MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  August 26, 2015 (REPORT 34)                        

MIDWEST CHEESE:                                                  

Some cheese manufacturers report milk intakes are down slightly, due to the seasonal 
decline in milk production and the increased bottling demand for schools. A short 
stretch of hot, humid days has created a little dip in milk production, but with 
cooler temperatures and the good cross-ventilation of newer cow barns, the impact has 
been minimal. Cheese production is active with only a little extra capacity available 
in the plants. Cheese makers are buying occasional loads of spot milk to fill 
capacity, but only when loads can be purchased at or below Class. Demand for cheese 
continues to be good in both retail and wholesale markets. Inventories have been 
building for hard Italian cheese and cheddars. Industry contacts suggest this is not a 
major concern, depending on the ability to move this cheese through the end of the 
year. The DMN National Retail Report - Dairy shows that August 21 - 27 Midwest ads for 
8 ounce shred cheese have a weighted average advertised price of $1.96, 38 cents lower 
than the national average. Midwest prices range from $1.50 - $2.50. One year ago, the 
national price was $2.42. For 8 ounce blocks, the Midwest average price is $1.97, 34 
cents lower than the national average price. Midwest ads are priced from $1.50 to 
$2.50. Last year, the national price was $2.31. Western wholesale prices are unchanged 
for Swiss cuts, down $.0300 for process, and down $.0175 for all other types. 
According to the NASS Cold Storage report, July 31, 2015 East North Central region 
(Wisconsin, Illinois, Michigan, Indiana and Ohio) American cheese stocks are 115% of 
July 31, 2014, and 104% of June 30, 2015. East North Central region other cheese 
stocks are up 15% from last year and up 3% from last month. Total U.S. natural cheese 
stocks are up 10% from last year and up 2% from last month. In CME Group trading 
Wednesday, Barrels closed at $1.6000, down $.0600 from last Wednesday and Blocks 
closed at $1.6700, down $.0200. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7725-2.1325       
Brick And/Or Muenster 5#                   : 2.0775-2.5025       
Cheddar 40# Block                          : 1.8050-2.2000       
Monterey Jack 10#                          : 2.0525-2.2575       
Blue 5#                                    : 2.3450-3.3325       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8775-2.8175       
Grade A Swiss Cuts 6 - 9#                  : 2.7700-2.8875       


1300C Mike.Bandli@ams.usda.gov  608-557-7010
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home