MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  March 23, 2016 (REPORT 12)                         

WEST CHEESE                                                      

Western cheese manufacturers continue to report good retail demand for natural 
cheese. However, supplies are outpacing demand for process cheese and cheese entering 
manufacturing lines. Many industry contacts perceive cheese inventories are already 
long and growing. Cheese production is very active. Some additional milk is being 
diverted into cheese vats as area educational institutions go on spring break. 
Currently, milk supplies are in fairly good balance. But as the region more fully 
enters into spring flush, some industry contacts are concerned that growing milk 
intakes could further translate into heavy cheese inventories. The DMN National Retail 
Report-Dairy for the week of March 18-24 shows the U.S. weighted average advertised 
retail price for an 8 ounce pack of natural shredded cheese is $2.07, down $.22 from last 
week. Packs average $2.32 in the Southwest and $1.99 in the Northwest. For 8 ounce 
blocks, the U.S. price is $2.20, down $.23 from last week. Blocks average $2.38 in the 
Southwest and $1.94 in the Northwest this week. In the West, wholesale prices are down 
$.0225 for process, and down $.0250 for cheddar block, cuts, and Monterey Jack. Swiss cut 
wholesale prices are unchanged. This week, a cooperative export assistance program 
accepted requests for 178,574 pounds (81 metric tons) of cheese. So far this year, the 
program has assisted member cooperatives who have contracts to sell 9.994 million pounds 
of cheese in export markets. According to the NASS Cold Storage report, U.S. stocks of 
cheese (total natural) at the end of February 2016 were 1.182 billion pounds, unchanged 
from January 2016, and up 11% from February 2015. American stocks were 11% more, other 
natural stocks were 11% more, and Swiss stocks were 5% more than last year. In the 
Mountain Region, American cheese stocks were 4% more than one year earlier, but 3% less 
than one month earlier. Pacific Region American cheese stocks were 1% less than one year 
earlier and 4% less than the previous month. Also in the Pacific Region, other natural 
cheese stocks were 1% below a year ago but up 1% from a month ago. In CME Group trading 
Wednesday, barrels closed at $1.4500, up $.0200 from a week ago and blocks closed at 
$1.4900, up $.0025. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5550-1.8125     
Cheddar 40# Block                            : 1.5950-2.0400     
Cheddar 10# Cuts                             : 1.7750-1.9950     
Monterey Jack 10#                            : 1.7850-1.9450     
Grade A Swiss Cuts 6 - 9#                    : 2.6325-3.0625     

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

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


February Quota    	 18.9          + 29.9           6.3

TOTAL, JAN - FEB
   High Tier      	  7.1          + 43.4           ...
   Quota          	 38.0          + 48.4          12.7

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