MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  May 18, 2016 (REPORT 20)                         

MIDWEST CHEESE:
 
Cheese vats remain full throughout the Central region. Many manufacturers report 
running full schedules to manage high fluid milk intakes. Recent downward price 
trends on the CME Group have resulted in increasing sales for a group of industry 
contacts. However, barrels saw an increase in price on the CME Group the last few 
days. Some speculate this could be a result of an increase in demand for 
processed cheeses used for grilling. A large quantity of storage facilities are 
at or near capacity. Recent strength in sales has helped free up space in 
inventories for a few industry participants. Contracts continue to be filled, but 
several manufacturers report little demand outside of contracts. Overall, it is a 
mixed market. The DMN National Retail Report-Dairy shows that May 13-19 Midwest 
ads for 8 ounce shred cheese have a weighted average advertised price of $2.03, 
15 cents lower than the national average. Midwest prices range from $1.25-$2.50. 
One year ago, the national price was $2.43. For 8 ounce blocks, the Midwest 
average price is $1.89, 23 cents below the national average price. Midwest ads 
are priced from $1.25-$2.49. Last year, the national price was $2.39. Midwestern 
wholesale prices are unchanged for Swiss cuts, but down $.0550 for process, and 
down $.0475 for all other types. This week, a cooperative export assistance 
program accepted requests for 1.186 million pounds of cheese. So far this year, 
the program has accepted requests to assist in the sale of 20.194 million pounds 
of cheese. In CME Group trading Wednesday, barrels closed at $1.3625, up $.0625 
from last Wednesday and blocks closed at $1.3150, up $.0150. 


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

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

April Quota            16.3          +  7.6           5.5
TOTAL, JAN - APR
   High Tier           22.6          + 94.7           ...
   Quota               75.6          + 28.5          25.3



WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.3850-1.7450       
Brick And/Or Muenster 5#                   : 1.6550-2.0800       
Cheddar 40# Block                          : 1.3825-1.7775       
Monterey Jack 10#                          : 1.6300-1.8350       
Blue 5#                                    : 1.9225-2.9100       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.4550-2.3950       
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