MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  August 05, 2015 (REPORT 31)                        

WEST CHEESE                                                      

Western cheese producers report domestic consumer demand is strong. Cheese making has 
remained active as manufacturers continue to try to absorb the available milk. Milk 
intakes have decreased somewhat, following typical summer patterns. The daily 
fluctuations in temperatures have not seemed to significantly impact milk production. 
Trading at the CME has bounced within a range, but above prices that were anticipated 
for the market earlier this summer. Industry contacts are considering whether these 
prices can hold through the end of summer. Inventories remain at comfortable levels. 
Western wholesale prices are unchanged for Swiss cuts, up $.0350 for process, and up 
$.0300 for all other types. The DMN National Retail Report - Dairy for the week of 
July 31 - August 6 shows the U.S. weighted average advertised retail price for an 8 
ounce pack of natural shred cheese is $2.21, down $.22 from last week and down $.12 
from a year ago. Packs averaged $1.94 in the Southwest and $2.69 in the Northwest. 
For 8 ounce blocks, the U.S. price is $2.22, down $.05 from last week and down $.35 
from a year ago. Blocks in the Southwest averaged $1.93, and in the Northwest, $3.06. 
Dairy Products (NASS) reports June 2015 U.S. total cheese production, 959.0 million 
pounds, leads June last year by 1.5% but is 3.1% below May this year. For various 
types of cheese, June 2015 U.S. production compared with June 2014 includes: 
American, +3.6%; cheddar, +4.3%; total Italian, +1.0%; mozzarella, -1.0; and Swiss, 
+2.6%. In the West, cheese production for June 2015 compared with June 2014 was: 
total cheese, +0.3%; American, +4.1%; cheddar, +7.2%; total Italian, +0.6%; and 
mozzarella, -0.9%. The CME Group July 2015 monthly average price for barrels, 
$1.6313, is down $.0377 from June and down $.3657 from July one year ago. Blocks' 
July average price, $1.6659, is down $.0393 from June and down $.3211 from one year 
ago. In CME Group trading Wednesday, Barrels closed at $1.6750, down $.0150 from last 
Wednesday but Blocks closed at $1.7125, up $.0125. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7925-2.0500     
Cheddar 40# Block                            : 1.8050-2.2500     
Cheddar 10# Cuts                             : 1.9850-2.2050     
Monterey Jack 10#                            : 1.9950-2.1550     
Grade A Swiss Cuts 6 - 9#                    : 2.7875-3.2175     


1530CT mike.bandli@ams.usda.gov 608.557.7010
USDA/AMS/Dairy Market News, Madison, Wisconsin 
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home