MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  March 30, 2016 (REPORT 13)                         

WEST CHEESE                                                      

Western cheese production continues to be active and milk volumes are generally adequate 
for most processing needs. Domestic cheese demand is steady to lower. Retail and food 
service sales are strong, but have slowed slightly over the holiday weekend. Export deals 
continue to lag due to the strong U.S. dollar and robust international competition, but a 
few manufacturers have been able to move cheese with help from export assistance 
programs. This week, a cooperative export assistance program accepted requests for 2.216 
million pounds (1,005 metric tons) of cheese. So far this year, the program has assisted 
member cooperatives who have contracts to sell 12.209 million pounds of cheese in export 
markets. Western commercial cheese stocks are heavy. Industry contacts note a slight 
imbalance between cheese supply and demand, but are hopeful demand can pick up and keep 
pace with cheese production as the region enters into the spring flush. The DMN National 
Retail Report-Dairy for the week of March 25-31 shows the U.S. weighted average 
advertised retail price for an 8 ounce pack of natural shredded cheese is $2.28, up $.21 
from last week, but down $.14 from a year ago. Packs average $2.36 in the Southwest and 
$2.09 in the Northwest. For 8 ounce blocks, the U.S. price is $2.51, up $.31 from last 
week, and up $.04 from a year ago. Blocks average $2.51 in the Southwest and $2.07 in the 
Northwest this week. In the West, wholesale prices are up $.0200 for process, and up 
$.0025 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are 
unchanged. In CME Group trading Wednesday, barrels closed at $1.4525, up $.0025 from a 
week ago and blocks closed at $1.4600, down $.0300. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5750-1.8325     
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#                    : 2.6325-3.0625     

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