MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  November 04, 2015 (REPORT 44)                      

MIDWEST CHEESE:                                                  

Steady milk intakes have translated into steady cheese production. Processors say on occasion they 
are short a load or two of milk, but are hesitant to buy unless the milk can be purchased at a 
discount. Manufacturers report domestic orders for natural cheese varieties have been strong, with 
some customers willing to take extra loads of cheese. Food service demand has been solid. Interest 
in barrels has grown and buyers are seeking uncommitted inventories. The DMN National Retail Report 
- Dairy shows that October 30 - November 4 Midwest ads for 8 ounce shred cheese have a weighted 
average advertised price of $2.09, 5 cents lower than the national average. Midwest prices range 
from $0.98 - $3.00. One year ago, the national price was $2.46. For 8 ounce blocks, the Midwest 
average price is $2.05, 24 cents lower than the national average price. Midwest ads are priced from 
$0.98 - $2.50. Last year, the national price was $2.41. Midwestern wholesale prices are unchanged 
for Swiss cuts, down $.0250 for process, and down $.0125 for all other types. Dairy Products (NASS) 
reports total 2015 U.S. cheese production, year to date through September, is 8.710 billion pounds, 
2.5% above 2014. September total 2015 U.S. cheese production, 956.0 million pounds, is 2.4% above 
September last year but is 2.3% below August this year. Central total cheese production for 
September was 427.6 million pounds, 3.7% more than last year. For various types of cheese, 
September 2015 U.S. and Central cheese production compared to September 2014 is as follows:

	U.S.	Central
American	+2.8%	+5.3%
Cheddar		+3.8%	+3.4%
Total Italian	+0.4%	+0.2%
Mozzarella	+0.6%	+1.1%
Swiss		+8.3%	 na

The CME Group October 2015 monthly average price for barrels, $1.6072, is above $1.5840 in 
September, but below $2.0782 in October one year ago. Blocks' August average price, $1.6674, is up 
from $1.6605 in September, but down from $2.1932 one year ago. In CME Group trading Wednesday, 
barrels closed at $1.6275, up $.0725 from last Wednesday and blocks closed at $1.6200, up $.0250. 


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6550-2.0150       
Brick And/Or Muenster 5#                   : 1.9850-2.4100       
Cheddar 40# Block                          : 1.7125-2.1075       
Monterey Jack 10#                          : 1.9600-2.1650       
Blue 5#                                    : 2.2525-3.2400       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7850-2.7250       
Grade A Swiss Cuts 6 - 9#                  : 2.7850-2.9025       


2015 U.S. Cheese and Curd Exports (USDA-FAS)

                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

September Total      48.9            - 20

TOTAL, JAN - SEP    541.0            - 15

 1 Mexico           152.0            + 11
 2 South Korea      104.7            - 14
 3 Japan             59.4            - 40
 4 Australia         31.1            - 6
 5 China             20.9            - 3


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