MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  April 22, 2015 (REPORT 16)                         

MIDWEST CHEESE:     

Barrels have been surprisingly tight in the Midwest.  This has led to 
some manufacturers scheduling additional barrel production to take 
advantage of the inverted block/barrel prices.  Swiss production 
levels are higher, while cheddar and Italian varieties are steady to 
higher.  Some Midwest cheese plants are receiving sufficiently 
increased milk volumes from contracted production to reduce the need 
for surplus milk purchases for maintaining desired production levels.  
Spot milk is available at $2.00 under class, depending on location and 
timing.  Milk components are seasonally good, providing solid yields.  
The National Retail Report - Dairy (DMN) found that April 17 to April 
23  Midwest ads for 8 ounce shredded cheese have a weighted average 
advertised price of $1.99, 31 cents lower than the national average, 
$2.30.  Midwest prices range from $1.50 - $2.50.  One year ago the 
national average price was $2.44.  For 8 ounce blocks, the Midwest 
average price is $1.72, 50 cents lower than the national average 
price, $2.22.  Midwest ads are priced from $1.50 to $2.00.  One year 
ago the national average price was $2.21.  This week 27% of national 
conventional dairy ads are for cheese.  Wisconsin wholesale prices for 
1,000 to 5,000 pound mixed lots of process cheese increased $.0075, 
Grade A Swiss Cuts 6 - 9# were unchanged, and the remaining varieties 
decreased $.0025.  In CME Group trading Wednesday, Barrels closed at 
$1.6200, up $.0050 from last Wednesday and Blocks closed at $1.6100, 
up $.0375 from last Wednesday.  This reduced the barrel - block price 
inversion to $.0100 Wednesday, down from $.0425 last Wednesday.
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7225-2.0825       
Brick And/Or Muenster 5#                   : 1.9525-2.3775       
Cheddar 40# Block                          : 1.6800-2.0750       
Monterey Jack 10#                          : 1.9275-2.1325       
Blue 5#                                    : 2.2200-3.2075       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7525-2.6925       
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