MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  January 13, 2016 (REPORT 2)                        

WEST CHEESE                                                      

Western cheese production is mostly steady and active. Readily available milk supplies 
are keeping manufacturers busy. Cut and wrap operators continue to see good retail 
demand. Requests for mozzarella and other cheese for pizzas is steady in advance of the 
Super Bowl and football playoffs. Inventories are long for cheese barrels, and to a 
lesser extent blocks. Storage availability is becoming an issue in some locations. Cheese 
production in New Mexico is returning to normal after winter storm Goliath. The impact on 
area milk production will take a long time to assess. New Mexico cheese plants in the 
epicenter of the storm are receiving milk from across the region to make up for any 
shortfalls. The DMN National Retail Report-Dairy for the week of January 8-14 shows the 
U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.17, down $.07 from last week, and down $.37 from a year ago. Packs averaged 
$2.59 in the Southwest and $2.34 in the Northwest. For 8 ounce blocks, the U.S. price is 
$2.19, up $.18 from last week, but down $.14 from a year ago. Blocks averaged $2.60 in 
the Southwest and $2.36 in the Northwest this week. In the West, wholesale prices are up 
$.0150 for process, and up $.0250 for cheddar block, cuts, and Monterey jack. Prices are 
unchanged for Swiss cuts. This week, a cooperative export assistance program accepted 
requests for 2.090 million pounds of cheese. In CME Group trading Wednesday, barrels 
closed at $1.5200, up $.0400 from a week ago and blocks closed at $1.4950, up $.0250. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6150-1.8725     
Cheddar 40# Block                            : 1.5900-2.0350     
Cheddar 10# Cuts                             : 1.7700-1.9900     
Monterey Jack 10#                            : 1.7800-1.9400     
Grade A Swiss Cuts 6 - 9#                    : 2.7475-3.1775     


       2015 U.S. Cheese Imports (USDA-FAS)

                 2015 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota

December Quota    	 21.8          - 25.1           7.3

TOTAL, JAN - DEC
    High Tier      	 42.0          + 41.1           ...
    Quota          	224.8          + 12.3          75.2


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