MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  April 15, 2015 (REPORT 15)                         

MIDWEST CHEESE:  

As always, there are variations between the world view in varied 
cheese plants.  However, most cheese manufacturers in the Midwest are 
comfortable with current market conditions.  "Very good markets" is a 
characterization offered this week, meaning production schedules are 
full but cheese is readily moving out the door.  A few plants have 
slightly lower cheese sales volume which is leading to increasing 
inventory levels.  Generally the increased inventories are accepted as 
a good cushion for ensuring steady sales deliveries later in the year.   
As has been the situation for a number of weeks, some plants are at or 
near full production.  A plant in the region has closed due to old age 
and the effort needed to modernize.  Another cheese plant is down for 
maintenance, which is sending the milk not used there throughout the 
state seeking a home, adding to other surplus milk already seeking a 
home.  Surplus milk in Wisconsin is selling at prices as low as $5.00 
below Class, depending on timing and location.  Some plants are 
expanding cheese production schedules to take advantage of the extra 
milk but some other plants are already at maximum production.  Credit 
is given to robust restaurant and food service sales for adding to 
retail interest in maintaining current high demand for cheese.  In 
fact, some cheese plant expansions are now underway to increase 
production capacity based in part on expectations for continuing 
strong demand for cheese.  These plants are encouraging dairy 
producers selling milk to the plants to increase milk production to 
supply pending expansions of plant capacity.  The National Retail 
Report - Dairy (DMN) found that April 10 to April 16  Midwest ads for 
8 ounce shredded cheese have a weighted average advertised price of 
$2.50, 15 cents higher than the national average, $2.35.  All Midwest 
prices are $2.50.  One year ago the national average price was $2.44.  
For 8 ounce blocks, the Midwest average price is $2.38, 2 cents lower 
than the national average price, $2.40.  Midwest ads are priced from 
$2.33 to $2.50.  One year ago the national average price was $2.22.   
Wisconsin wholesale prices for 1,000 to 5,000 pound mixed lots of 
process cheese increased $.0175, and the remaining varieties are 
unchanged.  In CME Group trading Wednesday, Barrels closed at $1.6150, 
up $.0050 from last Wednesday and Blocks closed at $1.5725, down 
$.0050 from last Wednesday.  This moved the barrel - block price 
inversion to $.0435 this week, up from $.0325 last week.
                                                                                                              
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7150-2.0750       
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  608.557.7005
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