MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. December 09, 2015 (REPORT 49) MIDWEST CHEESE: Cheese production remains active across most of the Midwest. A few manufacturers are seeing slight increases in milk intakes. Plenty of milk is available for processing, and when needed, cheese makers can buy spot loads of milk at Class to $1 over. In some cases, the processors are skimming and selling the cream to increase returns. Specialty cheese sales are strong with many cheese makers selling gift items for the upcoming holidays. Deli, retail and food service cheese sales have also remained solid. Barrel cheese demand has softened somewhat and inventories are long. A few industry contacts say there has also been a slowdown in mozzarella sales. However, it is unclear if the actual demand is less or if cheese coming out of second tier markets is now meeting the needs for pizza cheese. The DMN National Retail Report-Dairy shows that December 4-10 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $1.99, 33 cents lower than the national average. Midwest prices range from $1.59-$2.79. One year ago, the national price was $2.50. For 8 ounce blocks, the Midwest average price is $1.92, 32 cents lower than the national average price. Midwest ads are priced from $1.59-$2.50. Last year, the national price was $2.55. Midwestern wholesale prices down $.0500 for Swiss cuts, down $.0075 for process, and down $.0300 for all other types. Dairy Products (NASS) reports total 2015 U.S. cheese production, year to date through October, is 9.699 billion pounds, 2.4% above 2014. October total 2015 U.S. cheese production, 990.9 million pounds, is 3.8% above last month. Central total cheese production for October was 452.4 million pounds, 5.9% more than last month. U.S. and Central Cheese Production: Percent Change October 2015 compared to October 2014 U.S. Central Total Cheese + 1.5% + 3.4% American - 0.7% + 0.4% Cheddar + 0.6% + 1.7% Total Italian + 2.2% + 6.3% Mozzarella + 1.1% + 7.8% Swiss + 9.6% na The CME Group November 2015 monthly average price for barrels, $1.5305, is below both $1.6072 in October, and $1.9326 in November one year ago. Blocks' November average price, $1.6176, is down from $1.6674 in October and down from $1.9513 one year ago. In CME Group trading Wednesday, barrels closed at $1.5000, up $.0050 from last Wednesday and blocks closed at $1.4750, down $.0500. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.6075-1.9675 Brick And/Or Muenster 5# : 1.9225-2.3475 Cheddar 40# Block : 1.6500-2.0450 Monterey Jack 10# : 1.8975-2.1025 Blue 5# : 2.1900-3.1775 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7225-2.6625 Grade A Swiss Cuts 6 - 9# : 2.7275-2.8450 2015 U.S. Cheese and Curd Exports (USDA-FAS) 2015 Exports % Change From (Million Lb.) 1 Year Ago October Total 52.1 - 10 TOTAL, JAN - OCT 593.1 - 15 1 Mexico 167.9 + 13 2 South Korea 110.5 - 18 3 Japan 64.6 - 40 4 Australia 34.0 - 3 5 China 23.9 - 7 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