Cheese - West
MD_DA840

     Cheese - Western U.S.

     Report 33 - Released on August 12, 2020

     Western cheesemakers report international buyers are showing a little more interest now that
     cheese prices have fallen. But as cheese supply and demand pitch and yaw, market
     participants are hesitant to make any sudden moves. Buyers seem willing to wait for a better
     deal, unsure if the market bottom has been reached. Demand is mixed as some shoppers may
     take on loads of cheese to fill existing needs, but others wait on the sidelines. Cheese
     availability has improved. Export deals inked when cheese prices were at the lowest are
     getting finished up. Some restaurants may face tighter restrictions while the states and
     nation grapple with heavy COVID-19 caseloads, releasing more cheese into the market.
     Manufacturers want to control production and not get swamped by supply. A few industry
     contacts suggest that cheese makers in parts of the West are pushing off extra loads of milk
     to control supplies.


     WESTERN WHOLESALE PRICE ADJUSTMENTS
     In the West, wholesale prices are down $.6575 for process, and down $.4900 for cheddar
     block, cuts and Monterey Jack. Swiss cut wholesale prices are down $.1050 from the previous
     week.


     WHOLESALE SELLING PRICES: DELIVERED
     DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

     Cheddar 10 pound Cuts               2.1925-2.3925
     Cheddar 40 pound Block              1.9450-2.4350
     Monterey Jack 10 pounds             2.1800-2.4550
     Process American 5 pound Loaf       1.8325-2.0875
     Swiss 6-9 pound Cuts                2.6025-3.0325

     Information for the period August 10 - 14, 2020, issued weekly

     Secondary Sourced Information:

     CME CLOSE
     In CME Group trading Wednesday, barrels closed at $1.4650, compared to the weekly average
     price of $1.7275 from last week. Blocks closed at $1.6050, compared to the weekly average
     price of $1.8685 from last week.

     EXPORT ASSISTANCE
     This week, a cooperative export assistance program accepted requests for export assistance
     on contracts to sell 544,542 pounds (247 metric tons) of cheese. So far this year, the
     program has assisted member cooperatives who have contracts to sell 22.747 million pounds
     of American-type cheeses in export markets. When combined with butter, cream cheese and
     whole milk powder, the program has assisted members with sales of 726.6 million pounds of
     milk on a milkfat basis.


     2020 U.S. CHEESE AND CURD EXPORTS (USDA-FAS)
                      2020 Exports      % Change From
                      (Million Lb.)       1 Year Ago
     June                 84.7              + 28

     TOTAL, JAN-JUN      425.6               ...
     Exports � Destination Country
      1 Mexico           115.4              + 14
      2 South Korea       85.2               ...
      3 Japan             44.9              -  9
      4 Australia         30.9              + 28
      5 Chile             12.8              +  5


     2020 U.S. CHEESE AND CURD IMPORTS (USDA-FAS)
     (Imports for Consumption)
                                                2020 Imports      % Change From
     June Imports                             (Million Lb.)        1 Year Ago
       TOTAL Cheese and Curd (H.S. Code 0406)       24.0             - 18
       Cheese, Except Fresh (H.S. Code 040690)      20.6             - 19
       Fresh Cheese (H.S. Code 040610)               1.9             -  6
       Cheese, Processed (H.S. Code 040630)          1.2             + 17
       Cheese, Blue-Veined (H.S. Code 040640)        0.3             - 50

                                                2020 Imports      % Change From
                                                (Million Lb.)      1 Year Ago
     TOTAL, JAN-JUN                                163.1             -  8
     Imports - Country of Origin
      1 Italy                                       30.7            -  23
      2 France                                      18.4            -  16
      3 Netherlands                                 15.6            +  16
      4 Switzerland                                  9.7            +  11
      5 Spain                                        9.4            -  19

     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