MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  March 2, 2016 (REPORT 9)                       

MIDWEST CHEESE:                                                  

With milk readily available, many cheese manufacturers report milk supplies for 
processing to be well balanced. But as on-farm milk production increases through the 
spring, manufacturers are starting to face an oversupply. Some processors report slowing 
cheese production and turning away loads of milk as monthly supply agreements end. At the 
same time, a few other plant managers are encouraged to keep the vats full in order to 
meet the solid retail demand. Processors say domestic consumer demand has not subsided 
much after the winter holidays and Super Bowl. Although cheese sold through cut and wrap 
and food service markets is moving, there is still some concern about the long 
inventories of cheddar blocks and barrels growing further. The DMN National Retail 
Report-Dairy shows that February 26-March 3 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.16, 10 cents lower than the national average. 
Midwest prices range from $1.50-$2.50. One year ago, the national price was $2.41. For 8 
ounce blocks, the Midwest average price is $2.01, 24 cents below the national average 
price. Midwest ads are priced from $1.50-$2.49. Last year, the national price was $2.21. 
Midwestern wholesale prices are unchanged for Swiss cuts, but down $.0350 for process, 
and down $.0275 for all other types. This week, a cooperative export assistance program 
accepted requests for 747,367 pounds of cheese. In CME Group trading Wednesday, barrels 
closed at $1.4275, up $.0225 from last Wednesday and blocks closed at $1.4500, unchanged. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5325-1.8925       
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#                  : 2.6700-2.7875       


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