MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  October 28, 2015 (REPORT 43)                       

WEST CHEESE

Domestic cheese demand has provided support for market prices throughout most of the 
year. Cheese makers say demand from food service and retail, in particular, is strong. 
Milk intakes have slowed following seasonal trends, but receipts are still robust. Many 
manufacturers report not having any trouble finding milk for cheese making needs. 
Industry contacts note overall cheese stocks have not been drawn down as much as usual 
due to strong cheese production and lower export opportunities. Some contacts suggest 
these heavy inventories could become a drag on prices if demand slips somewhat. The DMN 
National Retail Report - Dairy for the week of October 23 - 29 shows the U.S. weighted 
average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.29, 
up $.04 from last week but down $.40 from a year ago. Packs averaged $2.52 in the 
Southwest and $2.01 in the Northwest. For 8 ounce blocks, the U.S. price is $2.16, down 
$.14 from last week and down $.47 from a year ago. Blocks in the Southwest averaged 
$2.42, and in the Northwest, $1.76. In the West, wholesale prices are down $.0650 for 
process, cheddar block, cuts, and Monterey jack. Prices for Swiss cuts are unchanged. 
According to the NASS Cold Storage report, U.S. stocks of cheese (total natural) at the 
end of September 2015 were 1.15 billion pounds, down 2% from August 2015 but up 13% from 
September 2014. American stocks were 11% more, other natural stocks were 20% more, but 
Swiss stocks were 14% less than last year. In the Mountain Region, American cheese stocks 
were 11% more than one year earlier and 2% higher than one month earlier. Pacific Region 
American cheese stocks were 7% more than one year earlier but 6% less than a month 
before. Also in the Pacific Region, other natural cheese stocks were 41% above a year ago 
and 7% above a month ago. In CME Group trading Wednesday, barrels closed at $1.5550, down 
$.0475 from a week ago and blocks closed at $1.5950, down $.0175. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6950-1.9525     
Cheddar 40# Block                            : 1.7300-2.1750     
Cheddar 10# Cuts                             : 1.9100-2.1300     
Monterey Jack 10#                            : 1.9200-2.0800     
Grade A Swiss Cuts 6 - 9#                    : 2.8450-3.2750     

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