MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  July 6, 2016 (REPORT 27)                         

MIDWEST CHEESE:

Cheese production is picking up this week in the Central region. Several cheese 
manufacturers took advantage of the holiday weekend and brought in additional 
loads of milk. Those manufacturers not looking to fill schedules are seeing a 
drop in milk production for their contracted loads of milk, but still feel milk 
intakes are sufficient for the level of production they are at. Components are 
beginning to drop as temperatures and humidity rise, but processors have yet to 
see a change in yields. Some cheese manufacturers seem optimistic this week, 
showing less reservation about running full production schedules. This may be 
attributed to reports of growing sales following the holiday weekend. Numerous 
manufacturers report increased calls from buyers seeking additional loads of 
cheese. However, a few of these producers do not have the additional cheese 
stocks to sell and are having to turn down potential sales. Other market 
participants continue to manage long inventories of aged cheese varieties. Cheese 
curd sales are seeing seasonal growth in sales. The market undertone mixed. The 
DMN National Retail Report-Dairy shows that July 1-7 Midwest ads for 8 ounce 
shred cheese have a weighted average advertised price of $1.83, 33 cents lower 
than the national average. Midwest prices range from $1.29-$2.79. One year ago, 
the national price was $2.45. For 8 ounce blocks, the Midwest average price is 
$1.95, 28 cents below the national average price. Midwest ads are priced from 
$0.99-$2.79. Last year, the national price was $2.45. Midwestern wholesale prices 
are down $0.0125 for Swiss cuts, but up $.0875 for process, and up $.0700 for all 
other types. The CME Group June 2016 monthly average price for barrels, $1.5301, 
compares with $1.6690 for June last year. The June 2016 price for blocks, 
$1.5005, compares with $1.7052 in June last year. In CME Group trading Wednesday, 
barrels closed at $1.6700, up $.0100 from last Wednesday and blocks closed at 
$1.5800, unchanged from last Wednesday. Dairy Products (NASS) reports total 2016 
U.S. cheese production, year to date through May, is 4.973 billion pounds, 2.2 
percent above January through May 2015. May 2016 total U.S. cheese production, 
998.1 million pounds, is 0.7 percent above last month. Central total cheese 
production for May was 449.7 million pounds, 0.7 percent more than last month.

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

	U.S.	Central
Total	+1.2%	+1.9%
American	-1.9%	-1.8%
Cheddar	-2.0%	-4.9%
Total Italian	+5.2%	+6.8%
Mozzarella	+4.4%	+5.3%
  

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7200-2.0800       
Brick And/Or Muenster 5#                   : 1.9575-2.3825       
Cheddar 40# Block                          : 1.6850-2.0800       
Monterey Jack 10#                          : 1.9325-2.1375       
Blue 5#                                    : 2.2250-3.2125       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7575-2.6975       
Grade A Swiss Cuts 6 - 9#                  : 2.4825-2.6000       

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