MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  April 27, 2016 (REPORT 17)                         

WEST CHEESE                                                      

Western cheese vats remain full and a steady supply of milk is available for processing. 
Demand, especially for natural cheese varieties destined for retail and food service, is 
good and is helping reduce some of the inventory pressures being faced by manufacturers. 
The question is, 'will it be enough?' Cheese makers are using the demand to rotate and 
shift stocks in an effort to make room for the growing inventories. Industry contacts 
report the availability of storage is starting to become a concern. Some manufacturers 
are regularly asking end users about available warehouse space in an effort to find 
temporary homes for cheese. The DMN National Retail Report-Dairy for the week of April 
22-28 shows the U.S. weighted average advertised retail price for an 8 ounce pack of 
natural shredded cheese is $2.37, down $.13 from last week, and down $.17 from a year 
ago. Packs average $2.08 in the Southwest and $2.15 in the Northwest. For 8 ounce blocks, 
the U.S. price is $2.32, down $.01 from last week, and down $.06 from a year ago. Blocks 
average $1.99 in the Southwest and $2.02 in the Northwest this week. In the West, 
wholesale prices are up $.0050 for process, and up $.0025 for cheddar block, cuts, and 
Monterey Jack. Swiss cut wholesale prices are unchanged this week. This week, a 
cooperative export assistance program accepted requests for 2.465 million pounds (1,118 
metric tons) of cheese. So far this year, the program has assisted member cooperatives 
who have contracts to sell 17.108 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 
March 2016 were 1.191 billion pounds, up 1% from February 2016, and up 11% from March 
2015. American stocks were 14% more, other natural stocks were 7% more, and Swiss stocks 
were unchanged compared to last year. In the Mountain Region, American cheese stocks were 
17% more than one year earlier, and 8% more than one month earlier. Pacific Region 
American cheese stocks were 4% more than one year earlier, but 4% less than the previous 
month. Also in the Pacific Region, other natural cheese stocks were 7% below a year ago, 
but up 4% from a month ago. In CME Group trading Wednesday, barrels closed at $1.3800, 
down $.0700 from a week ago and blocks closed at $1.3625, down $.0775. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5350-1.7925     
Cheddar 40# Block                            : 1.5350-1.9800     
Cheddar 10# Cuts                             : 1.7150-1.9350     
Monterey Jack 10#                            : 1.7250-1.8850     
Grade A Swiss Cuts 6 - 9#                    : 2.5525-2.9825     

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