MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  March 04, 2015 (REPORT 9)                          

WEST CHEESE 

Most Western cheese plants are receiving slightly more milk this week 
than last week, which keeps schedules full.  There is a general 
feeling of confidence in price stability, following mostly unchanged 
CME Group cheese prices many days last week into this week.  With milk 
to be processed, cheese seems a choice many processors are making.  
Customers continue to place orders and receive cheese deliveries, 
although in some plants at a slightly slower pace than recent weeks.  
Inventories are being built with confidence, both by customers and 
manufacturers.  Cheese manufacturers with contracted sales report that 
customers are taking cheese on time with no pushback.  Contract and 
spot cheese customers in the West are said to have a "good appetite" 
for cheese.  On the horizon some weeks ahead is awareness of the 
potential for what some manufacturers believe could be minor softening 
in domestic cheese prices, as the spring flushes in the U.S. and EU 
progress.  Where that thought is expressed, the potential does not 
appear to be materially changing current production or plans.  The DMN 
National Retail Report-Dairy for the week of February 27 - March 5 
shows the U.S. weighted average advertised retail price for an 8 ounce 
pack of natural shredded cheese is $2.41, down $.05 from last week but 
$.01 higher than a year ago.  Packs averaged $2.50 in the Southwest 
and $2.38 in the Northwest.  Western wholesale prices are unchanged 
for process and Swiss, but up $.0025 for the remaining varieties.  The 
CME Group February 2015 monthly average price for barrels, $1.4849, is down 
$.0146 from January and down $.6908 from February one year ago.  Blocks' February 
average price, $1.5382, is up $.0164 from January but down $.6563 from one year 
ago.  In CME Group cheese trading, barrels closed Wednesday this week at $1.4925, 
up 1 cent from Wednesday last week and blocks closed at $1.5500, up 1/2 cent.  
NASS reports that January 2015 total cheese output was 980.13 million pounds, 
2.8% above January 2014 but 1.9% below December 2014.  Total American cheese 
production, 393.38 million pounds, was 3.4% above January 2014 and 0.9% above the 
prior month.  Other cheese production for January, 101.69 million pounds, was 
1.5% below January 2014 and 4.1% below December 2014.  
                                                     
                                                                
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6075-1.8650     
Cheddar 40# Block                            : 1.6550-2.1000     
Cheddar 10# Cuts                             : 1.8350-2.0550     
Monterey Jack 10#                            : 1.8450-2.0050     
Grade A Swiss Cuts 6 - 9#                    : 3.4700-3.9000   




1530CT eric.graf@ams.usda.gov 608.278.4152
USDA/AMS/Dairy Market News, Madison, Wisconsin 
Dairy Market News website: www.ams.usda.gov/dairymarketnews 
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home