MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  February 24, 2016 (REPORT 8)                       

WEST CHEESE                                                      

Western cheese makers are actively producing cheese. Some manufacturers are 
finding milk intakes to be a little short of their needs to run at full 
production. They are reaching out for a few extra loads of milk to fill up cheese 
production schedules. Domestic cheese demand is still strong, especially for 
retail and cheese for pizza. Although the Super Bowl has passed, demand for pizza 
continues to be good through food service and schools. Inventories for cheddar 
varieties are trending steady to higher on lighter demand and a weak export 
market. A few end users report a lot of cheese being offered to buyers. The DMN 
National Retail Report-Dairy for the week of February 19-25 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded 
cheese is $2.36, up $.14 from last week, but down $.10 from a year ago. Packs 
averaged $2.44 in the Southwest and $2.45 in the Northwest. For 8 ounce blocks, 
the U.S. price is $2.32, up $.10 from last week, but down $.32 from a year ago. 
Blocks averaged $2.33 in the Southwest and $2.40 in the Northwest this week. In 
the West, wholesale prices are unchanged for process and Swiss Cuts. Cheddar 
block, cuts, and Monterey Jack prices are up $.0075. This week, a cooperative 
export assistance program accepted requests for 1.483 million pounds of cheese. 
According to the NASS Cold Storage report, U.S. stocks of cheese (total natural) 
at the end of January 2016 were 1.178 billion pounds, up 3% from December 2015, 
and up 12% from January 2015. American stocks were 13% more, other natural stocks 
were 12% more, and Swiss stocks were 8% more than last year. In the Mountain 
Region, American cheese stocks were 8% more than one year earlier, but 3% less 
than one month earlier. Pacific Region American cheese stocks were 6% more than 
one year earlier and 7% more than the previous month. Also in the Pacific Region, 
other natural cheese stocks were 2% below a year ago and unchanged from a month 
ago. In CME Group trading Wednesday, barrels closed at $1.4050, down $.0675 from 
a week ago and blocks closed at $1.4500, down $.0400. 

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


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