MD_DA840 DA MD DA840 Cheese - West MADISON, WI. March 09, 2016 (REPORT 10) WEST CHEESE Western cheese makers are seeing increases in milk intakes, and as a result, steady to higher cheese production. A few processors report sales have slowed somewhat as buyers pause to see what direction cheese market prices will take, and whether U.S. consumers continue to eat cheese at high rates like last year. End users are fielding a lot of offers from cheese makers, but have a desire to work through their own inventories and draw those stocks down to more comfortable levels. Most processors note inventories continue to be long, but a few say stocks of certain cheese varieties, such as cheddar blocks, have plateaued. While export opportunities continue to be somewhat limited, domestic demand is still pulling cheese out of warehouses. The DMN National Retail Report-Dairy for the week of March 4-10 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.28, up $.02 from last week, but down $.39 from a year ago. Packs average $2.21 in the Southwest and $2.16 in the Northwest. For 8 ounce blocks, the U.S. price is $2.29, up $.04 from last week, but down $.04 from a year ago. Blocks average $2.26 in the Southwest and $2.24 in the Northwest this week. In the West, wholesale prices are up $.0075 for process, and up $.0150 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are down $.0975. This week, a cooperative export assistance program accepted requests for 1.581 million pounds (717 metric tons) pounds of cheese. Dairy Products (NASS) reports January 2016 U.S. total cheese production, 1.003 billion pounds, is 2.6% below December 2015. In the West, total cheese production for January 2016 was 429.4 million pounds, 2.0% less than December 2015. For total cheese production and various types of cheese, January 2016 U.S. and West cheese production compared to January 2015 are as follows: U.S. West Total Cheese + 2.6% +1.3% American + 0.9% -0.3% Cheddar + 1.4% +2.1% Total Italian + 2.2% ... Mozzarella + 0.3% -2.1% Swiss +12.8% ... The CME Group February 2016 monthly average price for barrels, $1.4573, is down from the January 2015 monthly average of 1.4842, and down from the monthly average of a year ago, $1.4849. Blocks' February average price, $1.4744, is down from the $1.4757 January monthly average, and down from $1.5382 one year ago. In CME Group trading Wednesday, barrels closed at $1.4650, up $.0375 from a week ago and blocks closed at $1.5100, up $.0600. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.5550-1.8125 Cheddar 40# Block : 1.5850-2.0300 Cheddar 10# Cuts : 1.7650-1.9850 Monterey Jack 10# : 1.7750-1.9350 Grade A Swiss Cuts 6 - 9# : 2.6325-3.0625 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago January Total 48.4 - 8 TOTAL, JAN 48.4 - 8 1 Mexico 16.6 + 30 2 South Korea 6.1 - 57 3 Japan 5.8 - 16 4 Australia 3.0 + 47 5 Chile 1.7 + 48 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