MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  May 4, 2016 (REPORT 18)                         

MIDWEST CHEESE:

Cheese vats throughout the Midwest are getting little to no rest as high volumes of milk 
intakes show little sign of slowing. Cheese production is steady to increasing. Last 
week, the CME Group average cheese price for both blocks and barrels saw a decrease. This 
change in price may be contributing to the increase in sales some manufacturers are 
reporting. This movement of cheese seems to be giving some relief to the inventory 
pressure felt across the Central region. A handful of cheese producers report being 
content with their current stock levels. However, other processors have seen a slowdown 
in the market and believe buyers are holding out to see if prices will continue to drop. 
Overall, the market undertone is unsettled. The DMN National Retail Report-Dairy shows 
that April 29-May 5 Midwest ads for 8 ounce shred cheese have a weighted average 
advertised price of $1.81, 63 cents lower than the national average. Midwest prices range 
from $1.49-$1.99. One year ago, the national price was $2.34. For 8 ounce blocks, the 
Midwest average price is $1.81, 52 cents below the national average price. Midwest ads 
are priced from $1.49-$1.99. Last year, the national price was $2.27. Midwestern 
wholesale prices are unchanged for Swiss cuts, but down $.0250 for process, and down 
$.0475 for all other types. This week, a cooperative export assistance program accepted 
requests for 1.232 million pounds of cheese. So far this year, the program has accepted 
requests to sell 18.340 million pounds of cheese. The CME Group April 2016 monthly 
average price for barrels, $1.4231, compares with $1.6135 for April last year. The April 
2016 price for blocks, $1.4194, compares with $1.5890 in April last year. In CME Group 
trading Wednesday, barrels closed at $1.3525, down $.0275 from last Wednesday and blocks 
closed at $1.3250, down $.0375. 


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.4950-1.8550       
Brick And/Or Muenster 5#                   : 1.7550-2.1800       
Cheddar 40# Block                          : 1.4825-1.8775       
Monterey Jack 10#                          : 1.7300-1.9350       
Blue 5#                                    : 2.0225-3.0100       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.5550-2.4950       
Grade A Swiss Cuts 6 - 9#                  : 2.4925-2.6100 


2016 U.S. Cheese and Curd Exports (USDA-FAS)

                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

March Total          56.2            - 26

TOTAL, JAN - MAR    158.4            - 18
1 Mexico             54.8            + 10
2 South Korea        21.6            - 52
3 Japan              18.3            - 20
4 Australia           7.8            - 32
5 Canada              5.6            - 16

     

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