MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. February 04, 2015 (REPORT 5) MIDWEST CHEESE: Larger Midwest cheese manufacturers are feeling better about the prices they sell cheese for compared with prices they pay for milk, than in mid-January, when cheese prices declined rapidly. Barring sharp declines in cheese prices during February, many manufacturers are more at ease with their margins looking forward a few weeks than they were several weeks ago. Some cheese manufacturers notice more recent interest from cheese brokers in acquiring inventories. This adds to purchasing by regular retail customers supplemented by food service buyers, who all seem to be stocking up on cheese. Nevertheless, some other manufacturers continue to lament lower cheese sales attributed to buyers only filling immediate needs in case prices move lower. Exporting cheese is somewhat challenging by virtue of relative currency valuation as well as decisions of several previously large customers of U.S. exported cheese having slowed or curtailed purchases. Nevertheless, exports still supplement profitability for some Midwest cheese plants in the form of current whey exports. Milk available to manufacturers is typically "up a little" from volumes a year ago. Cheese manufacturers expect milk volumes to seasonally increase until about May. Present cheese manufacturing schedules at most plants are very full, even maximum production in many plants. The National Retail Report - Dairy (DMN) found that January 30 to February 5 Midwest ads for 8 ounce shredded cheese have a weighted average advertised price of $2.49, 8 cents lower than the national average, $2.57. One year ago the national average price was $2.31. The Midwest price range is $1.66 to $2.99. For 8 ounce blocks, the Midwest average price is $2.31, 20 cents lower than the national average price, $2.51. One year ago the national average price was $2.20. The Midwest price range is $1.66 to $2.99. Wisconsin wholesale prices for 1,000 to 5,000 pound mixed lots of process cheese increased $.0325, Swiss is unchanged and the remaining varieties increased $.0250. Dairy Products (NASS) reports 2014 U.S. cumulative total cheese production, 11.4 billion pounds, leads 2013 by 2.8%. For various types of cheese, 2014 U.S. production compared with 2013 includes: American, +1.9%; cheddar, +1.9%; total Italian, +4.9%; mozzarella, +6.5%; and other Italian cheese types, +6.3%. Total U.S. cheese production for December, 1.004 billion pounds, was 5.5% above November 2014 and 2.5% above December 2013. In the Central region, cheese production for December 2014 compared with December 2013 was: total cheese, +3.7%; American cheese, +0.6%; cheddar cheese, +1.2%; total Italian cheese, +6.3%; and mozzarella cheese, +4.3%. The CME Group January 2015 monthly average price for barrels, $1.4995 is $.6732 lower than January 2014. Blocks' January 2015 average price, $1.5218, is $.7009 lower than January 2014. In CME Group cheese trading, barrels closed Wednesday this week at $1.4850, up 1 cent from Wednesday last week and blocks closed at $1.5350, up 5 cents. 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# : 1.8775-2.3025 Cheddar 40# Block : 1.5825-2.0000 Monterey Jack 10# : 1.8525-2.0575 Blue 5# : 2.1450-3.1325 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7225-2.6175 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