MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  July 20, 2016 (REPORT 29)                         

MIDWEST CHEESE:

Cheese production is active in the Central region. Milk production is tapering 
off and spot loads of milk are becoming increasingly difficult to come by. Some 
manufacturers are content with the decrease in fluid milk intakes while others 
are actively seeking spot loads and/or condensed skim loads to compensate for any 
fall in intakes. A few manufacturers are choosing to slow manufacturing of other 
commodities and push that milk into cheese production. Demand for cheese is 
strong and growing. Several manufacturers report buyers requesting additional 
loads outside of contracts as well as new buyers looking to make a purchase. 
Processed cheese sales continue to do well as grilling season is at its peak. 
Manufacturers of Italian and fresh type cheese report growing inquiries and 
strong sales. Inventories are mixed. Several weeks of growing sales have aided in 
inventory relief throughout the Central region. Numerous market participants feel 
they are in balance with their current inventory levels. However, active 
production is leading to rebuilding of stocks for some industry contacts. 
International interest is unchanged this week. The market undertone is steady. 
The DMN National Retail Report-Dairy shows that July 15-21 Midwest ads for 8 ounce 
shred cheese have a weighted average advertised price of $1.90, 29 cents lower than 
the national average. Midwest prices range from $1.25-$3.00. One year ago, the 
national price was $2.29. For 8-ounce blocks, the Midwest average price is $2.14, 5 
cents below the national average price. Midwest ads are priced from $1.25-$3.50. Last 
year, the national price was $2.36. This week, a cooperative export assistance 
program accepted requests for 756,186 pounds of cheese. So far this year, the program 
has accepted assistance requests for 29.826 million pounds of cheese. Midwestern 
wholesale prices are unchanged for Swiss cuts, but up $.0425 for process, and up 
$.0375 for all other types. In CME Group trading Wednesday, barrels closed at 
$1.7550, up $.0325 from last Wednesday and blocks closed at $1.6800 up $.0500 
from last Wednesday

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.8225-2.1825       
Brick And/Or Muenster 5#                   : 2.0125-2.4375       
Cheddar 40# Block                          : 1.7400-2.1350       
Monterey Jack 10#                          : 1.9875-2.1925       
Blue 5#                                    : 2.2800-3.2675       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8125-2.7525       
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