MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  March 25, 2015 (REPORT 12)                         

MIDWEST CHEESE:                                                  
                                                                
Midwest cheese manufacturers are maintaining busy schedules to 
accommodate increasing volumes of milk.  This may sound like 
repetition of recent weeks, but this week's conditions continue to 
repeat the recent past.  Curiously, the sameness of conditions for 
several weeks is causing some nervousness, precisely because extended 
general equilibrium conditions seem aberrant.  Nevertheless, 
significant volumes of milk are being trucked from dairy farms and 
cheese continues to be a profitable outlet among dairy processing 
options.  Domestic cheese demand in the U.S. is still strong both in 
the retail and foodservice segments. Some Midwest cheese manufacturers 
note that cheese orders are up and inventories are decreasing.  Buyers 
and sellers each seem comfortable with inventory levels.  The National 
Retail Report - Dairy (DMN) found that March 20 to 26 Midwest ads for 
8 ounce shredded cheese have a weighted average advertised price of 
$2.01, 43 cents lower than the national average, $2.44. One year ago 
the national average price was $2.44. The Midwest price range is $1.67 
to $2.50. For 8 ounce blocks, the Midwest average price is $2.01, 43 
cents lower than the national average price, $2.44. One year ago the 
national average price was $2.44. The Midwest price range is $1.50 to 
$2.29.  NASS reports that February 28, 2015 East North Central region 
(Wisconsin, Illinois, Michigan, Indiana and Ohio) other cheese stocks 
were 99% of February 28, 2014, but 102% of January 31, 2015. East 
North Central region American cheese stocks were 107% of February 28, 
2014 and 104% of January 31, 2015.  Total U.S. February 28, 2015 
natural cheese stocks were 1.064 billion pounds, 105% of one year 
prior and 102% of the previous month. Total U.S. Swiss cheese stocks 
ending February 28, 2015, 23.7 million pounds, were 88% of one year 
previously but 106% of the previous month.  Wisconsin wholesale prices 
for 1,000 to 5,000 pound mixed lots of process cheese declined $.0050, 
Swiss is unchanged and the remaining varieties declined $.0075. In CME 
Group cheese trading, barrels closed Wednesday this week at $1.5100, 
down 5 cent from Wednesday last week and blocks closed at $1.5300, 
down 4 cent. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6475-2.0075       
Brick And/Or Muenster 5#                   : 1.9375-2.3625       
Cheddar 40# Block                          : 1.6650-2.0600       
Monterey Jack 10#                          : 1.9125-2.1175       
Blue 5#                                    : 2.2050-3.1925       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7825-2.6775       
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