MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. May 25, 2016 (REPORT 21) MIDWEST CHEESE: The Central region is at the peak of spring flush and cheese manufacturers are running full schedules to manage high levels of milk intakes. A few manufacturers report small decreases in sales outside of contracts. However, they are optimistic for sales in upcoming weeks. Other industry contacts feel sales are steady to increasing. Several cheese manufacturers report larger demand for processed varieties of cheese. Even though sales are helping move cheese out of stocks, high production levels are filling inventory spaces right back up. The eight ounce cheese block price increased slightly on Midwest retail shelves this week. A few industry contacts noted this and feel a lower price point on these cheese goods could help move a considerable amount of cheese out of storage. Some industry participants feel buyers are holding off on making purchases to see where cheese prices will move in the near future. Blocks and barrels saw some recovery in prices Monday and Tuesday on the CME Group. The market undertone is mixed. There is some report of growing international interest in cheese. The DMN National Retail Report-Dairy shows that May 20-26 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.24, 1 cent higher than the national average. Midwest prices range from $1.88-$2.50. One year ago, the national price was $2.39. For 8 ounce blocks, the Midwest average price is $2.13, 19 cents below the national average price. Midwest ads are priced from $1.88- $2.50. Last year, the national price was $2.30. Midwestern wholesale prices are unchanged for Swiss cuts, but up $.0625 for process, and up $.0225 for all other types. This week, a cooperative export assistance program accepted requests for 2.776 million pounds of cheese. So far this year, the program has accepted assistance requests for 22.970 million pounds of cheese. According to the NASS Cold Storage report, the East North Central region (Wisconsin, Illinois, Michigan, Indiana and Ohio) American cheese stocks on April 30, 2016, were 116% of last year, and 101% of last month. East North Central region other cheese stocks were 109% of April 30, 2015 and 102% of March 31, 2016. Total U.S. natural cheese stocks on April 30, 2016, were 12% higher than a year ago and 2% above the previous month. In CME Group trading Wednesday, barrels closed at $1.3925, up $.0300 from last Wednesday and blocks closed at $1.3400, up $.0250. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.4475-1.8075 Brick And/Or Muenster 5# : 1.6775-2.1025 Cheddar 40# Block : 1.4050-1.8000 Monterey Jack 10# : 1.6525-1.8575 Blue 5# : 1.9450-2.9325 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.4775-2.4175 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