MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  November 24, 2015 (REPORT 47)                      

WEST CHEESE                                                      

Western milk intakes are strong and cheese producers are actively absorbing available 
milk supplies. Retail and food service demand remains good, however process cheese demand 
is lighter. Inventories for barrels and blocks are long. Some manufacturers are 
aggressively working to sell their barrel stocks before they age and are more willing to 
hold blocks. Cheese makers are watching the wide price spread between blocks and barrels 
closely. Many manufacturers are concerned about a possible downward correction in the 
block price. The DMN National Retail Report - Dairy for the week of November 20-26 shows 
the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.29, down $.10 from last week and down $.27 from a year ago. Packs averaged 
$2.38 in both the Southwest and in the Northwest. For 8 ounce blocks, the U.S. price is 
$2.28, down $.07 from last week and down $.33 from a year ago. Blocks averaged $2.39 in 
the Southwest and $2.81 in the Northwest this week. In the West, wholesale prices are 
down $.1025 for process, and down $.0900 for cheddar block, cuts, and Monterey jack. 
Prices are unchanged for Swiss cuts. According to the NASS Cold Storage report, U.S. 
stocks of cheese (total natural) at the end of October 2015 were 1.149 billion pounds, 
unchanged from September 2015 but up 15% from October 2014. American stocks were 12% 
more, other natural stocks were 24% more, but Swiss stocks were 16% less than last year. 
In the Mountain Region, American cheese stocks were 19% more than one year earlier but 6% 
lower than one month earlier. Pacific Region American cheese stocks were 11% more than 
one year earlier and 1% more than a month before. Also in the Pacific Region, other 
natural cheese stocks were 40% above a year ago but 2% below a month ago. In CME Group 
trading Tuesday, barrels closed at $1.5325, up $.0825 from a week ago and blocks closed 
at $1.5700, unchanged. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5575-1.8150     
Cheddar 40# Block                            : 1.6850-2.1300     
Cheddar 10# Cuts                             : 1.8650-2.0850     
Monterey Jack 10#                            : 1.8750-2.0350     
Grade A Swiss Cuts 6 - 9#                    : 2.8375-3.2675     

1200CT 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