MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  August 03, 2016 (REPORT 31)                        

WEST CHEESE                                                      

Western cheese production is active and steady. Milk is generally available for 
most processing needs, with a few extra loads moving around the region to fill in 
any production voids. Although food service demand has eased a bit, buyers are 
making regular orders, but are not actively looking for extra cheese. Retail 
demand is solid while export markets continue to be weak. Some manufacturers are 
eager to move into the fall football/pizza season and are anticipating the 
increased demand will help reduce inventories of mozzarella and other cheeses 
used on pizzas. Inventories for both blocks and barrels are typically long with 
some age. The DMN National Retail Report-Dairy for the week of July 29-August 4 
shows the U.S. weighted average advertised retail price for an 8 ounce pack of 
natural shredded cheese is $2.22, down $.04 from last week, but up $.01 from a 
year ago. Packs average $2.17 in the Southwest and $2.28 in the Northwest. For 8 
ounce blocks, the U.S. price is $2.05, down $.08 from last week, and down $.17 
from a year ago. Blocks average $2.35 in the Southwest and $2.28 in the Northwest 
this week. In the West, wholesale prices are up $.0175 for process, and up $.0400 
for cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are 
unchanged. According to the California Department of Food and Agriculture, June 
2016 cheese production was 207.5 million pounds, up 2.3% from a year ago. 
California year-to-date cheese production through June is 1.252 billion pounds, 
up 1.6% from 2015 cheese production through June. The CME Group July 2016 monthly 
average price for barrels, $1.7363, is up from the June 2016 monthly average of 
$1.5301, and up from the monthly average of a year ago, $1.6313. Blocks' July 
average price, $1.6613, is up from the $1.5005 June monthly average, but down 
from $1.6659 one year ago. In CME Group trading Wednesday, barrels closed at 
$1.8000, up $.0250 from a week ago and blocks closed at $1.7600, up $.0400. 

                                                                 
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.8825-2.1400     
Cheddar 40# Block                            : 1.8250-2.2700     
Cheddar 10# Cuts                             : 2.0050-2.2250     
Monterey Jack 10#                            : 2.0150-2.1750     
Grade A Swiss Cuts 6 - 9#                    : 2.5425-2.9725     


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