MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  September 16, 2015 (REPORT 37)                     

MIDWEST CHEESE:                                                  

Recent heat and humidity have reduced milk production in parts of the Midwest. Some 
processors report being short a few loads of milk to run at full production. Although 
extra loads of milk are not as readily available as earlier in the summer, cheesemakers 
are able to buy the occasional load at about $1 over Class. Cheese production has 
remained relatively steady with some production shifts to natural varieties. Consumer 
demand is strong and some cheesemakers note a slight uptick in sales since the Labor Day 
holiday. Recent trading activity for barrels at the CME drove the price spread between 
blocks and barrels up to $.1450 on Tuesday before narrowing to $.0650 the next day. Up 
until trading on Wednesday, there had not been any sales, bids or offers for blocks on 
the CME since before Labor Day. Industry contacts suggest cheese inventories are long, 
especially for barrels. They also note some inventory for blocks, but at this point 
producers are willing to hold these inventories in advance of Q4 demand.

The DMN National Retail Report - Dairy shows that September 11 - 17 Midwest ads for 8 
ounce shred cheese have a weighted average advertised price of $2.00, 27 cents lower 
than the national average. Midwest prices range from $1.49 - $2.49. One year ago, the 
national price was $2.40. For 8 ounce blocks, the Midwest average price is $2.06, 15 
cents lower than the national average price. Midwest ads are priced from $1.49 - $2.88. 
Last year, the national price was $2.39. Midwestern wholesale prices are unchanged for 
Swiss cuts, down $.0125 for process, and down $.0200 for all other types. 

In CME Group trading Wednesday, barrels closed at $1.5400, down $.1300 from last 
Wednesday and blocks closed at $1.6050, down $.0900 from last week. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7450-2.1050       
Brick And/Or Muenster 5#                   : 2.0700-2.4950       
Cheddar 40# Block                          : 1.7975-2.1925       
Monterey Jack 10#                          : 2.0450-2.2500       
Blue 5#                                    : 2.3375-3.3250       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8700-2.8100       
Grade A Swiss Cuts 6 - 9#                  : 2.8300-2.9475       

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

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

Aug Quota Imports    16.8               + 15             6

Jan. - Aug    
High Tier            23.8               + 24             N.A.
Quota Imports       133.8               + 28             45

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