MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  February 10, 2016 (REPORT 6)                       

WEST CHEESE                                                      

Western cheese production is active and stable. Although most cheese makers say they have plenty of 
milk for all their processing needs, a few industry contacts report some temporary pockets of 
tightness for milk supplies. The occasional instances of this occurring are in areas with large 
concentrations of processing of other seasonal dairy products. Cheese demand is mostly steady. Any 
Super Bowl effect has now ended and cheese makers are hoping domestic demand can continue to be 
strong. Concern is building somewhat over the limited amount of export opportunities and heavy 
cheese inventories. The DMN National Retail Report-Dairy for the week of February 5-11 shows the 
U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is 
$2.18, down $.16 from last week, and down $.34 from a year ago. Packs averaged $2.31 in the 
Southwest and $2.35 in the Northwest. For 8 ounce blocks, the U.S. price is $2.07, down $.13 from 
last week, and down $.40 from a year ago. Blocks averaged $2.12 in the Southwest and $2.76 in the 
Northwest this week. In the West, wholesale prices are up $.0250 for process, and up $.0050 for 
cheddar block, cuts, and Monterey jack. Prices are down $.0175 for Swiss cuts. This week, a 
cooperative export assistance program accepted requests for 101,413 pounds of cheese. In CME Group 
trading Wednesday, barrels closed at $1.4650, up $.0150 from a week ago and blocks closed at 
$1.4900, up $.0200. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5675-1.8250     
Cheddar 40# Block                            : 1.5750-2.0200     
Cheddar 10# Cuts                             : 1.7550-1.9750     
Monterey Jack 10#                            : 1.7650-1.9250     
Grade A Swiss Cuts 6 - 9#                    : 2.7300-3.1600     


        2016 U.S. Cheese Imports (USDA-FAS)

                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota

TOTAL, JANUARY
    High Tier      	  3.1          + 60.1           ...
    Quota          	 19.0          + 88.0           6.4


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

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

December Total       54.6            -  9

TOTAL, JAN - DEC    698.2            - 14

 1 Mexico           200.3            + 10
 2 South Korea      124.7            - 20
 3 Japan             75.7            - 39
 4 Australia         38.2            -  3
 5 Canada            29.0            -  6

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