MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  March 25, 2015 (REPORT 12)                         

WEST CHEESE    

Western cheese production is steady to higher on a week to week basis.  
The impact of seasonally increasing milk supplies and offers of 
surplus milk are keeping as much milk into cheese making as desired.  
In addition, NDM and condensed skim are available and affordable to be 
used to fortify/standardize cheese vats.  Overall, cheese demand 
remains fair to good across the variety spectrum.  Buyers are able and 
willing to buy and hold cheese at current pricing levels, especially 
cheddar.  Some buyers are taking physical hedges, while others are 
using futures markets to lock pricing.  Swiss demand remains good and 
moving well.  Lower pricing points due to declining milk pricing 
factors have made Swiss a better value.  The DMN National Retail 
Report-Dairy for the week of March 20 - 26 shows the U.S. weighted 
average advertised retail price for an 8 ounce pack of natural 
shredded cheese is $2.44, up $.09 from last week but the same price as 
a year ago.  Packs averaged $2.82 in the Southwest and $2.69 in the 
Northwest.  According to the NASS Cold Storage report, U.S. stocks of 
cheese (total natural) at the end of February 2015 were 1.064 billion 
pounds, up 5% (54.0 million pounds) from February 2014.  American 
stocks were 2% more, other natural stocks were 12% more, but Swiss 
stocks were 12% less.  Western wholesale prices are down $.0050 for 
process, Swiss is unchanged, and the remaining varieties are down 
$.0075.  In CME Group cheese trading, barrels closed Wednesday at 
$1.5100, down $.0500 from last Wednesday and blocks closed at $1.5300, 
down 4 cents from last Wednesday.
                                                               
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6625-1.9200     
Cheddar 40# Block                            : 1.6700-2.1150     
Cheddar 10# Cuts                             : 1.8500-2.0700     
Monterey Jack 10#                            : 1.8600-2.0200     
Grade A Swiss Cuts 6 - 9#                    : 3.0125-3.4425     
    

1530CT butch.speth.graf@ams.usda.gov 
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