MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  August 17, 2016 (REPORT 33)                         

MIDWEST CHEESE:

Cheese production varies across the Central region this week. As Class I demand 
grows, some cheese manufacturers are facing dwindling milk supplies. Many 
manufacturers report maximizing current milk intakes and are keeping vats as full 
as possible. Several manufacturers continue to fortify to offset falling milk 
intakes. Spot loads of milk are increasingly difficult to come by and few 
manufacturers report purchasing additional loads of fluid milk. Industry contacts 
feel that overall demand for cheese continues to grow in the Central region. 
Buyers are requesting additional loads outside of contracts. Some suppliers 
report numerous calls from new buyers looking for a variety of cheeses. Market 
participants seem optimistic that cheese demand will continue to grow throughout 
the month. Inventories are mixed in the Central region. Cheddar cheese stocks are 
a little heavy, but have seen some relief over the past few weeks. Inventories 
for curds, fresh cheeses, and provolone are all reportedly light. International 
interest continues to be quiet. The market undertone is steady. The DMN National 
Retail Report-Dairy shows that August 12-18 Midwest ads for 8 ounce shred cheese 
have a weighted average advertised price of $1.89, 36 cents lower than the 
national average. Midwest prices range from $1.49-$2.25. One year ago, the 
national price was $2.35. For 8 ounce blocks, the Midwest average price is $1.99, 
18 cents below the national average price. Midwest ads are priced from $1.49-
$2.50. Last year, the national price was $2.36. This week, a cooperative export 
assistance program accepted requests for 1.506 million pounds of cheese. So far 
this year, the program has accepted assistance requests for 32.161 million pounds 
of cheese. In CME Group trading Wednesday, barrels closed at $1.8650, down $.0150 
from last Wednesday and blocks closed at $1.8200 up $.0300 from last Wednesday.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) 
                                                                 
Process American 5# Loaf                   : 1.9700-2.3300       
Brick And/Or Muenster 5#                   : 2.1675-2.5925       
Cheddar 40# Block                          : 1.8950-2.2900       
Monterey Jack 10#                          : 2.1425-2.3475       
Blue 5#                                    : 2.4350-3.4225       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9675-2.9075       
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-