MD_DA840 DA MD DA840 Cheese - West MADISON, WI. September 09, 2015 (REPORT 36) WEST CHEESE Industry contacts state cheese is readily available for buyers. Regular customer demand is steady, but spot sale activity has been limited. Cheese production has remained relatively strong through the end of summer. The dip in cheese production that normally occurs in late August through September has yet to materialize fully. Milk intakes have held higher than normal. Currently, cheese supply is a little stronger than demand, causing inventories of some varieties to build. Although manufacturers are not yet concerned, they are hopeful that the fall demand will increase and start to draw down inventories. The DMN National Retail Report - Dairy for the week of September 4 - 10 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.26, down $.20 from last week and down $.14 from a year ago. Packs averaged $2.33 in the Southwest and $2.78 in the Northwest. For 8 ounce blocks, the U.S. price is $2.14, down $.20 from last week and down $.25 from a year ago. Blocks in the Southwest averaged $2.19, and in the Northwest, $1.83. In the West, wholesale prices are up $.0475 for process, and up $.0325 for cheddar block, cuts, Monterey jack and other types. Prices are up $.0600 for Swiss cuts. Dairy Products (NASS) reports July 2015 U.S. total cheese production, 988.4 million pounds, leads July last year by 3.1% and is 2.5% above June this year. For various types of cheese, July 2015 U.S. production compared with July 2014 includes: American, +3.4%; cheddar, +4.7%; total Italian, +3.2%; mozzarella, +1.3; and Swiss, +3.4%. In the West, cheese production for July 2015 compared with July 2014 was: total cheese, +0.2%; American, +2.5%; cheddar, +5.7%; total Italian, +0.7%; and mozzarella, unchanged. The CME Group August 2015 monthly average price for barrels, $1.6689, is up from the July monthly average of 1.6313, but down from the monthly average of a year ago, $2.1961. Blocks' August average price, $1.7111, is up from the $1.6659 July monthly average but down from $2.1820 one year ago. In CME Group trading Wednesday, barrels closed at $1.6700, unchanged from last Wednesday and blocks closed at $1.6950, down $.0050. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.7725-2.0300 Cheddar 40# Block : 1.8225-2.2675 Cheddar 10# Cuts : 2.0025-2.2225 Monterey Jack 10# : 2.0125-2.1725 Grade A Swiss Cuts 6 - 9# : 2.8900-3.3200 2015 U.S. Cheese and Curd Exports (USDA-FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago July Total 56.3 - 21 TOTAL, JAN - JULY 442.2 - 13 1 Mexico 121.7 + 15 2 South Korea 88.1 - 7 3 Japan 50.8 - 37 4 Australia 26.9 + 6 5 China 17.3 - 2 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