U.S. Inventories for total cheese and other natural cheese were at record levels for the month of June

Cheese – Western U.S.

Report 31 – Released on August 01, 2018

Western cheese production is steady, and manufacturers say they have plenty of milk for cheese vats. Even with summer heat suppressing milk volumes and components, cheese production has been active. Inventories for total cheese and other natural cheese were at record levels for the month of June. The statistics suggest cheddar stocks are in relatively good balance, while mozzarella and hard Italian cheeses are long. Industry contacts say some manufacturers are planning to shift production back to cheddars to try to bring the composite cheese portfolio into better balance. Cheese purveyors describe demand as not good enough. They are hopeful that as schools start up and football seasons begin, institutional food service sales may improve and pizza sales may start to draw down mozzarella stocks.

 

National Retail Report Dairy a Cheese Summary
Advertised Prices at Major Retail Supermarket Outlets ending during the period of 7/27/2018 to 8/2/2018

Cheese 8 oz. Blocks Weighted Average Price
National This Period Last Week Last Year
Organic $3.00 $3.50 $4.99
Conventional $2.30 $2.40 $2.16

Regional (Conventional)
Wtd. Ave. Low High
ALASKA n.a. n.a. n.a.
HAWAII n.a. n.a. n.a.
NORTHWEST $2.23 $1.49 $2.99
SOUTHWEST $2.22 $1.49 $3.00

Cheese 8 oz. Shred Weighted Average Price
National This Period Last Week Last Year
Organic $3.00 n.a. n.a.
Conventional $2.30 $2.31 $2.09

Regional (Conventional)
Wtd. Ave. Low High
ALASKA $3.79 $3.50 $4.00
HAWAII n.a. n.a. n.a.
NORTHWEST $1.57 $1.49 $1.67
SOUTHWEST $2.33 $1.69 $3.99

Western Wholesale Price Adjustments
In the West, wholesale prices were up $.0975 for process, but down $.0200 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are unchanged.
WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

Cheddar 10 pound Cuts 1.8200-2.0400
Cheddar 40 pound Block 1.6400-2.0850
Monterey Jack 10 pounds 1.8300-1.9900
Process American 5 pound Loaf 1.5175-1.7750
Swiss 6-9 pound Cuts 2.6525-3.0825

Information for the period July 30 – August 3, 2018, issued weekly

Secondary Sourced Information:

Export Assistance
This week, a cooperative export assistance program accepted requests for export assistance on contracts to sell 908,305 pounds (412 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 45.446 million pounds of American-type cheeses in export markets.

California Dairy Product Data (CDFA)
According to the California Department of Food and Agriculture, June 2018 cheese production was 205.0 million pounds, down 1.0 percent from a year ago. California year-to-date cheese production through June is 1.262 billion pounds, up 0.4 percent from 2017 cheese production through June.

 

CME Close
In CME Group trading Wednesday, barrels closed at $1.4300, compared to the weekly average price of $1.4355 from last week. Blocks closed at $1.5400, compared to the weekly average price of $1.5180 from last week.

Published by:
Dairy Market News – Madison, WI
MIKE BANDLI, (608)422-8592
Email: [email protected]