MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  July 27, 2016 (REPORT 30)                         

MIDWEST CHEESE:

Midwest cheese production is active. Some manufacturers report falling milk 
intakes and are running one to two less vats a week. Other processors are seeking 
out additional spot loads of milk to maintain full production schedules. While 
manufacturers anticipated spot loads of milk to be difficult to come by at this 
point in the season, they report being able to find spot loads of milk with 
little difficulty. Sales are strong for many market participants. Several 
manufacturers of specialty cheese varieties report difficulty keeping up with 
demand and are sold out. American and processed varieties of cheese are also 
doing well. Industry contacts attribute this to the grilling and fair season. Due 
to high levels of sales, contacts report having to turn away buyers interested in 
fresh loads of cheese due to lack of stocks. However, inventories in the Midwest 
are still long. The majority of these stocks are cheeses with some age on them. 
Some manufacturers are choosing to manage large aged cheese stocks by blending 
them with fresher cheese. The market undertone is steady. The DMN National Retail 
Report-Dairy shows that July 22-28 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.28, 2 cents higher than the national average. 
Midwest prices range from $2.00-$2.99. One year ago, the national price was $2.43. 
For 8 ounce blocks, the Midwest average price is $2.54, 41 cents above the national 
average price. Midwest ads are priced from $2.00-$3.99. Last year, the national price 
was $2.27. Midwestern wholesale prices are unchanged for Swiss cuts, but up $.0275 
for process, and up $.0400 for all other types. According to the NASS Cold Storage 
report, the East North Central region (Wisconsin, Illinois, Michigan, Indiana and 
Ohio) American cheese stocks on June 30, 2016, were 12% higher than last year, and 1% 
above last month. East North Central region other cheese stocks were 8% higher than 
June 30, 2015 and 1% above May 31, 2016. Total U.S. natural cheese stocks on June 30, 
2016, were 10% higher than a year ago and slightly above the previous month. In CME 
Group trading Wednesday, barrels closed at $1.7750, up $.0200 from last Wednesday 
and blocks closed at $1.7200 up $.0400 from last Wednesday

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.8500-2.2100       
Brick And/Or Muenster 5#                   : 2.0525-2.4775       
Cheddar 40# Block                          : 1.7800-2.1750       
Monterey Jack 10#                          : 2.0275-2.2325       
Blue 5#                                    : 2.3200-3.3075       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8525-2.7925       
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-