MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  February 17, 2016 (REPORT 7)                       

WEST CHEESE                                                      

Western cheese production continues to move along at a steady pace. Domestic 
consumer demand has been good and has not dropped off much since the Super Bowl. 
Cheese blocks are moving, but the market for cheese barrels is still softer than 
for blocks. Manufacturers say cheese inventories are tending to be long for 
barrels at both the manufacturers' and secondary markets' warehouses. The degree 
to which this becomes problematic is dependent on the ability to find a home for 
the extra cheese. A few processors say the regular spot sale goes a long way 
toward easing some of the pressure. Cheese export opportunities are still 
sluggish. The DMN National Retail Report-Dairy for the week of February 12-18 
shows the U.S. weighted average advertised retail price for an 8 ounce pack of 
natural shredded cheese is $2.22, up $.04 from last week, but down $.25 from a 
year ago. Packs averaged $2.24 in the Southwest and $2.41 in the Northwest. For 8 
ounce blocks, the U.S. price is $2.22, up $.15 from last week, but down $.14 from 
a year ago. Blocks averaged $2.16 in the Southwest and $2.36 in the Northwest 
this week. In the West, wholesale prices are up $.0150 for process, cheddar 
block, cuts, and Monterey Jack. Prices are unchanged for Swiss cuts. This week, a 
cooperative export assistance program accepted requests for 1.613 million pounds 
of cheese. In CME Group trading Wednesday, barrels closed at $1.4700, up $.0050 
from a week ago and blocks closed at $1.4900, unchanged from last week. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5825-1.8400     
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#                    : 2.7300-3.1600     


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