MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  April 06, 2016 (REPORT 14)                         

MIDWEST CHEESE:   

This being the flush time of year, milk available for cheese making is increasing. Spot 
sales of milk offered below class prices are reported. Some processors with heavy milk 
supplies, wishing to sell non committed milk, report that it can be difficult to find a 
buyer. Many Midwest cheese plants are operating at full capacity as a result of 
purchasing available spot milk. Domestic sales have been decent but export sales remain 
challenging. Awareness of tight cold storage availability weighs on the minds of a number 
of cheesemakers. Aging programs are well stocked. Mozzarella and cheddar production are 
particularly strong. Makers of specialty cheese, often made in relatively smaller plants 
than plants making commercial volumes of more common cheeses, particularly welcome the 
availability of discount milk to reduce the cost basis. The DMN National Retail Report-
Dairy shows that April 1-7 Midwest ads for 8 ounce shredded cheese have a weighted 
average advertised price of $1.88, 48 cents lower than the national average, $2.36. 
Midwest prices range from $1.50 - $2.50. One year ago the national price was $2.39. For 8 
ounce blocks, the Midwest average price is $1.85, 30 cents lower than the national 
average price, $2.15. Midwest ads are priced from $1.50 to $2.00. Last year, the national 
price was $2.31. Dairy Products (NASS) reports February 2016 U.S. total cheese 
production, 956.2 million pounds, was 7.8% more than a year ago but is 4.7% below January 
this year. Data for February 2016 is unadjusted for leap year. Cumulative total U.S. 
cheese production through February, 2016, was 5.1% greater than the same months of 2015. 
In Wisconsin, the highest producing cheese state in the region, cheese production for 
February 2016 compared with February 2015 was: total cheese, +8.7%; American, +7.8%; 
cheddar, +7.6%; total Italian, +7.8%; and mozzarella, +8.7%. For total cheese, American 
and cheddar, the percentage increase in Wisconsin production exceeded the national 
percentage. The CME Group March 2016 monthly average price for barrels, $1.4530, is below 
$1.4573 in February, and below $1.5290 in March one year ago. Blocks' March average 
price, $1.4877, is up from $1.4744 in February, but down from $1.5549 one year ago. In 
CME Group trading Wednesday, barrels closed at $1.4425, down $.0100 from last Wednesday, 
and blocks closed at $1.4325, down $.0275. These Wednesday closing prices invert the 
normal situation of blocks being priced a few cents above barrels. 
                                                                                                       
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5425-1.9025       
Brick And/Or Muenster 5#                   : 1.8425-2.2675       
Cheddar 40# Block                          : 1.5700-1.9650       
Monterey Jack 10#                          : 1.8175-2.0225       
Blue 5#                                    : 2.1100-3.0975       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6425-2.5825       
Grade A Swiss Cuts 6 - 9#                  : 2.4925-2.6100      

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