MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  February 24, 2016 (REPORT 8)                       

MIDWEST CHEESE:  

Relatively mild winter weather is keeping the milk flowing to Midwest cheese 
plants. Cheese production is steady. Inventories are building, even with good 
demand from food service and retail customers. Following experience of the past 
year with production increases which had not generally been anticipated early in 
the year, followed by higher sales, the current market undertone is awareness of 
creeping inventories but hopefulness that demand will continue to show strength. 
The DMN National Retail Report-Dairy shows that February 19-25 Midwest ads for 8 
ounce shred cheese have a weighted average advertised price of $2.38, 2 cents 
higher than the national average. Midwest prices range from $1.99-$2.99. One year 
ago, the national price was $2.46. For 8 ounce blocks, the Midwest average price 
is $2.35, 3 cents above the national average price. Midwest ads are priced from 
$1.99-$2.99. Last year, the national price was $2.64. NASS reports that January 
31, 2016 East North Central region (Wisconsin, Illinois, Michigan, Indiana and 
Ohio) American cheese stocks were 121% of January 31, 2015, and 101% of December 
31, 2015. East North Central region other cheese stocks were 114% of January 31, 
2015 and 102% of December 31, 2015.  Total U.S. natural cheese stocks on January 
31, 2016, 1.178 billion pounds, were 112% of January 31, 2015 and 103% of 
December 31, 2015. Total U.S. Swiss cheese stocks on January 31, 2016, 24.3 
million pounds, were 108% of January 31, 2015, but 99% of December 31, 2015. 
Midwestern wholesale prices are unchanged for Swiss cuts and process, but up 
$.0075 for all other types. In CME Group trading Wednesday, barrels closed at 
$1.4050, down $.0675 from last Wednesday and blocks closed at $1.4500, down 
$.0400 from last Wednesday. 
                                                                                                                
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5675-1.9275       
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#                  : 2.6700-2.7875       

1300CT eric.graf@ams.usda.gov 608.557.7005
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