MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  November 18, 2015 (REPORT 46)                      

WEST CHEESE                                                      

Western cheese production is steady with balanced milk supplies coming into cheese 
plants. Strong domestic retail demand for cheese is continuing into the Q4 holiday 
season. The pull from food service and pizza makers is good. Manufacturers report solid 
demand for natural varieties of cheese. The call for process cheese is lighter. 
Inventories of cheese barrels are long. Some manufacturers are working to clear stocks 
through the exchange. Trading activity has increased at the CME Group for barrels with 35 
sales completed in the last 5 trading sessions. The DMN National Retail Report-Dairy for 
the week of November 13-19 shows the U.S. weighted average advertised retail price for an 
8 ounce pack of natural shredded cheese is $2.39, down $.01 from last week and down $.17 
from a year ago. Packs averaged $2.35 in the Southwest and $2.62 in the Northwest. For 8 
ounce blocks, the U.S. price is $2.35, down $.05 from last week and down $.26 from a year 
ago. Blocks averaged $2.40 in the Southwest and $2.50 in the Northwest this week. In the 
West, wholesale prices are down $.0550 for process, but up $.0200 for cheddar block, 
cuts, and Monterey jack. Prices are unchanged for Swiss cuts. This week, a cooperative 
export assistance program accepted requests for 1.332 million pounds of cheese. In CME 
Group trading Wednesday, barrels closed at $1.4225, down $.1475 from a week ago and 
blocks closed at $1.5600, down $.1200. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6600-1.9175     
Cheddar 40# Block                            : 1.7750-2.2200     
Cheddar 10# Cuts                             : 1.9550-2.1750     
Monterey Jack 10#                            : 1.9650-2.1250     
Grade A Swiss Cuts 6 - 9#                    : 2.8375-3.2675     


       2015 U.S. Cheese Imports (USDA-FAS)
                  (Million Lb.)       % Change From   % of 
                                      1 Year Ago      Yearly Quota

Oct Quota Imports    22.8               +  3.2             7.6

Jan - Oct    
High Tier            32.2               + 27.9            N.A.
Quota Imports       175.1               + 21.8            58.6


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