netherlands                                   8.3             +  1
     4 Spain                                         6.7             -  9
     5 Switzerland                                   6.5             +  7
     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (608)422-8594
     Email: florence.konegonzalez@usda.gov

     AAdditional 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/