MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  August 24, 2016 (REPORT 34)                        

WEST CHEESE                                                      

Industry contacts say Western cheese makers are trying to keep their production schedules 
full. Although milk is generally available within the immediate area, a few processors 
have had to reach a little further to get extra spot loads of milk needed to round out 
production. Some manufacturers note domestic retail and food service demand has eased 
back a little for American style cheeses, but mozzarella demand is picking up. Cheese 
marketers continue to report U.S. cheese is facing strong competition in international 
markets, mostly based on pricing differences. Industry inventories remain long for many 
varieties of cheese. Some contacts suggest cheese market prices need to be reset lower in 
order for significant volumes of cheese to clear. The DMN National Retail Report-Dairy 
for the week of August 19-25 shows the U.S. weighted average advertised retail price for 
an 8 ounce pack of natural shredded cheese is $2.29, up $.04 from last week, but down 
$.05 from a year ago. Packs average $1.96 in the Southwest and 2.44 in the Northwest. For 
8 ounce blocks, the U.S. price is $2.12, down $.05 from last week, and down $.19 from a 
year ago. Blocks average $1.58 in the Southwest and $1.73 in the Northwest this week. In 
the West, wholesale prices are down $.0125 for process, but up $.0250 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 July 2016 were 
1.276 billion pounds, up 2% from June 2016 holdings, and up 10% from July 2015. American 
stocks were 10% more, other natural stocks were 9% more, and Swiss stocks were up 19% 
compared to last year. In the Mountain Region, American cheese stocks were 14% lower than 
one year earlier, but 4% more than one month earlier. Pacific Region American cheese 
stocks were 5% more than one year earlier, and unchanged from the previous month. Also in 
the Pacific Region, other natural cheese stocks were 16% above a year ago, and up 1% from 
a month ago. In CME Group trading Wednesday, barrels closed at $1.7800, down $.0850 from 
a week ago and blocks closed at $1.7800, down $.0400. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.9725-2.2300     
Cheddar 40# Block                            : 1.9250-2.3700     
Cheddar 10# Cuts                             : 2.1050-2.3250     
Monterey Jack 10#                            : 2.1150-2.2750     
Grade A Swiss Cuts 6 - 9#                    : 2.4425-2.8725     

1530CT Mike.Bandli@ams.usda.gov 605-557-7010
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