MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  October 12, 2016 (REPORT 41)                       

WEST CHEESE                                                      

INSERT WEEKLY REGIONAL COMMENTS

Western cheese production is steady. With ample supplies of milk and the holiday season 
ahead, manufacturers report being at or near full production. Inventories are a bit long, 
but processors expect the seasonal demand to help draw down stocks. Industry contacts 
suggest domestic retail demand is solid, and lower prices are prompting buyer interest. 
Swiss cheese sales, however, are slightly lower due to the lag in wholesale prices 
relative to Class III prices. A few manufacturers are shifting production runs to other 
natural cheeses, like muenster, Monterey Jack and cheddars. The DMN National Retail 
Report-Dairy for the week of October 7-13 shows the U.S. weighted average advertised 
retail price for an 8 ounce pack of natural shredded cheese is $2.25, down $.06 from last 
week, and down $.22 from a year ago. Packs average $2.34 in the Southwest and $1.59 in 
the Northwest. For 8 ounce blocks, the U.S. price is $2.26, down $.01 from last week, and 
down $.11 from a year ago. Blocks average $2.30 in the Southwest and $2.17 in the 
Northwest this week. In the West, wholesale prices are unchanged for process, and for 
cheddar block, cuts, and Monterey Jack. Swiss cut wholesale prices are up $.2250. This 
week, a cooperative export assistance program accepted 6 requests for 1.2 million pounds 
(542 metric tons) of cheese. So far this year, the program has assisted member 
cooperatives who have contracts to sell 40.4 million pounds of cheese in export markets. 
In CME Group trading Wednesday, barrels closed at $1.4575, up $.0075 from a week ago and 
blocks closed at $1.5175, down $.0150. 

WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.5875-1.8450     
Cheddar 40# Block                            : 1.6375-2.0825     
Cheddar 10# Cuts                             : 1.8175-2.0375     
Monterey Jack 10#                            : 1.8275-1.9875     
Grade A Swiss Cuts 6 - 9#                    : 2.7200-3.1500     


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