MD_DA840 Cheese - Western U.S. Report 44 - Released on October 28, 2020 Western cheese production remains strong. Some manufacturers report making cheese above the design capacity for their cheese plants, with the only down times for planned or unplanned maintenance or repairs. Retail demand is solid, but food service demand is mixed. Quick service restaurant sales are at or above previous year levels. However, demand from sit-down restaurants and institutions is still struggling to gain traction. Overall, cheese inventories in the West are lower. Buyers say they can find the cheese needed, but the cheese comes with a higher price tag. Government purchases are still a primary driving force behind higher market prices. As prices have edged upwards, some buyers are hesitant to take on cheese above their contractual obligations. The higher prices have increased their costs, and, as a result, increased the cost of their end products. In addition, a few processors say exports sales have become more difficult with current market prices. Some industry contacts hope the market regains some normalcy soon. WESTERN WHOLESALE PRICE ADJUSTMENTS In the West, wholesale prices are up $.1700 for process, and up $.0400 for cheddar block, cuts and Monterey Jack. Swiss cut wholesale prices are unchanged from the previous week. WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) Cheddar 10 pound Cuts 3.0775-3.2775 Cheddar 40 pound Block 2.8300-3.3200 Monterey Jack 10 pounds 3.0650-3.3400 Process American 5 pound Loaf 2.4450-2.7000 Swiss 6-9 pound Cuts 4.0050-4.4350 Information for the period October 26 - 30, 2020, issued weekly Secondary Sourced Information: COLD STORAGE � CHEESE SUMMARY Released October 22, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). 9/30/20 Stocks in all Warehouses (1,000 pounds) as a percent of Natural Cheese 9/30/19 8/31/20 9/30/20 9/30/19 8/31/20 Total natural cheese 1,373,856 1,377,907 1,360,286 99 99 American, total 774,761 789,594 772,584 100 98 New England 70,452 69,681 69,445 99 100 Middle Atlantic 87,000 69,355 68,775 79 99 East North Central 329,809 326,799 321,093 97 98 West North Central 114,446 125,703 129,448 113 103 South Atlantic 215 114 91 42 80 East South Central 10,856 11,811 8,735 80 74 West South Central 3,741 7,576 7,284 195 96 Mountain 50,439 49,443 50,024 99 101 Pacific 107,803 129,112 117,689 109 91 Swiss, total 26,392 20,602 20,762 79 101 Other, total 572,703 567,711 566,940 99 100 New England 1,219 738 681 56 92 Middle Atlantic 14,761 17,697 16,558 112 94 East North Central 365,354 349,932 351,029 96 100 West North Central 49,171 48,038 49,610 101 103 South Atlantic 39,943 42,839 45,582 114 106 East South Central 36,027 35,535 32,785 91 92 West South Central 2,233 8,588 7,582 340 88 Mountain 3,379 3,620 3,905 116 108 Pacific 60,616 60,724 59,208 98 98 CME CLOSE In CME Group trading Wednesday, barrels closed at $2.4700, compared to the weekly average price of $2.3440 from last week. Blocks closed at $2.7725, compared to the weekly average price of $2.7530 from last week. EXPORT ASSISTANCE This week, a cooperative export assistance program accepted requests for export assistance on contracts to sell 152,119 pounds (69 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 26.458 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 868.7 million pounds of milk on a milkfat basis. 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