MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. August 10, 2016 (REPORT 32) MIDWEST CHEESE: Midwest milk production continues to fall and cheese manufacturers are adjusting production schedules based on milk intakes. Several processors report the desire to run busier production schedules but lack the milk to do so. Manufacturers bringing in spot loads of milk in recent weeks report more difficulty finding spot load availability this week. Some manufacturers continue to fortify as a means to maintain production. Demand is mixed this week. A few manufacturers report strong orders from various outlets while other producers feel buyers' interest lost a little steam this week. Orders for mozzarella and provolone varieties are strong. Industry contacts anticipate the demand for mozzarella will continue to grow as football season kicks off and pizza orders pick up. Cheese curd sales remain strong as the region is in peak fair season. Inventories for cheese curds and Italian type cheeses are light while cheddar cheese stocks are reportedly heavier. Several manufacturers report being balanced in their inventories. The market undertone is steady. The DMN National Retail Report-Dairy shows that August 5-11 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $1.93, 36 cents lower than the national average. Midwest prices range from $1.49-$3.00. One year ago, the national price was $2.34. For 8 ounce blocks, the Midwest average price is $1.94, 20 cents below the national average price. Midwest ads are priced from $1.49-$3.00. Last year, the national price was $2.29. This week, a cooperative export assistance program accepted requests for 174,165 pounds of cheese. So far this year, the program has accepted assistance requests for 30.091 million pounds of cheese. Midwestern wholesale prices are down $.1000 for Swiss cuts, but up $.0475 for process, and up $.0450 for all other types. Dairy Products (NASS) reports total 2016 U.S. cheese production, year to date through June, is 5.96 billion pounds, 2.1 percent above January through June 2015. June 2016 total U.S. cheese production, 9.87 million pounds, is 1.5 percent above last month. Central total cheese production for June was 446.3 million pounds, 1.3 percent less than last month. For total cheese production and various types of cheese, June 2016 U.S. and Central cheese production compared to June 2015 were as follows: U.S. Central Total +1.1% +1.2% American -0.2% -0.9% Cheddar -3.5% -6.0% Total Italian +2.2% +3.1% Mozzarella +1.9% +3.1% In CME Group trading Wednesday, barrels closed at $1.8800, up $.0800 from last Wednesday and blocks closed at $1.7900 up $.0300 from last Wednesday 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago June Total 50.8 - 13 TOTAL, JAN - JUN 308.5 - 20 1 Mexico 101.2 - 3 2 South Korea 42.9 - 47 3 Japan 33.2 - 26 4 Australia 16.3 - 36 5 Canada 12.9 - 2 WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.9150-2.2750 Brick And/Or Muenster 5# : 2.1375-2.5625 Cheddar 40# Block : 1.8650-2.2600 Monterey Jack 10# : 2.1125-2.3175 Blue 5# : 2.4050-3.3925 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9375-2.8775 Grade A Swiss Cuts 6 - 9# : 2.3825-2.5000 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-