MD_DA840 DA MD DA840 Cheese - West MADISON, WI. October 21, 2015 (REPORT 42) WEST CHEESE Western cheese production is steady. Manufacturers report there is no problem getting milk for cheese making, but discounted loads of milk aren't widely available either. A strong domestic demand for natural cheese has continued into fall. Some manufacturers report being short certain varieties of cheese and adjusting production schedules to rebuild inventories a little. Other industry contacts suggest cheese stocks are sufficient to meet Q4 holiday demand. These contacts are concerned about what a typical, post-Super Bowl decline in demand may have on cheese prices. The DMN National Retail Report - Dairy for the week of October 16 - 22 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.25, down $.22 from last week and down $.44 from a year ago. Packs averaged $2.13 in the Southwest and $2.49 in the Northwest. For 8 ounce blocks, the U.S. price is $2.30, down $.07 from last week and down $.33 from a year ago. Blocks in the Southwest averaged $2.39, and in the Northwest, $2.53. In the West, wholesale prices are up $.0050 for process, but down $.0400 for cheddar block, cuts, and Monterey jack. Prices for Swiss cuts are unchanged. This week, a cooperative export assistance program accepted requests for 2.196 million pounds cheese. In CME Group trading Wednesday, barrels closed at $1.6025, down $.0375 from last Wednesday and blocks closed at $1.6125, down $.0775. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.7600-2.0175 Cheddar 40# Block : 1.7950-2.2400 Cheddar 10# Cuts : 1.9750-2.1950 Monterey Jack 10# : 1.9850-2.1450 Grade A Swiss Cuts 6 - 9# : 2.8450-3.2750 2015 U.S. Cheese Imports (USDA-FAS) (Million Lb.) % Change From % of 1 Year Ago Yearly Quota Sep Quota Imports 18.5 + 8.1 6.2 Jan. - Sep High Tier 27.1 + 25.5 N.A. Quota Imports 152.3 + 25.2 51.0 Dairy Market News Reporting Changes Proposal Dairy Market News (DMN) is proposing updating the Dairy Market News Working Guidelines. This proposal is the result of an industry comment period. The updates would allow DMN market reports to additionally include information and sales prices reported by individuals and firms functioning as marketing agents selling on the behalf of dairy product manufacturers. The Working Guidelines updates are intended to capture more information on pricing and market conditions and reflect the evolution of the marketing of dairy products. Currently, market pricing information is collected for first sale, f.o.b. producers' plants or warehouses. The changes would be effective starting with Report 1, January 2016. Comment by October 30, 2015 to: DMN@ams.usda.gov Link to current DMN working guidelines: http://www.ams.usda.gov/market-news/individual-dairy-market-news-commodity-reports 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