MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  December 2, 2015 (REPORT 48)                      

WEST CHEESE                                                      

Western cheese makers continue to see good domestic retail and food service demand for 
natural cheeses. Some manufacturers say orders for holiday goods are also quite strong. 
Cheese production is active as processors use available milk to run at or near full 
schedules. A few manufacturers are buying spot loads of milk in order to fill production 
runs. Extra loads of milk are generally available at or slightly above Class. However, 
some industry contacts say cheddar production is overwhelming the demand for cheese 
blocks and barrels. Inventories for cheese barrels are heavy, and although cheddar blocks 
may not be as plentiful, they are also long. Manufacturers are concerned that weak 
international sales, generally lighter demand for process cheese and increases in 
imported milk solids used in process cheese production may push cheese prices downward. 
The DMN National Retail Report-Dairy for the week of November 27-December 3 shows the 
U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.30, up $.01 from last week, but down $.20 from a year ago. Packs averaged 
$2.27 in the Southwest and $2.00 in the Northwest. For 8 ounce blocks, the U.S. price is 
$2.33, up $.05 from last week, but down $.22 from a year ago. Blocks averaged $2.19 in 
the Southwest. No advertised prices were reported in the Northwest this week. In the 
West, wholesale prices are up $.0725 for process, and unchanged for cheddar block, cuts, 
Monterey jack and Swiss cuts. In CME Group trading Wednesday, barrels closed at $1.4950, 
down $.0550 from a week ago and blocks closed at $1.5250, down $.0550. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6300-1.8875     
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     

Dairy Market News Reporting Change Notice
Upon the conclusion of the October 2015 industry comment period and a review of industry 
responses, Dairy Market News (DMN) is updating the Dairy Market News Working Guidelines, 
effective Report 1, January 2016. The updates will 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. 

Link to current and updated DMN working guidelines:
http://www.ams.usda.gov/market-news/individual-dairy-market-news-commodity-reports

December 1, 2015


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