MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  June 10, 2015 (REPORT 23)                          

MIDWEST CHEESE:                                                  
 
The worldview from cheese plants this week is similar to last 
week.  Surplus milk is available in many locations.  Reports of 
surplus milk at $5.00 below Class are heard in Wisconsin, Iowa, 
and South Dakota.  In Ohio, some surplus milk is being shopped 
around at $4.00 below Class.  Various milk handlers are offering 
discounted prices through June to get buyer commitments now.  In 
some plants manufacturing cheese that can be cut right away, 
such as Monterey jack and Colby jack, those varieties are 
favored now in scheduling production.  Other plants with 
capacity to make hard Italian varieties such as parmesan and 
Romano, are keeping emphasis on those varieties as a preference 
to other varieties.  Reasons include the efficiencies of plant 
production processes as well as the need to age the cheese and 
have it on hand later in the year to meet inventory goals.  Once 
inventory goals are met, some production is expected to shift 
toward cheddar production in coming weeks.  There is a shift 
noticed in foodservice sales.  The demand for processed cheese 
has lessened in terms of orders, while demand for natural cheese 
is increasing.  This is attributed to more restaurants using 
natural cheese slices as part of more "upscale" menus.  The 
National Retail Report - Dairy (DMN) found that June 5 to June 
11 Midwest ads for 8 ounce shredded cheese have a weighted 
average advertised price of $2.35, 6 cents lower than the 
national average, $2.41.  Midwest prices range from $1.66 - 
$2.99.  One year ago the national average price was $2.37.  For 
8 ounce blocks, the Midwest average price is $2.27, 11 cents 
lower than the national average price, $2.38.  Midwest ads are 
priced from $1.66 to $2.99.  One year ago the national average 
price was $2.44.  Wisconsin wholesale prices for 1,000 to 5,000 
pound mixed lots of process cheese increased $.0525, Swiss 
increased $.0100, and the remaining varieties increased $.0650.  
In CME Group trading Wednesday, Barrels closed at $1.7100, up 
$.0100 from last Wednesday and Blocks closed at $1.7500, also up 
$.0100 from last Wednesday.   
                                                                
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7925-2.1525       
Brick And/Or Muenster 5#                   : 2.1125-2.5375       
Cheddar 40# Block                          : 1.8400-2.2350       
Monterey Jack 10#                          : 2.0875-2.2925       
Blue 5#                                    : 2.3800-3.3675       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9125-2.8525       
Grade A Swiss Cuts 6 - 9#                  : 2.7000-2.8175       

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