MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  July 27, 2016 (REPORT 30)                          

WEST CHEESE                                                      

Fluid milk intake continues to be fairly flat with the exception of minor seasonal 
fluctuations. Western cheese manufacturers' cheese production is steady as the producers 
look to balance the market's demand. Domestic demand is good for most types of cheese. 
Retail cut and wrap cheese sales are solid. As demand for cheese is steady, especially in 
fresh cheese barrels, the remaining cheese in cold storage remains stable with some age. 
While the cheese in cold storage are getting some age, other cheese in inventories are 
expecting to be moved due to prior contractual orders. On the other hand of demand, 
international demand remains low as not too much opportunity is available for exporting 
at the current prices. The DMN National Retail Report-Dairy for the week of July 22-28 
shows the U.S. weighted average advertised retail price for an 8 ounce pack of natural 
shredded cheese is $2.26, up $.07 from last week, but down $.17 from a year ago. Packs 
average $2.32 in the Southwest and $2.31 in the Northwest. For 8 ounce blocks, the U.S. 
price is $2.13, down $.06 from last week, and down $.14 from a year ago. Blocks average 
$2.50 in the Southwest and $2.33 in the Northwest this week. In the West, wholesale 
prices are up $.0275 for process, and up $.0400 for cheddar block, cuts, and Monterey 
Jack. Swiss cut wholesale prices are unchanged. According to the NASS Cold Storage 
report, U.S. stocks of cheese (total natural) at the end of June 2016 were 1.252 billion 
pounds, unchanged from May 2016 holdings, and up 10% from June 2015. American stocks were 
11% more, other natural stocks were 8% more, and Swiss stocks were up 17% compared to 
last year. In the Mountain Region, American cheese stocks were 11% lower than one year 
earlier, and 7% less than one month earlier. Pacific Region American cheese stocks were 
7% more than one year earlier, and 1% more than the previous month. Also in the Pacific 
Region, other natural cheese stocks were 9% above a year ago, and up 1% from a month ago. 
Mountain Region other natural cheese stocks were up 30% from one year ago, and 53% more 
than last month. This week, a cooperative export assistance program accepted three 
requests for 90,390 pounds (41 metric tons) of cheese. So far this year, the program has 
assisted member cooperatives who have contracts to sell 29.916 million pounds of cheese 
in export markets. In CME Group trading Wednesday, barrels closed at $1.7750, up $.0200 
from a week ago and blocks closed at $1.7200, up $.0400. 
                                                              
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.8650-2.1225     
Cheddar 40# Block                            : 1.7850-2.2300     
Cheddar 10# Cuts                             : 1.9650-2.1850     
Monterey Jack 10#                            : 1.9750-2.1350     
Grade A Swiss Cuts 6 - 9#                    : 2.5425-2.9725     


1530CT Mike.bandli@ams.usda.gov 608.557.7010; Daniel.Kim@ams.usda.gov
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