MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  May 25, 2016 (REPORT 21)                           

WEST CHEESE                                                      

Western cheese makers report retail sales are still strong and cheese is moving well 
through ongoing contracts. Demand for snack cheese items and mozzarella has slowed 
slightly as more schools end their spring semesters. Production schedules are running 
full, but a few cheese makers are looking for ways to curtail cheese production. 
Inventories for most cheese varieties are long and manufacturers are seeking ways to 
control inventories. A few end users report cheese manufacturers are sending them 
multiple offers for all types and all sizes of cheese. Some industry contacts suggest 
there are significant volumes of older blocks and barrels that are getting more difficult 
to move. The DMN National Retail Report-Dairy for the week of May 20-26 shows the U.S. 
weighted average advertised retail price for an 8 ounce pack of natural shredded cheese 
is $2.23, up $.05 from last week, but down $.16 from a year ago. Packs average $2.19 in 
the Southwest and $2.41 in the Northwest. For 8 ounce blocks, the U.S. price is $2.32, up 
$.20 from last week, and up $.02 from a year ago. Blocks average $2.48 in the Southwest 
and $3.46 in the Northwest this week. In the West, wholesale prices are up $.0625 for 
process, and up $.0225 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 2.776 million pounds (1,259 metric tons) of cheese. So far this 
year, the program has assisted member cooperatives who have contracts to sell 23.0 
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 April 2016 were 1.214 billion pounds, 
up 2% from March 2016, and up 12% from April 2015. American stocks were 15% more, other 
natural stocks were 8% more, and Swiss stocks were up 2% compared to last year. In the 
Mountain Region, American cheese stocks were 26% more than one year earlier, and 2% more 
than one month earlier. Pacific Region American cheese stocks were 5% more than one year 
earlier, but 1% less than the previous month. Also in the Pacific Region, other natural 
cheese stocks were 9% above a year ago, and up 2% from a month ago. In CME Group trading 
Wednesday, barrels closed at $1.3925, up $.0300 from a week ago and blocks closed at 
$1.3400, up $.0250. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.4625-1.7200     
Cheddar 40# Block                            : 1.4100-1.8550     
Cheddar 10# Cuts                             : 1.5900-1.8100     
Monterey Jack 10#                            : 1.6000-1.7600     
Grade A Swiss Cuts 6 - 9#                    : 2.5625-2.9925     


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