MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  January 06, 2016 (REPORT 1)                        

WEST CHEESE                                                      

With the major winter holidays now passed and many school sessions resuming, some additional milk 
is being diverted into bottling. However, milk is still readily available for processing. 
Manufacturers are choosing to make cheese with the extra milk. Cheese production is active. 
Although domestic cheese demand has remained relatively good, inventories are building. The DMN 
National Retail Report-Dairy for the week of January 1-7 shows the U.S. weighted average advertised 
retail price for an 8 ounce pack of natural shredded cheese is $2.24, down $.03 from last week, and 
down $.11 from a year ago. Packs averaged $2.21 in the Southwest and $2.10 in the Northwest. For 8 
ounce blocks, the U.S. price is $2.01, down $.18 from last week, and down $.50 from a year ago. 
Blocks averaged $2.22 in the Southwest and $1.96 in the Northwest this week. In the West, wholesale 
prices are up $.0575 for process, and up $.0400 for cheddar block, cuts, and Monterey jack. Prices 
are down $.0400 for Swiss cuts. Dairy Products (NASS) reports total 2015 U.S. cheese production, 
year to date through November, is 10.681 billion pounds, 2.3% above 2014. November 2015 U.S. total 
cheese production, 975.7 million pounds, is 2.2% below October this year. In the West, total cheese 
production for November 2015 was 410.8 million pounds, 0.7% less than last month. For total cheese 
production and various types of cheese, November 2015 U.S. and West cheese production compared to 
November 2014 is as follows:

		U.S.	West
Total Cheese	+0.6%	-3.3%
American	-0.3%	-3.7%
Cheddar		+2.0%	+2.2%
Total Italian	-0.5%	-5.6%
Mozzarella	-2.0%	-6.3%
Swiss		+5.9%	  ...

The CME Group December 2015 monthly average price for barrels, $1.4638, is down from the November 
monthly average of 1.5305, and down from the monthly average of a year ago, $1.5305. Blocks' 
December average price, $1.4616, is down from the $1.6176 November monthly average and down from 
$1.5938 one year ago. In CME Group trading Wednesday, barrels closed at $1.4800, unchanged from a 
week ago and blocks closed at $1.4700, up $.0200. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6000-1.8575     
Cheddar 40# Block                            : 1.5650-2.0100     
Cheddar 10# Cuts                             : 1.7450-1.9650     
Monterey Jack 10#                            : 1.7550-1.9150     
Grade A Swiss Cuts 6 - 9#                    : 2.7475-3.1775     


2015 U.S. Cheese and Curd Exports (USDA-FAS)

                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

November Total       50.5            - 7

TOTAL, JAN - NOV    643.6            - 14

 1 Mexico           181.4            + 12
 2 South Korea      117.6            - 19
 3 Japan             70.3            - 39
 4 Australia         35.6            - 6
 5 Canada            26.3            - 8


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