MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  February 03, 2016 (REPORT 5)                       

MIDWEST CHEESE:                                                  

Midwestern cheese production remains active with a more than adequate milk supply. 
Although a snowstorm cut across the midsection of the country early in the week, milk 
intakes were only minimally disrupted. Manufacturers are comfortable with their 
current milk volumes and are not seeking additional loads of milk. Nor are milk 
handlers offering many spot loads of milk. A few Midwest cheese makers report sales 
into Eastern markets are still slow as a result of the massive snowstorm two weeks 
ago. Some cheese meant for pizza chains has backed up into Midwestern manufacturers' 
inventories. Other cheese processors report domestic retail customers are content 
with cheese shipments. They say production and demand are in balance. Some production 
is shifting away from cheddars to other fresh natural varieties, like jack cheeses, 
to support the solid retail cheese demand. Cheese needed for Super Bowl parties has 
shipped and are on the shelves or in the pizza stores. Now manufacturers hope the 
strong domestic demand will continue, or an export market for cheese will develop to 
aid in the drawdown of U.S. cheese inventories. The DMN National Retail Report-Dairy 
shows that January 29-February 4 Midwest ads for 8 ounce shred cheese have a weighted 
average advertised price of $2.06, 28 cents lower than the national average. Midwest 
prices range from $1.50-$2.50. One year ago, the national price was $2.56. For 8 
ounce blocks, the Midwest average price is $2.02, 18 cents below the national average 
price. Midwest ads are priced from $1.66-$2.50. Last year, the national price was 
$2.50. Midwestern wholesale prices are unchanged for Swiss cuts, but down $.0475 for 
process and down $.0175 for all other types. This week, a cooperative export 
assistance program accepted requests for 509,268 pounds of cheese. The CME Group 
January 2016 monthly average price for barrels, $1.4842, is above $1.4638, the 
monthly average for December 2015, but below $1.4995, the January 2015 monthly 
average. Blocks' January average price, $1.4757, is up from $1.4616 in December, but 
down from $1.5218 one year ago. In CME Group trading Wednesday, barrels closed at 
$1.4500, up $.0200 from last Wednesday and blocks closed at $1.4700, up $.0100. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5275-1.8875       
Brick And/Or Muenster 5#                   : 1.8375-2.2625       
Cheddar 40# Block                          : 1.5650-1.9600       
Monterey Jack 10#                          : 1.8125-2.0175       
Blue 5#                                    : 2.1050-3.0925       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6375-2.5775       
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