MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  August 3, 2016 (REPORT 31)                         

MIDWEST CHEESE:

Cheese production is steady to slightly lower this week. Milk production 
continues to fall in the Central region. Several cheese manufacturers are 
choosing not to seek out additional spot loads of milk to make up for drops in 
fluid milk intakes. Other processors are taking measures to fortify and improve 
yields. Manufacturers currently utilizing spot loads of milk are preparing for 
spot load availability to disappear and production slow-downs as educational 
institutions begin to reopen. Although production is tapering off some, 
inventories of aged cheese remain large in the Central region. Fresh cheese, 
processed cheese and cheese curds are all up in sales and manufacturers report 
little to no inventories. Manufacturers and brokers both continue to receive 
calls from buyers seeking loads of several varieties of cheese. Inquiries for 
cheddar and Italian cheeses have grown this week. Several industry contacts 
report increases in sales this week. However, they speculate this may be a case 
of buyers jumping in the market now as they anticipate prices to continue to 
climb.  International interest is light. The market undertone is steady. The DMN 
National Retail Report-Dairy shows that July 29-August 4 Midwest ads for 8 ounce 
shred cheese have a weighted average advertised price of $1.92, 30 cents lower than 
the national average. Midwest prices range from $1.49-$2.00. One year ago, the 
national price was $2.21. For 8 ounce blocks, the Midwest average price is $1.84, 21 
cents below the national average price. Midwest ads are priced from $1.49-$2.50. Last 
year, the national price was $2.22. Midwestern wholesale prices are unchanged for 
Swiss cuts, but up $.0175 for process, and up $.0400 for all other types. The CME 
Group July 2016 monthly average price for barrels, $1.7363, compares with $1.6313 for 
July last year. The July 2016 price for blocks, $1.6613, compares with $1.6659 in 
July last year. In CME Group trading Wednesday, barrels closed at $1.8000, up 
$.0250 from last Wednesday and blocks closed at $1.7600 up $.0400 from last 
Wednesday

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.8675-2.2275       
Brick And/Or Muenster 5#                   : 2.0925-2.5175       
Cheddar 40# Block                          : 1.8200-2.2150       
Monterey Jack 10#                          : 2.0675-2.2725       
Blue 5#                                    : 2.3600-3.3475       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8925-2.8325       
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-