MD_DA840 DA MD DA840 Cheese - West MADISON, WI. April 06, 2016 (REPORT 14) WEST CHEESE Western cheese makers say milk supplies are adequate for almost all of their processing needs. Cheese production continues to increase seasonally. A few cheese makers say mozzarella and provolone production is steady to higher with strong sales into food service. Some manufacturers note a slight decrease in commercial cheese demand. Cheese is moving, but it takes a little more work and in some cases price concessions to complete the transactions. End users seem to want to reduce their own inventories, rather than take on more cheese. Industry contacts say there is still a lot of cheese available. Barrel cheese stocks are heavy. While inventories of blocks of cheese are also long, they are more comfortable than barrels. The market tone is unsettled and a little bearish. The DMN National Retail Report-Dairy for the week of April 1-7 shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural shredded cheese is $2.36, up $.08 from last week, but down $.03 from a year ago. Packs average $2.04 in the Southwest and $1.77 in the Northwest. For 8 ounce blocks, the U.S. price is $2.15, down $.36 from last week, and down $.16 from a year ago. Blocks average $2.22 in the Southwest and $1.48 in the Northwest this week. In the West, wholesale prices are down $.0175 for process, and down $.0225 for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are down $.0800 this week. This week, a cooperative export assistance program accepted requests for 152,119 pounds (69 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 12.361 million pounds of cheese in export markets. Dairy Products (NASS) reports total 2015 U.S. cheese production, year to date through February, is 1.959 billion pounds, 5.1% above 2015. February 2016 U.S. total cheese production (unadjusted for the extra production day in February 2016), 956.2 million pounds, is 4.7% below January 2016. In the West, total cheese production for February 2016 was 419.0 million pounds, 2.1% less than January. For total cheese production and various types of cheese, February 2016 U.S. and West cheese production percent changes compared to February 2015 are as follows: U.S. West Total Cheese + 7.8% + 9.0% American + 4.9% + 2.9% Cheddar + 0.7% - 4.2% Total Italian + 9.2% +14.4% Mozzarella +10.0% +15.2% Swiss + 2.6% ... The CME Group March 2016 monthly average price for barrels, $1.4530, is down from the February 2016 monthly average of 1.4573, and down from the monthly average of a year ago, $1.5290. Blocks' March average price, $1.4877, is up from the $1.4744 February monthly average, but down from $1.5549 one year ago. In CME Group trading Wednesday, barrels closed at $1.4425, down $.0100 from a week ago and blocks closed at $1.4325, down $.0275. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process 5# Loaf : 1.5575-1.8150 Cheddar 40# Block : 1.5750-2.0200 Cheddar 10# Cuts : 1.7550-1.9750 Monterey Jack 10# : 1.7650-1.9250 Grade A Swiss Cuts 6 - 9# : 2.5525-2.9825 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago February Total 53.8 - 17 TOTAL, JAN - FEB 102.2 - 13 1 Mexico 34.9 + 12 2 South Korea 14.3 - 47 3 Japan 11.0 - 27 4 Australia 5.4 - 4 5 Chile 3.4 + 10 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