MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  September 23, 2015 (REPORT 38)                     

MIDWEST CHEESE: 

Midwest milk intakes continue to slowly decline. Steady cheese production is making 
a home for all available milk. Consumer cheese demand remains strong. Some cut and 
wrap operations report a seasonal increase in sales, but a few contacts note the 
strength of the draw has not been as strong as last year. The demand pull from 
pizza makers for mozzarella cheese is good. Industry contacts suggest inventories 
for commodity cheeses may be longer than usual for the end of Q3. However, 
manufacturers anticipate cheese stocks can be drawn down by Q4 purchases. The DMN 
National Retail Report - Dairy shows that September 18 - 24 Midwest ads for 8 ounce 
shred cheese have a weighted average advertised price of $2.05, 33 cents lower than 
the national average. Midwest prices range from $1.33 - $2.50. One year ago, the 
national price was $2.52. For 8 ounce blocks, the Midwest average price is $1.83, 
46 cents lower than the national average price. Midwest ads are priced from $1.33 - 
$2.00. Last year, the national price was $2.51. Midwestern wholesale prices are 
unchanged for Swiss cuts, down $.0925 for process, and down $.0250 for all other 
types. According to the NASS Cold Storage report, the East North Central region 
(Wisconsin, Illinois, Michigan, Indiana and Ohio) American cheese stocks on August 
31, 2015 were 115% of last year, and 101% of last month. East North Central region 
other cheese stocks were 116% of August 31, 2014 and 101% of July 31, 2015. Total 
U.S. natural cheese stocks on August 31, 2015 were 112% of a year ago and 100% of a 
month ago. In CME Group trading Wednesday, barrels closed at $1.4600, down $.0800 
from last Wednesday and blocks closed at $1.5900, down $.0150. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6525-2.0125       
Brick And/Or Muenster 5#                   : 2.0450-2.4700       
Cheddar 40# Block                          : 1.7725-2.1675       
Monterey Jack 10#                          : 2.0200-2.2250       
Blue 5#                                    : 2.3125-3.3000       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8450-2.7850       
Grade A Swiss Cuts 6 - 9#                  : 2.8300-2.9475       


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