MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  December 23, 2015 (REPORT 51)                      

WEST CHEESE                                                      

Western cheese production is steady to higher. Domestic retail and food service sales 
have been good, but have slackened slightly as the holidays draw near. A few 
manufacturers are trying to get remaining annual contracts in place before the end of the 
year. Milk is readily available for processing and many cheesemakers expect to run at 
full production over the next two weeks. Industry contacts report a lot of cheese is 
available, especially cheese used for further processing. The DMN National Retail Report-
Dairy for the week of December 18-24 shows the U.S. weighted average advertised retail 
price for an 8 ounce pack of natural shredded cheese is $2.27, up $.07 from last week, 
but down $.18 from a year ago. Packs averaged $2.31 in the Southwest and $2.38 in the 
Northwest. For 8 ounce blocks, the U.S. price is $2.22, down $.07 from last week, and 
down $.40 from a year ago. Blocks averaged $2.37 in the Southwest and $2.38 in the 
Northwest this week. In the West, wholesale prices are down $.0475 for process, cheddar 
block, cuts, and Monterey Jack. Prices are unchanged for Swiss cuts. This week, a 
cooperative export assistance program accepted requests for 3.515 million pounds of 
cheese. According to the NASS Cold Storage report, U.S. stocks of cheese (total natural) 
at the end of November 2015 were 1.146 billion pounds, unchanged from October 2015, but 
up 13% from November 2014. American stocks were 10% more, other natural stocks were 19% 
more, but Swiss stocks were 7% less than last year. In the Mountain Region, American 
cheese stocks were 23% more than one year earlier and 6% higher than one month earlier. 
Pacific Region American cheese stocks were 3% less than one year earlier and unchanged 
from the previous month. Also in the Pacific Region, other natural cheese stocks were 14% 
above a year ago but 1% below a month ago. In CME Group trading Wednesday, barrels closed 
at $1.4200, up $.0100 from a week ago and blocks closed at $1.4000, down $.0100. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5425-1.8000     
Cheddar 40# Block                            : 1.5400-1.9850     
Cheddar 10# Cuts                             : 1.7200-1.9400     
Monterey Jack 10#                            : 1.7300-1.8900     
Grade A Swiss Cuts 6 - 9#                    : 2.7875-3.2175     


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