MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  June 03, 2015 (REPORT 22)                          

WEST CHEESE                                                      

Additional milk made available for processing as school terms end has allowed some 
cheese makers to keep seasonally strong production schedules.  Western cheese makers 
report strong consumer demand for all varieties of branded products. This demand has 
driven steady contract sales, but spot sales have been slow to develop.  Some buyers 
are taking a wait and see position and are purchasing on immediate needs only. With 
lower exports, an increase in imports and adequate inventories, these buyers 
anticipate prices to soften in the near term.  The DMN National Retail Report-Dairy 
for the week of May 29 - June 4 shows the U.S. weighted average advertised retail 
price for an 8 ounce pack of natural shredded cheese is $2.34, down $.05 from last 
week and down $.03 from a year ago.  Packs averaged $2.84 in the Southwest and $2.65 
in the Northwest.  For 8 ounce blocks, the U.S. price is $2.23, down $.07 from last 
week and down $.21 from a year ago.  Blocks in the Southwest averaged $2.61, and in 
the Northwest, $2.25.  Western wholesale prices are up $.0175 for process, no change 
for Swiss cuts, and up $.0325 for all other types.  Dairy Products (NASS) reports 
April 2015 U.S. total cheese production, 979.1 million pounds, leads April last year 
by 1.9% but is 1.7% below March this year. For various types of cheese, April 2015 
U.S. production compared with April 2014 includes: American, +2.3%; cheddar, -1.8%; 
total Italian, +2.5%; and Swiss, +2.4%.  In the West, cheese production for April 
2015 compared with April 2014 was: total cheese, +2.5%; American cheese, +2.8%; 
cheddar cheese, -2.8%; total Italian cheese, +2.1%; and mozzarella cheese, +1.0%.  
The CME Group May 2015 monthly average price for barrels, $1.6250, is up $.0115 from 
April but down $.3735 from May one year ago. Blocks' May average price, $1.6308, is 
up $.0418 from April but down $.3847 from one year ago.  In CME Group trading 
Wednesday, Barrels closed at $1.7000, up $.0950 from last Wednesday and Blocks closed 
at $1.7400, up $.0800.  

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7550-2.0125     
Cheddar 40# Block                            : 1.7800-2.2250     
Cheddar 10# Cuts                             : 1.9600-2.1800     
Monterey Jack 10#                            : 1.9700-2.1300     
Grade A Swiss Cuts 6 - 9#                    : 2.7500-3.1800     

    2015 U.S. Cheese and Curd Exports (USDA-FAS)
                    (Million Lb.)   % Change From 
                                      1 Year Ago

April                  69.8              -   6

Total Jan. - Apr.     263.0              -  11
   1 Mexico            68.4              +  14
   2 South Korea       60.0              +  25
   3 Japan             30.2              -  33
   4 Australia         16.5              +   7
   5 China             10.0              -   3

1530CT 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