MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  May 6, 2015 (REPORT 18)                           

WEST CHEESE                                                      

Block market prices have closed at the same price for 11 trading days at the 
CME Group and seem to reflect the continued firm pattern within the market. 
Western cheese production remains active with strong buyer interest. Strong 
contract sales appear to be continuing. Industry contacts suggested they have 
made some spot sales and there is currently more interest by manufacturers to 
produce cheese than some other dairy commodities.  Consumer demand appears to 
be stable, without a lot of variation among varieties.  Some industry 
participants note cheese is being placed into storage for future consumption.  
The DMN National Retail Report-Dairy for the week of May 1 - 7 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural 
shredded cheese is $2.34, down $.20 from last week and down $.03 from a year 
ago.  Packs averaged $2.55 in the Southwest and $2.74 in the Northwest.  For 
8 ounce blocks, the U.S. price is $2.27, down 11 cents from last week and 
down 16 cents from a year ago.  Blocks in the Southwest averaged $2.36 and in 
the Northwest, $2.80.  Western wholesale prices are up $.0050 for process, 
Grade A Swiss cuts 6 - 9# declined $.0800, and the remaining varieties 
increased $.0075.  Dairy Products (NASS) reports March 2015 U.S. total cheese 
production, 987.2 million pounds, leads March last year by 1.8% and is 11.3% 
above February this year. For various types of cheese, March 2015 U.S. 
production compared with March 2014 includes: American, +1.7%; cheddar, 
+0.5%; total Italian, +1.5%; and Swiss, +3.6%.  In the West, cheese 
production for March 2015 compared with March 2014 was: total cheese, +0.7%; 
American cheese, -1.0%; cheddar cheese, -5.0%; total Italian cheese, +2.7%; 
and mozzarella cheese, +2.5%.  The CME Group April 2015 monthly average price 
for barrels, $1.6135, is up $.0845 from March but down $.5707 from April one 
year ago. Blocks' April average price, $1.5890, is up $.0341 from March but 
down $.6549 from one year ago. In CME Group trading Wednesday, Barrels closed 
at $1.6150, down $.0025 from last Wednesday and Blocks closed at $1.6100, no 
change from last Wednesday.  

                                                                 
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7400-1.9975     
Cheddar 40# Block                            : 1.7200-2.1650     
Cheddar 10# Cuts                             : 1.9000-2.1200     
Monterey Jack 10#                            : 1.9100-2.0700     
Grade A Swiss Cuts 6 - 9#                    : 2.7500-3.1800     


1530CT eric.graf@ams.usda.gov 608.557.7005 and mike.bandli@ams.usda.gov 
608.557.7010
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