MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  November 04, 2015 (REPORT 44)                      

WEST CHEESE                                                      

Some Western contacts report strong milk supplies have allowed them to maintain full 
cheese production schedules. Although milk production has decreased following seasonal 
trends, most processors are not having any trouble getting milk for processing needs. 
Manufacturers say cheese demand from food service and retail is still good. So far, the 
demand pull has prevented cheese makers from building inventories of most natural 
varieties of cheese. Inventories of cheese barrels are mixed with a few processors saying 
barrels with age are a little heavy and fresh barrel stocks more tight. The DMN National 
Retail Report - Dairy for the week of October 30 - November 5 shows the U.S. weighted 
average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.14, 
down $.15 from last week and down $.32 from a year ago. Packs averaged $2.13 in the 
Southwest and $2.06 in the Northwest. For 8 ounce blocks, the U.S. price is $2.29, up 
$.13 from last week but down $.12 from a year ago. Blocks in the Southwest averaged 
$2.21, and in the Northwest, $2.36. In the West, wholesale prices are down $.0250 for 
process, and down $.0125 for cheddar block, cuts, and Monterey jack. Prices for Swiss 
cuts are unchanged. This week, a cooperative export assistance program accepted requests 
for 1.524 million pounds of cheese. Dairy Products (NASS) reports total 2015 U.S. cheese 
production, year to date through September, is 8.710 billion pounds, 2.5% above 2014. 
September 2015 U.S. total cheese production, 956.0 million pounds, is 2.4% above 
September last year but is 2.3% below August this year. In the West, total cheese 
production for September 2015 was 411.4 million pounds, 2.0% more than September 2014. 
For various types of cheese, September 2015 U.S. and West cheese production compared to 
September 2014 is as follows:

	U.S.	West
American	+2.8%	+0.3%
Cheddar		+3.8%	+4.4%
Total Italian	+0.4%	+1.3%
Mozzarella	+0.6%	+1.1%
Swiss		+8.3%	 na

The CME Group October 2015 monthly average price for barrels, $1.6072, is up from the 
September monthly average of 1.5840, but down from the monthly average of a year ago, 
$2.0782. Blocks' October average price, $1.6674, is up from the $1.6605 September monthly 
average but down from $2.1932 one year ago. In CME Group trading Wednesday, barrels 
closed at $1.6275, up $.0725 from a week ago and blocks closed at $1.6200, up $.0250. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6700-1.9275     
Cheddar 40# Block                            : 1.7175-2.1625     
Cheddar 10# Cuts                             : 1.8975-2.1175     
Monterey Jack 10#                            : 1.9075-2.0675     
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

September Total      48.9            - 20

TOTAL, JAN - SEP    541.0            - 15

 1 Mexico           152.0            + 11
 2 South Korea      104.7            - 14
 3 Japan             59.4            - 40
 4 Australia         31.1            - 6
 5 China             20.9            - 3


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