MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  November 24, 2015 (REPORT 47)                      

MIDWEST CHEESE:                                                  

Midwest cheese makers are running full schedules over the Thanksgiving holiday weekend. A 
lot of milk is available for processing. Some milk is moving within the region as 
manufacturers try to absorb the abundant supply. Spot loads of milk are readily available 
at $3 under Class. Some cheese makers are willing to buy the loads of milk to make 
specialty cheese varieties that command a premium. Other manufacturers are hesitant to 
purchase because of the wide spread between blocks and barrels. There are concerns of a 
possible downward correction in the block price. Demand for commercial cheese used in 
manufacturing is relatively quiet compared to previous years. Inventories for cheese 
blocks are moderate to long and barrels are long. Retail consumer cheese demand is still 
strong. The DMN National Retail Report - Dairy shows that November 20-26 Midwest ads for 
8 ounce shred cheese have a weighted average advertised price of $2.25, 4 cents lower 
than the national average. Midwest prices range from $1.33-$2.99. One year ago, the 
national price was $2.56. For 8 ounce blocks, the Midwest average price is $2.09, 19 
cents lower than the national average price. Midwest ads are priced from $1.33-$2.99. 
Last year, the national price was $2.61. Midwestern wholesale prices unchanged for Swiss 
cuts, down $.1025 for process, and down $.0900 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 October 31, 2015 were 120% of last year, and 
101% of last month. East North Central region other cheese stocks were 116% of October 
31, 2014 and 98% of September 30, 2015. Total U.S. natural cheese stocks on October 31, 
2015 were 115% of a year ago and 100% of a month ago. In CME Group trading Tuesday, 
barrels closed at $1.5325, up $.0825 from last Tuesday and blocks closed at $1.5700, 
unchanged. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5425-1.9025       
Brick And/Or Muenster 5#                   : 1.9525-2.3775       
Cheddar 40# Block                          : 1.6800-2.0750       
Monterey Jack 10#                          : 1.9275-2.1325       
Blue 5#                                    : 2.2200-3.2075       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7525-2.6925       
Grade A Swiss Cuts 6 - 9#                  : 2.7775-2.8950       


1200C 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