MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  April 1, 2015 (REPORT 13)                         

WEST CHEESE                                                      
                                                                 
This week it was observed that the depth of the desire to build cheese 
inventories is greater than had recently been expected.  Much current 
buying is still inventory focused, with the observation being made 
that cheap money is fuelling the ability to do this.  Many Western 
cheese plants this week have received greater order volume than had 
been expected.  Some plants are fortifying vats with nonfat dry milk 
to improve yields.  Production schedules are active in seeking to meet 
demand.  In fact recent thoughts about reducing retail cheese pricing 
for some brands have been set aside because consumer demand at current 
prices remains strong.  There is some discussion about the end of 
quotas in the European Union being expected to impede U.S. cheese 
exports to the EU in coming months.  Manufacturers note that import 
volumes of EU cheese moving to the U.S. are less likely to be 
affected, because exporters in the EU have already found homes for EU 
cheese in the U.S. and little expansion is likely.  The DMN National 
Retail Report-Dairy for the week of March 27 - April 2 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of 
natural shredded cheese is $2.42, down $.02 from last week and a year 
ago.  Packs averaged $2.72 in the Southwest and $2.58 in the 
Northwest.  Western wholesale prices are down $.0250 for process, 
Swiss is unchanged, and the remaining varieties are down $.0275.  In 
CME Group cheese trading, barrels closed Wednesday this week at 
$1.5950, up $.0850 from Wednesday last week and blocks closed at 
$1.5800, up $.0500. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6375-1.8950     
Cheddar 40# Block                            : 1.6425-2.0875     
Cheddar 10# Cuts                             : 1.8225-2.0425     
Monterey Jack 10#                            : 1.8325-1.9925     
Grade A Swiss Cuts 6 - 9#                    : 3.0125-3.4425     

1530CT eric.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