MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  May 13, 2015 (REPORT 19)                           

MIDWEST CHEESE:                                                  
    
Midwest cheese production this week is very similar to last week.  
Milk flows to plants in volumes sufficient for full manufacturing 
schedules.  Surplus milk is available, with pricing varied day by day.  
Early week pricing depending on timing and location reached $3.00 
below Class while late last week available surplus milk was being 
shopped around at $5.00 below, with some price motivated cheese plants 
making purchases.  Barrel availability began the week tighter than 
blocks, but each is more readily available than in recent weeks.  
There is discussion of barrel supply tightness "softening on the 
edges", meaning that non-contract cheese is becoming more available to 
purchase from plants, with less need to rely on the CME Group as a 
backup source.  Some buyers also report that blocks are more available 
on a spot basis than previously.  Manufacturers also seem to be adding 
to their own inventories, a change from recent patterns where many 
manufacturers had light inventories due to sales demand.  Sales remain 
strong, but many manufacturers are now producing enough cheese beyond 
sales commitments to gradually increase manufacturer inventory levels.  
Discussion is increasing about possible near term slightly weaker cash 
prices  .  However, with cheese futures prices for coming months above 
current cash prices, many manufacturers remain comfortable with 
increasing current holdings, knowing that future sale prices can be 
protected.  The National Retail Report - Dairy (DMN) found that May 8 
to May 14 Midwest ads for 8 ounce shredded cheese have a weighted 
average advertised price of $2.33, 6 cents lower than the national 
average, $2.39.  Midwest prices range from $1.99 - $3.00.  One year 
ago the national average price was $2.37.  For 8 ounce blocks, the 
Midwest average price is $2.47, 8 cents higher than the national 
average price, $2.39.  Midwest ads are priced from $1.99 to $3.00.  
One year ago the national average price was $2.43.  Wisconsin 
wholesale prices for 1,000 to 5,000 pound mixed lots of process cheese 
increased $.0100, and the remaining varieties are unchanged.  In CME 
Group trading Wednesday, Barrels closed at $1.6100, down $.0050 from 
last Wednesday and Blocks closed at $1.6125, up $.0025 from last 
Wednesday.  

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7350-2.0950       
Brick And/Or Muenster 5#                   : 1.9875-2.4125       
Cheddar 40# Block                          : 1.7150-2.1100       
Monterey Jack 10#                          : 1.9625-2.1675       
Blue 5#                                    : 2.2550-3.2425       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7875-2.7275       
Grade A Swiss Cuts 6 - 9#                  : 2.6900-2.8075       
 
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