MD_DA810                                                         
DA                                                               
MD DA810 Cheese - Northeast                                      

MADISON, WI.  January 06, 2016 (REPORT 1)                        

NORTHEAST WHOLESALE CHEESE:   
Cheese production has been reasonably active during the final 2015 
holiday weekend into the first week of 2016. Some larger plants operated 
heavier production schedules, while taking advantage of the increased 
milk availability and associated price discounts. With the re-opening of 
schools, Class I demand should ease manufacturing milk intakes. Demand 
for cheddar is steady to higher. Best interest is for shreds and natural. 
Interest in Swiss is steady to lower. In general, new cheese interest is 
relaxed in its development as buyers assess stock levels and measure 
holiday sale volumes prior to placing orders. Wholesalers and retailers 
are projecting increased sales for the next few weeks leading up to the 
Super Bowl. According to the DMN National Retail Report-Dairy, for 
January 1-7, 2016, the Northeast weighted average advertised price for 8 
oz. cheese blocks was $2.05, 4 cents more than the national average, but 
20 cents less than a week ago. The Southeast 8 oz. block cheese price was 
$2.07, 24 cents less than the previous week. The Northeast, December 2015 
DMN monthly average price for cheddar blocks was $2.0306, compared to 
$2.1684 the previous year. The average price for processed 5# sliced 
cheese was $1.9299, compared to $2.0402 one year ago. Last week, the CME 
Group average cheese price for both blocks and barrels posted an upturn. 
As a result, this week cheese prices for both Northeast wholesale cheddar 
and Muenster increased $0.0400, while processed cheese prices increased 
$0.0575. Grade A Swiss prices moved lower $0.0400 with adjustments 
based on lagging Class III component prices. Tuesday's CME Group daily 
cash prices saw barrels close at $1.4800, up $0.0100 from a week ago; 
blocks closed at $1.4900, up $0.0600 from a week ago. The CME Group 
December 2015 monthly average price for cheese barrels was $1.4638, 
compared to $1.5305 a year ago; cheese blocks averaged $1.4616, compared 
to $1.5938 a year ago.  
                                                                 
WHOLESALE SELLING PRICES: DELIVERED,                             
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Cheddar 40# Block                            : 1.8700-2.1550     
Process 5# Sliced                            : 1.6850-2.1650     
Muenster                                     : 1.8900-2.2400     
Grade A Swiss Cuts 10 - 14#                  : 3.1700-3.4925     

1100CT Daniel.Johnson@ams.usda.gov 608.557.7006
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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