MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  April 20, 2016 (REPORT 16)                         

MIDWEST CHEESE:
 
Central cheese production continues to be very active. Many plant operators report 
running full schedules to match the seasonally high levels of milk intakes. This is 
resulting in storage facilities filling up quickly. Although many central producers feel 
sales are keeping up with the high production and products continue to move, a small 
number of manufacturers have reported difficulties moving cheese. Buyers are still making 
purchases, but seem to be less enthusiastic about the purchase. A few plant expansion 
projects are experiencing setbacks and will not be finished by projected deadlines. As a 
result, these manufacturers are pushing back some milk supply contracts made for the 
upcoming months. The DMN National Retail Report-Dairy shows that April 15-21 Midwest ads 
for 8 ounce shred cheese have a weighted average advertised price of $2.42, 8 cents lower 
than the national average. Midwest prices range from $1.98-$2.99. One year ago, the 
national price was $2.30. For 8 ounce blocks, the Midwest average price is $2.24, 9 cents 
below the national average price. Midwest ads are priced from $1.79-$2.99. Last year, the 
national price was $2.22. This week, a cooperative export assistance program accepted 
requests for 668,001 million pounds of cheese. So far this year, the program has accepted 
requests to sell 14,643 million pounds of cheese. In the Midwest, wholesale prices are 
down $.0125 for process, and down $.0100 for cheddar block, cuts, and Monterey Jack. 
Swiss cut wholesale prices are unchanged this week. In CME Group trading Wednesday, 
barrels closed at $1.45, up $.0225 from last Wednesday and blocks closed at $1.44, up 
$.0125. 

                                   
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5150-1.8750       
Brick And/Or Muenster 5#                   : 1.8000-2.2250       
Cheddar 40# Block                          : 1.5275-1.9225       
Monterey Jack 10#                          : 1.7750-1.9800       
Blue 5#                                    : 2.0675-3.0550       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6000-2.5400       
Grade A Swiss Cuts 6 - 9#                  : 2.4925-2.6100       

       
       2016 U.S. Cheese Imports (USDA-FAS)

                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota

March Quota            20.9          + 15.6           7.0

TOTAL, JAN - MAR
    High Tier           10.9          + 32.7           ...
    Quota               59.3          + 35.8          19.8




1300CT amy.l.schmitz@ams.usda.gov
(608) 557-7004
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