MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  March 11, 2015 (REPORT 10)                         

MIDWEST CHEESE: 

Buying interest for cheese in the upper Midwest is strong, even 
stronger than recent weeks for some plants.  This is leading to 
increased cheese production following weeks of already strong 
production schedules.  Some cheese buyers calling this week are 
surprising sales managers with unsolicited and unexpected requests 
for cheese to be delivered as early as next week and through the end 
of April.  This has led to purchasing spot milk to be able to 
increase production schedules.    With spot milk available ranging to 
$2.00 to $3.00 under class, manufacturing more cheese for orders in 
hand is welcome.  Some plants have thin cheese inventory levels 
because they have been selling almost all of what they have made, 
which is why buying more milk is necessary to meet last minute new 
orders for cheese.  For the immediate future, continuing active 
cheese production is planned to keep up with buying demand.  Some 
manufacturers would like to transition to holding somewhat more 
inventories to have a greater ability to respond to buyers aside from 
scrambling to produce more cheese in a short time frame.  The 
National Retail Report - Dairy (DMN) found that March 6 to March 12  
Midwest ads for 8 ounce shredded cheese have a weighted average 
advertised price of $2.36, 31 cents lower than the national average, 
$2.67.  One year ago the national average price was $2.34.  The 
Midwest price range is $1.88 to $3.49.  For 8 ounce blocks, the 
Midwest average price is $2.12, 21 cents lower than the national 
average price, $2.33.  One year ago the national average price was 
$2.44.  The Midwest price range is $1.88 to $2.50.  Wisconsin 
wholesale prices for 1,000 to 5,000 pound mixed lots of process are 
up $.0075, Swiss is down $.4575 following the change in the 
Class III price, and the remaining varieties are up $.0075.  In 
CME Group cheese trading, barrels closed Wednesday this week at 
$1.5650, up $.0725 from Wednesday last week and blocks closed at 
$1.5700, up $.0200.  
                                                               
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6000-1.9600       
Brick And/Or Muenster 5#                   : 1.9300-2.3550       
Cheddar 40# Block                          : 1.6575-2.0525       
Monterey Jack 10#                          : 1.9050-2.1100       
Blue 5#                                    : 2.1975-3.1850       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7750-2.6700       
Grade A Swiss Cuts 6 - 9#                  : 2.9525-3.0700       




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