MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  February 18, 2015 (REPORT 7)                       

MIDWEST CHEESE: 

Many commercial cheese buyers continue to have an active interest in 
building inventory levels at current cheese prices.  Dairy 
manufacturers with multiple dairy product manufacturing options in 
their plants generally favor diverting milk into cheese making over 
other dairy products at the present time for profitability reasons.  
Relatively stable cheese prices are helping sustain manufacturer 
margins related to what is paid for milk compared with cheese sales 
prices.  Moreover, with surplus milk in the Midwest selling at below 
Class prices, cheese manufacturing is at very heavy levels in most 
plants.  Some smaller cheese plants are experiencing slower sales, 
but not so with larger volume commercial buyers for retail sale and 
aging programs, cheddar in particular.  The National Retail Report - 
Dairy (DMN) found that February 13 to 19  Midwest ads for 8 ounce 
shredded cheese have a weighted average advertised price of $2.19, 28 
cents lower than the national average, $2.47.  One year ago the 
national average price was $2.18.  The Midwest price range is $1.69 
to $2.50.  For 8 ounce blocks, the Midwest average price is $2.35, 1 
cents lower than the national average price, $2.36.  One year ago the 
national average price was $2.30.  The Midwest price range is $1.69 
to $2.99.  Wisconsin wholesale prices for 1,000 to 5,000 pound mixed 
lots of process cheese decreased $.0050, Swiss is unchanged and the 
remaining varieties decreased $.0025.  In CME Group cheese trading, 
barrels closed Wednesday this week at $1.4850, up 1/2 cent from 
Wednesday last week and blocks closed at $1.5400, up 1 cent.   
                                                             
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5900-1.9500       
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#                  : 3.4100-3.5275       

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