MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  February 03, 2016 (REPORT 5)                       

WEST CHEESE                                                      

Plenty of milk for processing means western cheese production is still active. Domestic 
demand is good, especially in retail and food service venues. And industry contacts 
report sales from the Super Bowl effect have been decent, but are now ending for another 
year. Although overall cheese demand has been good, industry contacts still say supply 
has outpaced demand. Without many export opportunities, inventories are building 
slightly. The cheese trade imbalance and heavy U.S. cheese inventories are starting to 
weigh on the mind of a few cheese makers. There is some concern that long barrel and 
block cheese inventories are becoming burdensome and market factors may push cheese 
prices lower, especially if domestic demand cannot maintain its current pace. The DMN 
National Retail Report-Dairy for the week of January 29-February 4 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded cheese 
is $2.34, down $.05 from last week, and down $.22 from a year ago. Packs averaged $2.24 
in the Southwest and $2.59 in the Northwest. For 8 ounce blocks, the U.S. price is $2.20, 
down $.13 from last week, and down $.30 from a year ago. Blocks averaged $2.05 in the 
Southwest and $2.27 in the Northwest this week. In the West, wholesale prices are down 
$.0475 for process, and down $.0175 for cheddar block, cuts, and Monterey jack. Prices 
are unchanged for Swiss cuts. This week, a cooperative export assistance program accepted 
requests for 509,268 pounds of cheese. Dairy Products (NASS) reports total 2015 U.S. 
cheese production, year to date through December, is 11.722 billion pounds, 2.4% above 
2014. December 2015 U.S. total cheese production, 1.022 billion pounds, is 2.8% above 
November this year. In the West, total cheese production for December 2015 was 438.0 
million pounds, 2.4% more than last month. For total cheese production and various types 
of cheese, December 2015 U.S. and West cheese production compared to December 2014 is as 
follows:

	U.S.	West
Total Cheese	+1.2%	+0.8%
American	+0.7%	-1.3%
Cheddar	+1.5%	+2.7%
Total Italian	+3.1%	+3.4%
Mozzarella	+2.6%	+1.6%
Swiss	+1.8%	 ...

The CME Group January 2016 monthly average price for barrels, $1.4842, is up from the 
December 2015 monthly average of 1.4638, but down from the monthly average of a year ago, 
$1.4995. Blocks' January average price, $1.4757, is up from the $1.4616 December monthly 
average, but down from $1.5218 one year ago.In CME Group trading Wednesday, barrels 
closed at $1.4500, up $.0200 from a week ago and blocks closed at $1.4700, up $.0100. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5425-1.8000     
Cheddar 40# Block                            : 1.5700-2.0150     
Cheddar 10# Cuts                             : 1.7500-1.9700     
Monterey Jack 10#                            : 1.7600-1.9200     
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