MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  April 22, 2015 (REPORT 16)                         

WEST CHEESE    

In the West, the perspective is that milk production is increasing and 
generating volumes such that any plant seeking milk can find it.  A 
comment was that "you can buy all you want".  This is keeping cheese 
plant schedules mostly at capacity.  With barrels tighter, some plants 
able to manufacture barrels have been taking advantage of inverted 
block/barrel prices.  While cheese demand for consumption is strong, 
there is also production being set aside in storage for later use.  
Some focus is starting to be given to assessing what impact this 
factor of pulling future demand forward will have on cheese production 
in future months, but quantifying that uncertainty is far from 
reaching any consensus.  The DMN National Retail Report-Dairy for the 
week of April 17 - 23 shows the U.S. weighted average advertised 
retail price for an 8 ounce pack of natural shredded cheese is $2.30, 
down $.05 from last week and down $.14 from a year ago.  Packs 
averaged $2.47 in the Southwest and $3.06 in the Northwest.  For 8 
ounce blocks, the U.S. price is $2.22, down 18 cents from last week 
but up 1 cent from a year ago.  Blocks in the Southwest averaged $2.20 
and in the Northwest, $2.03.  This week 27% of national conventional 
dairy ads are for cheese.  Western wholesale prices are up $.0075 for 
process, unchanged for Grade A Swiss cuts 6 - 9#, and down $.0025 for 
the remaining varieties.  In CME Group trading Wednesday, barrels 
closed at $1.6200, up $.0050 from last Wednesday and blocks closed at 
$1.6100, up $.0375 from last Wednesday.  This reduced the barrel - 
block price inversion to $.0100 Wednesday, down from $.0425 last 
Wednesday.
                                                                                                                 
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7375-1.9950     
Cheddar 40# Block                            : 1.6850-2.1300     
Cheddar 10# Cuts                             : 1.8650-2.0850     
Monterey Jack 10#                            : 1.8750-2.0350     
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