MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  May 18, 2016 (REPORT 20)                           

WEST CHEESE                                                      

Cheese production schedules are near full capacity. Western cheese makers report milk is 
in relatively good balance with processing needs. Pockets that are a little tight are 
finding extra milk within the region to round out production schedules. Strong domestic 
retail cheese demand is continuing while export opportunities are light. A few industry 
contacts are anticipating a slowdown of mozzarella demand as schools begin to close for 
summer breaks. In addition, demand for process cheese is starting to pick up a little as 
summer approaches. The market tone is a little unsettled. Cash cheese prices have slid to 
levels not seen in several years and inventories are still long. The DMN National Retail 
Report-Dairy for the week of May 13-19 shows the U.S. weighted average advertised retail 
price for an 8 ounce pack of natural shredded cheese is $2.18, down $.06 from last week, 
and down $.25 from a year ago. Packs average $2.05 in the Southwest and $2.50 in the 
Northwest. For 8 ounce blocks, the U.S. price is $2.12, up $.01 from last week, but down 
$.27 from a year ago. Blocks average $2.72 in the Southwest and $2.50 in the Northwest 
this week. In the West, wholesale prices are down $.0550 for process, and down $.0475 for 
cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are unchanged this 
week. In CME Group trading Wednesday, barrels closed at $1.3625, up $.0625 from a week 
ago and blocks closed at $1.3150, up $.0150. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.4000-1.6575     
Cheddar 40# Block                            : 1.3875-1.8325     
Cheddar 10# Cuts                             : 1.5675-1.7875     
Monterey Jack 10#                            : 1.5775-1.7375     
Grade A Swiss Cuts 6 - 9#                    : 2.5625-2.9925     

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

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

April Quota            16.3          +  7.6           5.5

TOTAL, JAN - APR
   High Tier           22.6          + 94.7           ...
   Quota               75.6          + 28.5          25.3

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