MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  March 2, 2016 (REPORT 9)                       

WEST CHEESE                                                      

Although inventories, especially for cheese barrels and blocks, are heavy and trending 
longer, western cheese production remains steady and active. Milk is in relatively good 
balance and adequate for most processing needs. Most cheese makers have not been 
compelled to alter their annual cheese production plans for their facilities. The 
processors are producing cheese in accordance to those plans. Like a broken record, 
domestic cheese demand continues to be solid, while export opportunities are limited. 
Retail and food service leads the way for cheese sales activity. Manufacturers are making 
a lot of offers to end users to try to clear inventories. The DMN National Retail Report-
Dairy for the week of February 26-March 3 shows the U.S. weighted average advertised 
retail price for an 8 ounce pack of natural shredded cheese is $2.26, down $.10 from last 
week, and down $.15 from a year ago. Packs average $1.86 in the Southwest and $2.24 in 
the Northwest. For 8 ounce blocks, the U.S. price is $2.25, down $.07 from last week, but 
up $.04 from a year ago. Blocks average $1.80 in the Southwest and $2.01 in the Northwest 
this week. In the West, wholesale prices are down $.0350 for process. Cheddar block, 
cuts, and Monterey Jack prices are down $.0275. Swiss cut wholesale prices are unchanged. 
This week, a cooperative export assistance program accepted requests for 747,367 
pounds of cheese. In CME Group trading Wednesday, barrels closed at $1.4275, up $.0225 
from a week ago and blocks closed at $1.4500, unchanged. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5475-1.8050     
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#                    : 2.7300-3.1600     


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