MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  July 15, 2015 (REPORT 28)                          

WEST CHEESE                                                      

The market tone for Western cheese is steady. Although cheese yields have dropped a 
little, many cheese makers report plenty of milk to keep plants at full production. 
Manufacturers say current inventories can easily meet regular customer requests and 
inventories are well-balanced among varieties. They also note exports of American 
style cheese have dropped off. Industry contacts are trying to assess the chances of 
a slowdown in domestic demand. Through the first half of this year, domestic demand 
has been stronger than anticipated. However, they are unsure whether private cheese 
holdings will become saturated and if those buyers will slow their purchasing through 
the end of the year. The DMN National Retail Report - Dairy for the week of July 10 - 
16 shows the U.S. weighted average advertised retail price for an 8 ounce pack of 
natural shredded cheese is $2.34, down $.11 from last week and down $.24 from a year 
ago. Packs averaged $2.69 in the Southwest and $2.76 in the Northwest. For 8 ounce 
blocks, the U.S. price is $2.28, down $.17 from last week and down $.29 from a year 
ago. Blocks in the Southwest averaged $2.44, and in the Northwest, $2.15. Western 
wholesale prices are unchanged for Swiss cuts, up $.0225 for process, and up $.0400 
for all other types. In CME Group trading Wednesday, Barrels closed at $1.6100, up 
$.0200 from last Wednesday and Blocks closed at $1.6400, down $.0125. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7325-1.9900     
Cheddar 40# Block                            : 1.7725-2.2175     
Cheddar 10# Cuts                             : 1.9525-2.1725     
Monterey Jack 10#                            : 1.9625-2.1225     
Grade A Swiss Cuts 6 - 9#                    : 2.7875-3.2175     

2015 U.S. Cheese Imports (USDA-FAS)

                  (Million Lb.)       % Change From   % of 
                                      1 Year Ago      Yearly Quota

June  Quota Imports  18.0               + 34              6

Jan. - June    
High Tier            16.9               + 21              N.A.
Quota Imports        96.0               + 30              26


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