MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  May 11, 2016 (REPORT 19)                         

MIDWEST CHEESE:

Milk production in the Central region remains strong, keeping cheese 
manufacturers running full schedules. Contracts continue to be filled and sales 
are steady. However, a handful of manufacturers report increases in sales. There 
is still a considerable amount of cheese stocks in the region. The recent upturn 
in sales has returned some inventories to comfortable levels. Although there are 
available loads of milk, a few processors are not willing to purchase extra milk 
without strong buyer interest. Cheese makers seem determined to work through 
inventories and avoid rebuilding stocks, even if they have available storage 
capacity. Several producers report pushing some inventory into shred cheese. 
Cheese prices are declining and block and barrel prices are inverted on the CME. 
Industry contacts feel this is causing an unsettled feeling in the market. The DMN 
National Retail Report-Dairy shows that May 6-12 Midwest ads for 8 ounce shred cheese 
have a weighted average advertised price of $2.00, 24 cents lower than the national 
average. Midwest prices range from $0.99-$2.50. One year ago, the national price 
was $2.39. For 8 ounce blocks, the Midwest average price is $1.87, 24 cents below 
the national average price. Midwest ads are priced from $0.99-$2.79. Last year, 
the national price was $2.39. Midwestern wholesale prices are up $.0100 for Swiss 
cuts, but down $.0550 for process, and down $.0525 for all other types. Dairy 
Products (NASS) reports total 2016 U.S. cheese production, year to date through 
March, is 2.988 billion pounds, 2.9 percent above January through March 2015. 
March 2016 total U.S. cheese production, 1.03 billion pounds, is 7.8 percent 
above last month. Central total cheese production for March was 459.1 million 
pounds, 8.2 percent more than last month. This week, a cooperative export 
assistance program accepted requests for 668,001 pounds of cheese. So far this year, 
the program has accepted requests to sell 19.008 million pounds of cheese. In CME 
Group trading Wednesday, barrels closed at $1.3000, down $.0525 from last 
Wednesday and blocks closed at $1.3000, down $.0250. 

For total cheese production and various types of cheese, March 2016 U.S. and 
Central cheese production compared to March 2015 were as follows:

	U.S.	Central
Total	+1.8%	+3.5%
American	+0.9%	+1.0%
Cheddar	-0.9%	-2.0%
Total Italian	+4.3%	+6.2%
Mozzarella	+4.8%	+6.7%


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.4400-1.8000       
Brick And/Or Muenster 5#                   : 1.7025-2.1275       
Cheddar 40# Block                          : 1.4300-1.8250       
Monterey Jack 10#                          : 1.6775-1.8825       
Blue 5#                                    : 1.9700-2.9575       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.5025-2.4425       
Grade A Swiss Cuts 6 - 9#                  : 2.5025-2.6200 
     

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