MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  June 17, 2015 (REPORT 24)                          

MIDWEST CHEESE:                                                  

Industry contacts report cheese plants are running at full production.  In some cases, 
plants have added Sunday shifts to use the abundant milk for cheese making. Although 
there are some reports of disposals, most suggest the milk is being used fully and 
heavily discounted loads of milk are harder to find.  Some manufacturers report 
additional loads of milk can be found at $1-2 under Class. The cheese market is in 
balance.  Industry contacts note strong demand and most varieties are readily 
available.  Manufacturers are maintaining their inventories, but much of the 
production is being shipped to consumers within several weeks of production.

The National Retail Report - Dairy (DMN) found that June 12 - 18 Midwest ads for 8 
ounce shredded cheese have a weighted average advertised price of $2.36, 22 cents 
lower than the national average, $2.58.  Midwest prices range from $1.79 - $2.99.  One 
year ago the national average price was $2.57.  For 8 ounce blocks, the Midwest 
average price is $2.16, 9 cents lower than the national average price, $2.25.  Midwest 
ads are priced from $1.59 to $2.99.  One year ago the national average price was 
$2.62.  

Wisconsin wholesale prices for 1,000 to 5,000 pound mixed lots of process cheese 
increased $.0125, Swiss is unchanged, and the remaining varieties increased $.0075.  

In CME Group trading Wednesday, Barrels closed at $1.6650, down $.0450 from last 
Wednesday and Blocks closed at $1.7000, down $.0500 from last Wednesday.   

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.8050-2.1650       
Brick And/Or Muenster 5#                   : 2.1200-2.5450       
Cheddar 40# Block                          : 1.8475-2.2425       
Monterey Jack 10#                          : 2.0950-2.3000       
Blue 5#                                    : 2.3875-3.3750       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9200-2.8600       
Grade A Swiss Cuts 6 - 9#                  : 2.7000-2.8175       


         2015 U.S. Cheese Imports (USDA-FAS)

                  (Million Lb.)       % Change From   % of 
                                      1 Year Ago      Yearly Quota

May  Quota Imports   18.2               + 48              6

Jan. - May    
High Tier            14.3               + 21             N.A.
Quota Imports        78.0               + 32             26


100C eric.graf@ams.usda.gov  608.557.7005  mike.bandli@ams.usda.gov  608-557-7010
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