MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  February 11, 2015 (REPORT 6)                       

MIDWEST CHEESE:                                                  
                                                                 
Cheese pricing is viewed by many buyers as conducive to building 
inventory levels.  In cheese plants, this week is much like last 
week, with very strong production and most plants operating at or 
near capacity.  Regular buyers are able to cover orders from their 
regular sellers.  While some plants have lower sales due to buyers 
pacing purchases to fill current needs, even with weekly averages 
having increased the last two weeks, that is not the mainstream 
situation.  More plants report good sales to buyers who are 
interested in holding more inventories.  Ongoing inventory growth has 
two dimensions, retail inventory and aging programs for cheddar and 
parmesan.  Abstract concerns remain and are discussed as to export 
challenges and currency exchange issues looking forward several 
months.  But for the present, production levels and cheese sales seem 
comfortable to most manufacturers.  The National Retail Report - 
Dairy (DMN) found that February 6 to 12  Midwest ads for 8 ounce 
shredded cheese have a weighted average advertised price of $2.34, 18 
cents lower than the national average, $2.52.  One year ago the 
national average price was $2.18.  The Midwest price range is $1.99 
to $2.50.  For 8 ounce blocks, the Midwest average price is $2.17, 30 
cents lower than the national average price, $2.47.  One year ago the 
national average price was $2.30.  The Midwest price range is $1.66 
to $2.50.   Wisconsin wholesale prices for 1,000 to 5,000 pound mixed 
lots of process cheese increased $.0075, Swiss decreased $.2125 and 
the remaining varieties increased $.0350.  In CME Group cheese 
trading, barrels closed Wednesday this week at $1.4800, down 1/2 cent 
from Wednesday last week and blocks closed at $1.5300, also down 1/2 
cents.   

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5950-1.9550       
Brick And/Or Muenster 5#                   : 1.9125-2.3375       
Cheddar 40# Block                          : 1.6175-2.0350       
Monterey Jack 10#                          : 1.8875-2.0925       
Blue 5#                                    : 2.1800-3.1675       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7575-2.6525       
Grade A Swiss Cuts 6 - 9#                  : 3.4100-3.5275   

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