MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  October 07, 2015 (REPORT 40)                       

WEST CHEESE                                                      

Western cheese makers report production is steady to lower and following the typical seasonal 
declines in milk production. An increase in milk components is helping to boost cheese yields. 
Domestic demand continues to be strong, especially for natural cheese varieties. Cheese consumption 
in the U.S. has helped support prices while export opportunities have been limited. Manufacturers 
report cheese inventories in general are creeping up. Industry contacts note barrels are somewhat 
longer than blocks. The DMN National Retail Report - Dairy for the week of October 2 - 8 shows the 
U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is 
$2.40, down $.05 from last week but up $.11 from a year ago. Packs averaged $2.43 in the Southwest 
and $2.19 in the Northwest. For 8 ounce blocks, the U.S. price is $2.44, up $.05 from both last 
week and from a year ago. Blocks in the Southwest averaged $2.42, and in the Northwest, $2.19. In 
the West, wholesale prices are up $.0475 for process, and up $.0675 for cheddar block, cuts, and 
Monterey jack. Prices for Swiss cuts are down $.0450. Dairy Products (NASS) reports August 2015 
U.S. total cheese production, 974.4 million pounds, is 3.5% above August last year but is 1.7% 
below July this year. In the West, total cheese production for August 2015 was 410.7 million 
pounds, 0.7% more than August 2014. For various types of cheese, August 2015 U.S. and West cheese 
production compared to August 2014 is as follows:
			U.S.		West
American		+3.5%		+3.7%
Cheddar		+3.1%		+4.0%
Total Italian		+2.2%		-1.4%
Mozzarella		+1.2%		-2.4%
Swiss			+10.5%

The CME Group September 2015 monthly average price for barrels, $1.5840, is down from the August 
monthly average of 1.6689, and down from the monthly average of a year ago, $2.3663. Blocks' 
September average price, $1.6605, is down from the $1.7111 August monthly average and down from 
$2.3499 one year ago. In CME Group trading Wednesday, barrels closed at $1.6200, up $.0575 from 
last Wednesday and blocks closed at $1.7275, up $.0575. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6800-1.9375     
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#                    : 2.8450-3.2750     


2015 U.S. Cheese and Curd Exports (USDA-FAS)

                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago
 
August Total         50.0            - 28
TOTAL, JAN - AUGUST 492.1            - 15

 1 Mexico           136.4            + 11
 2 South Korea       98.0            - 10
 3 Japan             54.6            - 39
 4 Australia         28.5            - 7
 5 Canada            18.3            - 8


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