MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest  

REISSUED TO CORRECT LOWER RANGE PRICE OF WISCONSIN WHOLESALE SELLING 
PRICE OF CHEDDAR 40# BLOCKS IN 1,000 TO 5,000 POUND MIXED LOTS                                      

MADISON, WI.  January 28, 2015 (REPORT 4) 

MIDWEST CHEESE:                                                  
                       
Strong cheese production in the Midwest continues to be driven by the 
volumes of milk being received.  Cheese plants reach peak 
efficiencies when running full schedules so to that extent, good milk 
availability is a positive.  The challenge is in selling higher 
cheese volumes to actualize the efficiencies.  There are Midwest 
plants where cheese inventory is growing but other plants are 
experiencing good order interest sufficient to keep inventories more 
in a desired balance.  Even where inventory levels are higher, there 
is awareness of the situation but mostly a feeling that inventories 
are manageable.  Spot loads of milk are available this week at prices 
between $2.00 under to $1.50 over, depending on location and timing, 
but most plants are satisfied with regular milk supplies.  Some 
cheese buyers are paying premiums to Midwest manufacturers of 5 to 7 
cents above market.  The National Retail Report - Dairy (DMN) found 
that January 23 to 29  Midwest ads for 8 ounce shredded cheese have a 
weighted average advertised price of $2.37, 19 cents lower than the 
national average, $2.56.  One year ago the national average price was 
$2.31.  The Midwest price range is $1.98 to $2.50.  For 8 ounce 
blocks, the Midwest average price is $2.11, 23 cents lower than the 
national average price, $2.34.  One year ago the national average 
price was $2.20.  The Midwest price range is $1.98 to $2.50.  
Wisconsin wholesale prices for 1,000 to 5,000 pound mixed lots of 
process cheese decreased $.0600, Swiss is unchanged and the remaining 
varieties decreased $.0425.  NASS reports that December 31, 2014 East 
North Central region (Wisconsin, Illinois, Michigan, Indiana and Ohio) other 
cheese stocks were 91% of December 31, 2013, but even with November 30, 
2014.  East North Central region American cheese stocks were 101% of 
December 31, 2013, but even with November 2014.  Total U.S. December 31, 
2014 natural cheese stocks were 1.013 billion pounds, even with one year 
prior and the previous month. Total U.S. Swiss cheese stocks ending December 
31, 2014, 21.3 million pounds were 86% of one year previously and 87% of the 
previous month.  In CME Group cheese trading, barrels closed Wednesday 
this week at $1.4750, up $.0250 from Wednesday last week and blocks 
closed at $1.4850, up $.0100 from Wednesday last week.   
                                                                
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5550-1.9150       
Brick And/Or Muenster 5#                   : 1.8525-2.2775       
Cheddar 40# Block                          : 1.5575-1.9750       
Monterey Jack 10#                          : 1.8275-2.0325       
Blue 5#                                    : 2.1200-3.1075       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6975-2.5925       
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