MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  July 22, 2015 (REPORT 29)                          

MIDWEST CHEESE:                                                  
                                                                 
Cheese markets are difficult to categorize. Last week's CME Group 
price declines led to some discussion of weakness. However, in CME 
Group trading this week Wednesday, Barrels closed at $1.6450, up 
$.0350 from last Wednesday and Blocks closed at $1.6650, up $.0250. 
Recent domestic cheese prices have tended to be above international 
prices. Manufacturers don't take that as a continuing certainty and 
hence, more attention is being paid to cheese production trends 
overseas and particularly in New Zealand where milk production 
typically seasonally increases in August. There is some discussion 
about an anticipated shift in New Zealand from a historic focus on 
channeling milk into Whole Milk Powder (WMP), into more cheese 
production. That is causing more discussion as to the impact of added 
global cheese volumes on markets later this year. Favorable weather in 
much of the Midwest has kept late July milk flowing to cheese plants 
in volumes above what historically has occurred most years. Even with 
some seasonal declines in milk volumes and components, there is enough 
milk for any taker and some at prices of $2.00 below Class in the 
Midwest. In some of Minnesota, very humid weather in the past week has 
resulted in a more noticeable decline in milk production than 
generally in the rest of the Midwest. Extreme heat in Iowa is also 
something being watched as it may affect milk production there. Cheese 
sales continue to be generally good. Many end users and cut/wrap 
operations are nearing the end of a several month cheese buying focus. 
With inventories now nearing desired levels for sale later in the 
year, cheese manufacturers are still readily able to sell cheese when 
they want, rather than build their own inventory levels. Some plants 
are shifting away from cheddar and increasing production of Monterey 
jack, Muenster and Colby jack. The DMN National Retail Report - Dairy 
shows that July 17 - 23 Midwest ads for 8 ounce shredded cheese have a 
weighted average advertised price of $2.30, 1 cent higher than the 
national average. Midwest prices range from $1.79 - $2.50.  One year 
ago the national price was $2.58. For 8 ounce blocks, the Midwest 
average price is $2.38, 2 cents higher than the national average 
price. Midwest ads are priced from $1.79 to $2.50. Last year, the 
national price was $2.57. Midwestern wholesale prices are unchanged 
for Swiss cuts, down $.0025 for process, and down $.0175 for all other 
types. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7150-2.0750       
Brick And/Or Muenster 5#                   : 2.0225-2.4475       
Cheddar 40# Block                          : 1.7500-2.1450       
Monterey Jack 10#                          : 1.9975-2.2025       
Blue 5#                                    : 2.2900-3.2775       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8225-2.7625       
Grade A Swiss Cuts 6 - 9#                  : 2.7275-2.8450       

1300C eric.graf@ams.usda.gov  
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