MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  May 04, 2016 (REPORT 18)                           

WEST CHEESE                                                      

Western cheese production continues to be active. Milk is readily available and many 
cheese manufacturers are running full production schedules. Late last week however, a 
regional power outage disrupted milk flow and cheese production at a few southwestern 
dairy facilities. Dairy processing resumed normal activities early this week. Cheese 
inventories are long, especially for commercial cheese. In some cases, available storage 
space is becoming harder to find. However, demand is steady. Cheese, both retail and 
commercial, is moving at current market prices. Industry contacts say buyers are content 
with commodity cheese prices close to CME Group bases. Some cheese is clearing to export 
channels, albeit at lower levels than the last year. The DMN National Retail Report-Dairy 
for the week of April 29-May 5 shows the U.S. weighted average advertised retail price 
for an 8 ounce pack of natural shredded cheese is $2.44, up $.07 from last week, and up 
$.10 from a year ago. Packs average $2.29 in the Southwest and $2.61 in the Northwest. 
For 8 ounce blocks, the U.S. price is $2.32, unchanged from last week, and up $.05 from a 
year ago. Blocks average $2.11 in the Southwest and $2.84 in the Northwest this week. In 
the West, wholesale prices are down $.0250 for process, and down $.0475 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 1.232 million pounds 
(559 metric tons) of cheese. So far this year, the program has assisted member 
cooperatives who have contracts to sell 18.340 million pounds of cheese in export 
markets. The CME Group April 2016 monthly average price for barrels, $1.4231, is down 
from the March 2016 monthly average of 1.4530, and down from the monthly average of a 
year ago, $1.6135. Blocks' April average price, $1.4194, is down from the $1.4877 March 
monthly average, and down from $1.5890 one year ago. In CME Group trading Wednesday, 
barrels closed at $1.3525, down $.0275 from a week ago and blocks closed at $1.3250, down 
$.0375. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5100-1.7675     
Cheddar 40# Block                            : 1.4875-1.9325     
Cheddar 10# Cuts                             : 1.6675-1.8875     
Monterey Jack 10#                            : 1.6775-1.8375     
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

March Total          56.2            - 26

TOTAL, JAN - MAR    158.4            - 18
 1 Mexico            54.8            + 10
 2 South Korea       21.6            - 52
 3 Japan             18.3            - 20
 4 Australia          7.8            - 32
 5 Canada             5.6            - 16


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