MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. May 20, 2015 (REPORT 20) MIDWEST CHEESE: Milk volumes being utilized by many Midwest cheese plants this week have reached all time high levels for this year, even up from recent weeks which have had high volumes. In the Central region and Wisconsin in particular, the volume of milk reaching cheese plants has resulted some running 7 days a week every other week to keep up with contracted orders, with existing sales contracts extending weeks into the future. There is a feeling among workers at some plants of "hanging on", striving to simply cope with the relentless pressure of high daily milk intakes and keep going until the flush begins to fade away, the flood of milk slows, and schedules can be eased. Many plants will be in operation on Memorial Day, while some are trying to close Sunday or mid-day Saturday as shifts end, to give workers a break. There are plants with enough milk availability and buyer interest that production schedules could be set for 7 days a week, but they only run six days because not enough workers are available to staff a 7 day operation. Cheese sales are good all over the region and that applies to the range of varieties offered by plants. No indication was heard of plants facing difficulties in finding buyers for the volumes of cheese being manufactured. Memorial Day often marks the approximate point where increasing milk production slows, before beginning to decline. So far this week, there is no sign that the tide has turned yet. Surplus milk is being shopped around at prices reaching $4.00 below Class midweek and $5.00 below Class over the holiday weekend. Surplus milk is already being shopped for delivery in June, also $5.00 under Class for multiple loads. Some of the surplus milk volumes are resulting not only from the flush, but from the ending of school year fluid milk contracts, which then leaves processors with that milk to find other customers for. This phenomenon may counterbalance the impact on cheese plant milk availability of any decline in milk production in coming weeks, if the flush begins to recede then. With many cheese plants already having very full schedules, sellers typically have to work to find a plant with capacity to absorb surplus milk. In part of the region, surplus milk is reportedly being dumped because no buyers can be found. There are indications that the recent heavy demand for cheese barrels has eased, with large orders driving the demand being close to being filled. The National Retail Report - Dairy (DMN) found that May 15 to May 21 Midwest ads for 8 ounce shredded cheese have a weighted average advertised price of $2.26, 17 cents lower than the national average, $2.43. Midwest prices range from $1.25 - $2.99. One year ago the national average price was $2.52. For 8 ounce blocks, the Midwest average price is $2.43, 4 cents higher than the national average price, $2.39. Midwest ads are priced from $1.50 to $2.99. One year ago the national average price was $2.48. Wisconsin wholesale prices for 1,000 to 5,000 pound mixed lots of process cheese decreased $.0050, Swiss is unchanged, and the remaining varieties increased $.0050. In CME Group trading Wednesday, Barrels closed at $1.6150, up $.0050 from last Wednesday and Blocks closed at $1.6350, up $.0225 from last Wednesday. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.7300-2.0900 Brick And/Or Muenster 5# : 1.9925-2.4175 Cheddar 40# Block : 1.7200-2.1150 Monterey Jack 10# : 1.9675-2.1725 Blue 5# : 2.2600-3.2475 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7925-2.7325 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