MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  April 08, 2015 (REPORT 14)                         

MIDWEST CHEESE:                                                  

Orders received by most Midwest cheese manufacturers continue to be 
consistently strong, leading to maintaining high levels of production.  
Extra milk is often available and is being purchased to achieve 
desired production levels.  Many plants have found that they can be 
opportunistic and hold out for milk discounts of $2.00 or more under 
class, and generally find sellers.  There is some surprise expressed 
at how long milk has been available at a discount in the Midwest.  The 
storage capacity available to plants varies.  Some manufacturers 
continue to make as much cheese as available milk allows, with no 
concern to storing what can't be immediately sold.  However, some 
plants are now facing fuller storage facilities which may begin to 
affect manufacturing schedules in the near future.  Storage capacity 
is not so much a factor for cheese manufacturers with specialty 
products or those in niche markets.  Dairy Products (NASS) reports 
February 2015 U.S. total cheese production, 884.3 million pounds, 
leads February last year by 3.9%, but is 9.5% below January this year. 
For various types of cheese, February 2015 U.S. production compared 
with February 2014 includes: American, +2.5%; cheddar, +3.4%; total 
Italian, +5.4%; and Swiss, +3.2%.  In the Central region, cheese 
production for February 2015 compared with February 2014 was: total 
cheese, +3.5%; American cheese, +0.1%; cheddar cheese, +2.9%; total 
Italian cheese, +8.0%; and mozzarella cheese, +3.8%.  The National 
Retail Report - Dairy (DMN) found that April 3 to April 9  Midwest ads 
for 8 ounce shredded cheese have a weighted average advertised price 
of $2.14, 25 cents lower than the national average, $2.39.  The 
Midwest price range is $1.66 to $2.99.  One year ago the national 
average price was $2.44.  For 8 ounce blocks, the Midwest average 
price is $2.20, 11 cents lower than the national average price, $2.31.  
Midwest ads are priced from $1.66 to $2.99.  One year ago the national 
average price was $2.22.  The CME Group March 2015 monthly average 
price for barrels, $1.5290, is up $.0441 from February but down $.7500 
from March one year ago.  Blocks' March average price, $1.5549, is up 
0+$.0167 from February but down $.8005 from one year ago.  Wisconsin 
wholesale prices for 1,000 to 5,000 pound mixed lots of process cheese 
increased $.0750, Swiss declined $.1825 and the remaining varieties 
declined $.0450.  In CME Group trading Wednesday, Barrels closed at 
$1.6100, up $.0150 from last Wednesday and Blocks closed at $1.5775, 
down $.0025 from last Wednesday.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6975-2.0575       
Brick And/Or Muenster 5#                   : 1.9550-2.3800       
Cheddar 40# Block                          : 1.6825-2.0775       
Monterey Jack 10#                          : 1.9300-2.1350       
Blue 5#                                    : 2.2225-3.2100       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7550-2.6950       
Grade A Swiss Cuts 6 - 9#                  : 2.7700-2.8875       

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