MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  December 2, 2015 (REPORT 48)                      

MIDWEST CHEESE:                                                  
                                                                 
Following recently reported slowing of the rate of increase in milk 
production nationally, some Midwestern cheese manufacturers acquired extra 
spot milk that was available over the holiday period and weekend. While 
cheese inventories are generally comfortable, the longstanding experience 
of strong seasonal cheese sales into January still resonates with cheese 
manufacturers and factors into current production. It will become more 
clear in the coming weeks whether that is true this year, or whether late 
year demand was pulled earlier in the year leaving retail and food service 
therefore less in need of cheese in December and January. Export demand is 
light, except to Mexico which has remained active. Cream for vat 
fortification is less in use as some Midwest cheese manufacturers find it 
attractively profitable to sell cream into butter churning. The DMN 
National Retail Report - Dairy shows that November 27 - December 3 Midwest 
ads for 8 ounce shredded cheese have a weighted average advertised price 
of $2.15, 15 cents lower than the national average. Midwest prices range 
from $1.50 - $2.50. One year ago the national price was $2.50. For 8 ounce 
blocks, the Midwest average price is $1.99, 34 cents lower than the 
national average price. Midwest ads are priced from $1.50 to $2.99. Last 
year, the national price was $2.55. Midwestern wholesale prices are up 
$.0725 for process and unchanged for all other varieties. In CME Group 
trading Tuesday, barrels closed at $1.4950, down $.0550 from last Tuesday 
and blocks closed at $1.5250, also down $.0550. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6150-1.9750       
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       


Dairy Market News Reporting Change Notice
Upon the conclusion of the October 2015 industry comment period and a 
review of industry responses, Dairy Market News (DMN) is updating the 
Dairy Market News Working Guidelines, effective Report 1, January 2016. 
The updates will allow DMN market reports to additionally include 
information and sales prices reported by individuals and firms functioning 
as marketing agents selling on the behalf of dairy product manufacturers. 
The Working Guidelines updates are intended to capture more information on 
pricing and market conditions and reflect the evolution of the marketing 
of dairy products. Currently, market pricing information is collected for 
first sale, f.o.b. producers' plants or warehouses. 

Link to current and updated DMN working guidelines:
http://www.ams.usda.gov/market-news/individual-dairy-market-news-commodity-
reports

December 1, 2015
1200C eric.graf@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-
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