MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  September 16, 2015 (REPORT 37)                     

WEST CHEESE                                                      

Western cheese production is steady with some production shifting to natural cheese 
varieties. Manufacturers report milk intakes are a little lower, but components are 
beginning to increase and help improve cheese yields. Consumer demand is strong and sales 
are good for natural cheese. Industry contacts suggest inventories for barrels are long. 
Several contacts note a little tightness for blocks or at least a willingness by cheese 
producers to hold some inventories in advance of Q4 demand. The price spread between 
blocks and barrels narrowed to more normal levels in Wednesday trading at the CME Group. 
A few market participants anticipate the spread between blocks and barrels to continue to 
place price pressure on block cheese. The DMN National Retail Report - Dairy for the week 
of September 11 - 17 shows the U.S. weighted average advertised retail price for an 8 
ounce pack of natural shredded cheese is $2.27, up $.01 from last week but down $.13 from 
a year ago. Packs averaged $2.23 in the Southwest and $2.30 in the Northwest. For 8 ounce 
blocks, the U.S. price is $2.21, up $.07 from last week but down $.18 from a year ago. 
Blocks in the Southwest averaged $2.09, and in the Northwest, $1.99. In the West, 
wholesale prices are down $.0125 for process, and down $.0200 for cheddar block, cuts, 
and Monterey jack. Prices are unchanged for Swiss cuts. In CME Group trading Wednesday, 
barrels closed at $1.5400, down $.1300 from last Wednesday and blocks closed at $1.6050, 
down $.0900. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.7600-2.0175     
Cheddar 40# Block                            : 1.8025-2.2475     
Cheddar 10# Cuts                             : 1.9825-2.2025     
Monterey Jack 10#                            : 1.9925-2.1525     
Grade A Swiss Cuts 6 - 9#                    : 2.8900-3.3200     

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

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

Aug Quota Imports    16.8               + 15             6

Jan. - Aug    
High Tier            23.8               + 24             N.A.
Quota Imports       133.8               + 28             45


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