MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. February 25, 2015 (REPORT 8) MIDWEST CHEESE: Midwest cheese markets are in a curious calm position. Even with more milk going into cheese than would be typical in past years, discounted milk being available, and expectations of more milk arriving soon during the Spring flush, cheese markets have been quite stable. The potential impact of uncertainty involving near future cheese production is minimized for the present as markets seem to reflect a comfortable balance between demand and supply of cheese. Manufacturers have strong cheese production schedules but cheese buyers are stepping up and adding to inventory levels. Buying interest is spread between retail buyers, brokers and resellers, as well as cut and wrap operations. Cheese is going into inventories for retail sale as well as aging programs. Market prices are remaining quite stable as this buying process continues. Whatever impact the likely spring milk flush will have on cheese prices is not something that is curtailing cheese buying this week. There seems to be an interest among many buyers in possessing inventories and current price levels are leading to cheese changing hands. The likely fact that there will soon be even more milk being made into cheese and thus, more cheese being offered, seems not to be slowing current production or cheese purchasing. Plants with varied dairy manufacturing options tend to continue favor directing milk into cheese vats over other product production. In the Midwest, if you want cheese you can find it and if you make cheese you can sell it. The National Retail Report - Dairy (DMN) found that February 20 to 26 Midwest ads for 8 ounce shredded cheese have a weighted average advertised price of $2.28, 18 cents lower than the national average, $2.46. One year ago the national average price was $2.40. The Midwest price range is $1.99 to $2.50. For 8 ounce blocks, the Midwest average price is $2.50, 14 cents lower than the national average price, $2.64. One year ago the national average price was $2.32. All Midwest ads are priced $2.50. NASS reports that January 31, 2015 East North Central region (Wisconsin, Illinois, Michigan, Indiana and Ohio) other cheese stocks were 103% of December 31, 2014, but 96% of January 31, 2014. East North Central region American cheese stocks were 101% of December 31, 2014 and 108% of January 31 2014. Total U.S. January 31, 2015 natural cheese stocks were 1.043 billion pounds, 103% of one year prior and 102% of the previous month. Total U.S. Swiss cheese stocks ending January 31, 2015, 22.4 million pounds, were 88% of one year previously but 105% of the previous month. Wisconsin wholesale prices for 1,000 to 5,000 pound mixed lots of process cheese increased $.0025, Swiss is unchanged and the remaining varieties increased $.0100. In CME Group cheese trading, barrels closed Wednesday this week at $1.4825, down 1/4 cent from Wednesday last week and blocks closed at $1.5450, up 1/2 cent. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.5925-1.9525 Brick And/Or Muenster 5# : 1.9200-2.3450 Cheddar 40# Block : 1.6250-2.0425 Monterey Jack 10# : 1.8950-2.1000 Blue 5# : 2.1875-3.1750 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7650-2.6600 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