MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  June 24, 2015 (REPORT 25)                          

MIDWEST CHEESE:   Milk is still readily available for cheese manufacturers 
but surplus milk priced below Class is less available.  Plant schedules 
remain very active and in a number of cases, are still at full production.  
Inventories of hard Italian varieties are reaching comfortable levels to be 
able to meet demand later in the year.  This is causing some refocusing into  
cheddar production.  As June draws closer to ending, manufacturers are aware 
of changing seasonal factors which could bear on cheese markets.  If June 
ended today, the CME June monthly average for blocks and barrels would 
increase over the May average.  For buyers using monthly average pricing, 
this would lead to a price increase.  Some buyers will be watching this 
factor in coming days and possibly attempting to shift purchasing forward to 
strategize the pricing they pay.  Cheese manufacturers are also thinking 
about expected lower milk production as summer progresses, coupled with the 
typical August activity that begins drawing more milk for school programs.  
There is growing consciousness of less demanding production schedules, and 
hence lower cheese output, ahead.  The National Retail Report - Dairy (DMN) 
found that June 19 to 25 Midwest ads for 8 ounce shredded cheese have a 
weighted average advertised price of $1.90, 47 cents lower than the national 
average, $2.37.  Midwest prices range from $1.50 - $2.00.  One year ago the 
national average price was $2.57.  For 8 ounce blocks, the Midwest average 
price is $1.87, 36 cents lower than the national average price, $2.23.  
Midwest ads are priced from $1.59 to $2.50.  One year ago the national 
average price was $2.62.  NASS reports that April 30, 2015 East North Central 
region (Wisconsin, Illinois, Michigan, Indiana and Ohio) American cheese 
stocks were 107% of May 31, 2014, and 102% of April 30, 2015.  East North 
Central region other cheese stocks were 109% of May 31, 2014 and 103% of 
April 30, 2015.  Total U.S. natural cheese stocks on May 31, 2015 were 104% 
of May 31, 2014 and 102% of April 30, 2015.  Wisconsin wholesale prices for 
1,000 to 5,000 pound mixed lots of process cheese decreased $.0275, Swiss is 
unchanged, and the remaining varieties decreased $.0400.  In CME Group 
trading Wednesday, Barrels closed at $1.6550, down $.0100 from last Wednesday 
and Blocks closed at $1.6675, down $.0325 from last Wednesday.   

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7775-2.1375       
Brick And/Or Muenster 5#                   : 2.0800-2.5050       
Cheddar 40# Block                          : 1.8075-2.2025       
Monterey Jack 10#                          : 2.0550-2.2600       
Blue 5#                                    : 2.3475-3.3350       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8800-2.8200       
Grade A Swiss Cuts 6 - 9#                  : 2.7000-2.8175       

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