MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  July 08, 2015 (REPORT 27)                          

WEST CHEESE                                                      

Western cheese manufacturers report milk is readily available for processing. The 
recent heat wave in the West has begun to impact milk supply and cheese yields. 
Industry contacts suggest the cows are willing to drink water, but are not interested 
in getting up to eat. However, most processors plan for a seasonal decline in milk 
intakes this time of year and current cheese production schedules have remained 
steady.  Many facilities operated throughout the holiday weekend. Cheese makers 
report relatively steady domestic demand for cheese. The DMN National Retail Report - 
Dairy for the week of July 3 - 9 shows the U.S. weighted average advertised retail 
price for an 8 ounce pack of natural shredded cheese is $2.45, up $.17 from last week 
and up $.15 from a year ago. Packs averaged $2.34 in the Southwest and $2.81 in the 
Northwest. For 8 ounce blocks, the U.S. price is $2.45, up $.28 from last week and up 
$.01 from a year ago. Blocks in the Southwest averaged $2.41, and in the Northwest, 
$3.00. Dairy Products (NASS) reports May 2015 U.S. total cheese production, 988.6 
million pounds, leads May last year by 1.8% and is 1.9% above April this year. For 
various types of cheese, May 2015 U.S. production compared with May 2014 includes: 
American, +1.6%; cheddar, +0.4%; total Italian, +1.9%; mozzarella, +2.1; and Swiss, 
+2.9%. In the West, cheese production for May 2015 compared with May 2014 was: total 
cheese, +2.4%; American, +1.3%; cheddar, -0.8%; total Italian, +3.9%; and mozzarella, 
+3.2%. Western wholesale prices are up $.0275 for Swiss cuts, but down $.0575 for 
process, and down $.0400 for all other types. The CME Group June 2015 monthly average 
price for barrels, $1.6690, is up $.0440 from May but down $.3166 from June one year 
ago. Blocks' June average price, $1.7052, is up $.0744 from May but down $.3185 from 
one year ago. In CME Group trading Wednesday, Barrels closed at $1.5900, down $.0100 
from last Wednesday and Blocks closed at $1.6525, up $.0200. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7100-1.9675     
Cheddar 40# Block                            : 1.7325-2.1775     
Cheddar 10# Cuts                             : 1.9125-2.1325     
Monterey Jack 10#                            : 1.9225-2.0825     
Grade A Swiss Cuts 6 - 9#                    : 2.7875-3.2175     

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

May                    64.7              -   8

Total Jan. - May      327.7              -  10
   1 Mexico            87.0              +  20
   2 South Korea       70.2              +  11
   3 Japan             38.1              -  32
   4 Australia         22.4              +  18
   5 China             11.9              -   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