MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  September 2, 2015 (REPORT 35)                        

MIDWEST CHEESE:                                                  

Midwest milk production is in a slow, late summer decline. The current heat 
wave and bottling demand are pushing milk intakes slightly lower, but 
manufacturers report available milk is adequate for processing needs. Spot 
loads of milk are obtainable at Class to $1-2 above Class. Cheese production 
is active with many of the plants operating near full capacity. Some 
manufacturers report shifting their production to varieties such as colby and 
monterey jack. Others are putting some extra mozzarella into storage to carry 
through the fall pizza season. Industry contacts report ample cheese stocks. 
Although sales have slowed slightly, strong domestic demand has helped cheese 
makers keep their inventories manageable. Demand for cheese destined for 
retail is strong. Current pricing at the CME Group reflected a spread between 
blocks and barrels of 12 cents on Monday which narrowed to a more typical 3 
cents by Wednesday. The DMN National Retail Report - Dairy shows that August 
28 - September 4 Midwest ads for 8 ounce shred cheese have a weighted average 
advertised price of $2.16, 30 cents lower than the national average. Midwest 
prices range from $1.99 - $2.50. One year ago, the national price was $2.42. 
For 8 ounce blocks, the Midwest average price is $2.09, 25 cents lower than 
the national average price. Midwest ads are priced from $1.99 - $2.50. Last 
year, the national price was $2.31.Midwestern wholesale prices are unchanged 
for Swiss cuts, down $.0625 for process, and down $.0200 for all other types. 
In CME Group trading Wednesday, barrels closed at $1.6700, up $.0700 from 
last Wednesday and blocks closed at $1.7000, up $.0300. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7100-2.0700       
Brick And/Or Muenster 5#                   : 2.0575-2.4825       
Cheddar 40# Block                          : 1.7850-2.1800       
Monterey Jack 10#                          : 2.0325-2.2375       
Blue 5#                                    : 2.3250-3.3125       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8575-2.7975       
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