MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  September 23, 2015 (REPORT 38)                     

WEST CHEESE                                                      

Western cheese makers report strong cheese demand, especially from consumers 
and retail outlets. Manufacturers say retailers are stocking up in advance of 
the Q4 holiday season. Cheese production has remained steady with a little 
more devotion to making natural varieties. Prices for blocks and barrels at 
the CME Group have continued to soften and the spread between blocks and 
barrels was $.1300 as of Wednesday. A few industry contacts feel inventories 
for barrels and blocks are long. The DMN National Retail Report - Dairy for 
the week of September 18 - 24 shows the U.S. weighted average advertised 
retail price for an 8 ounce pack of natural shredded cheese is $2.38, up $.11 
from last week but down $.14 from a year ago. Packs averaged $2.49 in the 
Southwest and $2.54 in the Northwest. For 8 ounce blocks, the U.S. price is 
$2.29, up $.08 from last week but down $.22 from a year ago. Blocks in the 
Southwest averaged $2.24, and in the Northwest, $2.48. In the West, wholesale 
prices are down $.0925 for process, and down $.0250 for cheddar block, cuts, 
and Monterey jack. Prices are unchanged for Swiss cuts. According to the NASS 
Cold Storage report, U.S. stocks of cheese (total natural) at the end of 
August 2015 were 1.17 billion pounds, unchanged from July 2015 but up 12% 
from August 2014. American stocks were 9% more, other natural stocks were 19% 
more, but Swiss stocks were 18% less than last year. In the Mountain Region, 
American cheese stocks were 10% more than one year earlier and 2% higher than 
one month earlier. Pacific Region American cheese stocks were 6% more than 
one year earlier and 5% more than a month before. Also in the Pacific Region, 
other natural cheese stocks were 26% above a year ago but 9% below a month 
ago. In CME Group trading Wednesday, barrels closed at $1.4600, down $.0800 
from last Wednesday and blocks closed at $1.5900, down $.0150. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6675-1.9250     
Cheddar 40# Block                            : 1.7775-2.2225     
Cheddar 10# Cuts                             : 1.9575-2.1775     
Monterey Jack 10#                            : 1.9675-2.1275     
Grade A Swiss Cuts 6 - 9#                    : 2.8900-3.3200     

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