MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  January 20, 2016 (REPORT 3)                        

WEST CHEESE                                                      

Readily available milk is pushing western cheese production. Cheese making is active 
as processors work to use the available milk. Although the overall market tone 
suggests weakness, some manufacturers are encouraged by several indicators. With 
export opportunities being limited this last year, cheese makers have relied on 
strong domestic consumer demand to help support the market. Cheese marketers are 
encouraged by the continuing good retail demand, which appears to be holding up 
through the Super Bowl buying period. In addition, a few manufacturers have seen 
small increases in cheese export activity and demand for cheese barrels. These 
processors are hoping this is a sign of improvements to come. Cheese supplies are 
exceeding demand and adding to already long inventories. Some growth of inventories 
is expected at this time of year, and processors are watching the market closely to 
manage stocks. The DMN National Retail Report-Dairy for the week of January 15-21 shows 
the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.51, up $.34 from last week, but down $.03 from a year ago. Packs averaged 
$2.39 in the Southwest and $2.46 in the Northwest. For 8 ounce blocks, the U.S. price is 
$2.35, up $.16 from last week, and up $.02 from a year ago. Blocks averaged $2.30 in the 
Southwest and $2.38 in the Northwest this week. In the West, wholesale prices are up 
$.0225 for process, and up $.0075 for cheddar block, cuts, and Monterey jack. Prices are 
unchanged for Swiss cuts. This week, a cooperative export assistance program accepted 
requests for 766,547 million pounds of cheese. In CME Group trading Wednesday, barrels 
closed at $1.4950, down $.0250 from a week ago and blocks closed at $1.4800, down $.0150. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6375-1.8950     
Cheddar 40# Block                            : 1.5975-2.0425     
Cheddar 10# Cuts                             : 1.7775-1.9975     
Monterey Jack 10#                            : 1.7875-1.9475     
Grade A Swiss Cuts 6 - 9#                    : 2.7475-3.1775     


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