MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  March 30, 2016 (REPORT 13)                         

MIDWEST CHEESE:                                                  

Midwest cheese makers say production is at or near full capacity. Milk is readily 
available and pushing into the vats. Some processors report trying to sell excess spot 
loads of milk to ease the pressure. A few manufacturers are willing to take on the milk 
at $2 to $3 under Class to keep the vats full. Inventories for commercial cheese types 
are generally long, but manufacturers are finding specialty cheeses are moving well and 
stocks of these varieties are tighter. A few processors are actively managing cheese 
supplies by rotating stocks and working through inventories with current sales. Domestic 
cheese demand is relatively stable and good, especially for retail and food service 
accounts. Current price points make it possible for processors to move cheese. After a 
bit of a lull, cheese makers are observing a little pick up in order volumes this week. 
They are hopeful the trend continues through the spring and into the summer grilling 
season. The DMN National Retail Report-Dairy shows that March 25-31 Midwest ads for 8 
ounce shred cheese have a weighted average advertised price of $2.11, 17 cents lower than 
the national average. Midwest prices range from $1.33-$2.79. One year ago, the national 
price was $2.42. For 8 ounce blocks, the Midwest average price is $2.18, 33 cents below 
the national average price. Midwest ads are priced from $1.33-$2.79. Last year, the 
national price was $2.47. Midwestern wholesale prices are unchanged for Swiss cuts, but 
up $.0200 for process, and up $.0025 for all other types. This week, a cooperative export 
assistance program accepted requests for 2.216 million pounds of cheese. So far this 
year, the program has accepted requests to sell 12.209 million pounds of cheese. In CME 
Group trading Wednesday, barrels closed at $1.4525, up $.0025 from last Wednesday, and 
blocks closed at $1.4600, down $.0300. 
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5600-1.9200       
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#                  : 2.5725-2.6900       

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