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MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  April 08, 2015 (REPORT 14)                         

WEST CHEESE    

Western cheese manufacturers continue to find strong customer demand 
for cheese.  The term "robust" was used in some discussions.  Retail 
customers are perceived to like current pricing, which is driving 
orders from retailers.  Demand is also strong from food service 
customers as well as brokers and resellers.  While some cheese is 
going into storage, there is a growing perception that fresh usage 
demand is accounting for significant volumes of cheese production.  
With steady to increasing milk supplies, maintaining desired cheese 
production is not presenting challenges to manufacturers.  Dairy 
Products (NASS) reports February 2015 U.S. total cheese production, 
884.3 million pounds, which leads February last year by 3.9% but is 
9.5% below January this year. For various types of cheese, February 
2015 U.S. production compared with February 2014 includes: American, 
+2.5%; cheddar, +3.4%; total Italian, +5.4%; and Swiss, +3.2%.  In the 
West, cheese production for February 2015 compared with February 2014 
was: total cheese, +4.1%; American cheese, +4.5%; cheddar cheese, 
+3.2%; total Italian cheese, +3.9%; and mozzarella cheese, +2.6%.  The 
DMN National Retail Report-Dairy for the week of April 3 - April 9 
shows the U.S. weighted average advertised retail price for an 8 ounce 
pack of natural shredded cheese is $2.39, down $.03 from last week and 
down $.05 from a year ago.  Packs averaged $2.73 in the Southwest and 
$2.76 in the Northwest.  For 8 ounce blocks, the U.S. price is $2.31, 
down 16 cents from last week but up 9 cents from a year ago.  Blocks 
in the Southwest averaged $2.58 and in the Northwest, $2.50.  Western 
wholesale prices are up $.0750 for process, Swiss is down $.1825, and 
the remaining varieties are up $.0450.  The CME Group March 2015 
monthly average price for barrels, $1.5290, is up $.0441 from February 
but down $.7500 from March one year ago.  Blocks' March average price, 
$1.5549, is up $.0167 from February but down $.8005 from one year ago.  
In CME Group trading Wednesday, Barrels closed at $1.6100, up $.0150 
from last Wednesday and Blocks closed at $1.5775, down $.0025 from 
last Wednesday.
                                                  
                                                                 
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7125-1.9700     
Cheddar 40# Block                            : 1.6875-2.1325     
Cheddar 10# Cuts                             : 1.8675-2.0875     
Monterey Jack 10#                            : 1.8775-2.0375     
Grade A Swiss Cuts 6 - 9#                    : 2.8300-3.2600                                                                      

1530CT eric.graf@ams.usda.gov 608.557.7005
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