MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  January 20, 2016 (REPORT 3)                        

MIDWEST CHEESE:                                                  

Midwest cheese makers indicate a slowdown in commercial cheese sales following the winter 
holidays. Although demand is lighter, domestic consumer requests for retail cheese 
packages, deli and food service, are still relatively strong. Milk supplies are readily 
available and cheese production is active. Some processors are selling extra loads of 
milk where they can, often at prices near Class. Other manufacturers are running full 
production schedules to use as much of the dairy solids as possible. Cheese inventories 
are building, which is typical for early Q1 activity, and most cheese makers are not very 
concerned about rising inventories at this point in time. The DMN National Retail Report-
Dairy shows that January 15-21 Midwest ads for 8 ounce shred cheese have a weighted 
average advertised price of $2.22, 29 cents lower than the national average. Midwest 
prices range from $1.66-$2.50. One year ago, the national price was $2.54. For 8 ounce 
blocks, the Midwest average price is $2.24, 11 cents below the national average price. 
Midwest ads are priced from $1.79-$2.99. Last year, the national price was $2.33. 
Midwestern wholesale prices are unchanged for Swiss cuts, but up $.0225 for process and 
up $.0075 for all other types. This week, a cooperative export assistance program 
accepted requests for 766,547 million pounds of cheese. In CME Group trading Wednesday, 
barrels closed at $1.4950, down $.0250 from last Wednesday and blocks closed at $1.4800, 
down $.0150. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6225-1.9825       
Brick And/Or Muenster 5#                   : 1.8650-2.2900       
Cheddar 40# Block                          : 1.5925-1.9875       
Monterey Jack 10#                          : 1.8400-2.0450       
Blue 5#                                    : 2.1325-3.1200       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6650-2.6050       
Grade A Swiss Cuts 6 - 9#                  : 2.6875-2.8050       

1300CT 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