MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  August 26, 2015 (REPORT 34)                        

WEST CHEESE                                                      

West cheese production is steady. The beginning of school terms and increase in 
bottling has pulled some milk away from processing, but the impact has been minimal. 
Manufacturers report a slow seasonal decline in milk production and an adequate 
supply of milk for processing. Domestic cheese demand and retail sales have been 
strong throughout the summer. Industry contacts suggest inventories of hard Italian 
cheeses and cheddars are building in advance of the Q4 holidays. Current market 
prices at the CME Group have been range bound between $1.60 and $1.75. Industry 
contacts suggest this will not likely change soon, however the strength of Q4 sales 
could have a significant impact on price pressures faced by the industry in 2016. The 
DMN National Retail Report - Dairy for the week of August 21 - 27 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.34, down $.01 from last week and down $.08 from a year ago. Packs 
averaged $2.43 in the Southwest and $2.36 in the Northwest. For 8 ounce blocks, the 
U.S. price is $2.31, down $.05 from last week and unchanged from a year ago. Blocks 
in the Southwest averaged $2.34, and in the Northwest, $1.99. Western wholesale 
prices are unchanged for Swiss cuts, down $.0300 for process, and down $.0175 for all 
other types. According to the NASS Cold Storage report, U.S. stocks of cheese (total 
natural) at the end of July 2015 were 1.16 billion pounds, up 2% from June 2015 and 
up 10% from July 2014. American stocks were 6% more, other natural stocks were 20% 
more, but Swiss stocks were 12% less than last year. In the Mountain Region, American 
cheese stocks were 5% more than one year earlier and 9% higher than one month 
earlier. Pacific Region American cheese stocks were 11% less than one year earlier 
but 2% more than a month before. Also in the Pacific Region, other natural cheese 
stocks were 35% above a year ago but 5% below a month ago. In CME Group trading 
Wednesday, Barrels closed at $1.6000, down $.0600 from last Wednesday and Blocks 
closed at $1.6700, down $.0200. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7875-2.0450     
Cheddar 40# Block                            : 1.8100-2.2550     
Cheddar 10# Cuts                             : 1.9900-2.2100     
Monterey Jack 10#                            : 2.0000-2.1600     
Grade A Swiss Cuts 6 - 9#                    : 2.8300-3.2600     

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