MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  July 13, 2016 (REPORT 28)                         

MIDWEST CHEESE:

Cheese production is active across the Central region. As warm weather prevails 
and the components in milk decrease, manufacturers are making production 
adjustments. Milk production is decreasing as well, but contracted milk intakes 
have not decreased enough to have a substantial impact on planned production for 
many Midwest cheese makers. A few manufacturers do report seeking spot loads of 
milk and/or condensed skim to fill any open spaces in production schedules. Sale 
volumes remain high. Some buyers continue to request additional loads outside of 
contracts. A few market participants note, specifically, that interest in 
processed cheese is growing. Overall, many industry contacts are seeing interest 
in the large majority of cheese varieties increase. Inventories are mixed. 
Several contacts report being comfortable with inventories now that strong sales 
have alleviated some stock pressure. International interest remains light as the 
U.S. dollar gains strength. The market undertone is steady. The DMN National 
Retail Report-Dairy shows that July 8-14 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.15, 15 cents lower than the national average. 
Midwest prices range from $1.88-$2.50. One year ago, the national price was $2.34. 
For 8 ounce blocks, the Midwest average price is $2.12, 21 cents below the national 
average price. Midwest ads are priced from $1.88-$2.50. Last year, the national price 
was $2.28. Midwestern wholesale prices are unchanged for Swiss cuts, but up $.0600 
for process, and up $.0175 for all other types. This week, a cooperative export 
assistance program accepted requests for 972,239 pounds of cheese. So far this year, 
the program has accepted assistance requests for 29.070 million pounds of cheese. In 
CME Group trading Wednesday, barrels closed at $1.7225, up $.0525 from last Wednesday 
and blocks closed at $1.6300, up $.0500 from last Wednesday


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7800-2.1400       
Brick And/Or Muenster 5#                   : 1.9750-2.4000       
Cheddar 40# Block                          : 1.7025-2.0975       
Monterey Jack 10#                          : 1.9500-2.1550       
Blue 5#                                    : 2.2425-3.2300       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7750-2.7150       
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