MD_DA840

     Cheese - Western U.S.

     Report 19 - Released on May 12, 2021

     In the West, this week, demand for cheese for retail has held steady. Contacts report mixed
     food service demand. While some purchasers are purchasing more to fill storage capacity,
     others are buying less as they have met their capacities. There is steady demand for cheese
     for export to Mexico and Asia. Amidst the current driver/truck shortage, increasing freight
     costs are a concern for cheese buyers. Some have begun to look for other avenues of
     transportation to fulfill orders. Mixed cheese inventories continue to be reported; blocks
     are available for spot purchase. Spot purchasers are having a better time obtaining barrels
     than in previous weeks, though inventories continue to be limited. With the high
     availability of milk in the region cheese production plants are running full schedules.
     Market tones are firm. Late last week, cheese barrel prices fell below blocks on the CME,
     where they have remained into this week.


     WESTERN WHOLESALE PRICE ADJUSTMENTS
     In the West, wholesale prices are down $.0150 for process, and down $.0200 for cheddar
     block, cuts and Monterey Jack. Swiss cut wholesale prices are down $0.0325 from the
     previous week.
     WHOLESALE SELLING PRICES: DELIVERED
     DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

     Cheddar 10 pound Cuts               2.1100-2.3100
     Cheddar 40 pound Block              1.8625-2.3525
     Monterey Jack 10 pounds             2.0975-2.3725
     Process American 5 pound Loaf       1.8975-2.1525
     Swiss 6-9 pound Cuts                3.0275-3.4575


     Information for the period May 10 - 14, 2021, issued weekly

     Secondary Sourced Information:

     CME CLOSE
     In CME Group trading Wednesday, barrels closed at $1.7550, compared to the weekly average
     price of $1.7960 from last week. Blocks closed at $1.8125, compared to the weekly average
     price of $1.7820 from last week.


     EXPORT ASSISTANCE
     This week, a cooperative export assistance program accepted requests for export assistance
     on contracts to sell 403,446 pounds (183 metric tons) of Cheddar and Monterey Jack cheese.
     So far this year, the program has assisted member cooperatives who have contracts to sell
     14.9 million pounds of American-type cheeses and 5.5 million pounds of cream cheese in
     export markets.

     When combined with butter, AMF, cream cheese and whole milk powder, the program has assisted
     members with sales of 722.3 million pounds of milk on a milkfat basis.

     Published by:
     Dairy Market News - Madison, WI
     ROMAN CARAMAN, (608) 422-8593
     Email: roman.caraman@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