MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  January 07, 2015 (REPORT 1)                        

MIDWEST CHEESE:                                                  

With the holiday season over, cheesemakers are cautiously looking 
forward, wary of getting too far over the tips of their skis, but 
aware of the volume of milk flowing behind them which must be 
reckoned with.  The current situation is unusual for early January.  
Milk volume available to cheesemakers remains unusually high.  Cheese 
production is ahead of orders for many plants, due to higher than 
typical milk production for January seeking a home every day.  This 
week some milk spot loads in the Midwest moved at $6.00 to $6.50 
below class, depending on location and timing.  Obviously this is 
keeping chees production very high in many plants.  Sales are mixed.  
Some plants report slower sales while others report good sales.  Some 
potential buyers are reportedly pulling back in hopes of lower prices 
in coming weeks.  This is causing inventory levels to build in some 
plants beyond preferred levels.  At a cheese plant in the region 
which suffered a major fire loss leading to lost production, meeting 
previous sales commitments for coming weeks is a challenge.  
Wisconsin wholesale prices for 1,000 to 5,000 pound mixed lots of 
process cheese declined $.0175, Swiss declined $.0875 and the 
remaining varieties declined $.0275.  Dairy Products (NASS) reports 
total 2014 U.S. cumulative cheese production through November, 10.4 
billion pounds, leads last year through November by 2.8%. For various 
types of cheese, U.S. production through November compared with the 
same period last year includes: American, +1.9%; cheddar, +1.8%; 
total Italian, +4.8%; mozzarella, +6.6%; and other Italian cheese 
types, +6.1%.  Total U.S. cheese production for November, 948.7 
million pounds, was 3.3% below October but 2.9% above November last 
year.  In the Central region, cheese production for November 2014 
compared with November 2013 was: total cheese, +3.0%; American 
cheese, +4.5%; cheddar cheese, +5.1%; total Italian cheese, +3.3%; 
and mozzarella cheese, +1.7%.  CME Group trading closed Wednesday 
with barrels at $1.5450, up $.0150 from last Wednesday and blocks at 
$1.5700, up $.0175 from last Wednesday.                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5875-1.9475       
Brick And/Or Muenster 5#                   : 1.9100-2.3350       
Cheddar 40# Block                          : 1.6150-2.0325       
Monterey Jack 10#                          : 1.8850-2.0900       
Blue 5#                                    : 2.1775-3.1650       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7550-2.6500       
Grade A Swiss Cuts 6 - 9#                  : 3.6225-3.7400   



100C eric.graf@ams.usda.gov
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home