MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  August 24, 2016 (REPORT 34)                         

MIDWEST CHEESE:

Midwest cheese makers are filling vats and running schedules as full as possible. 
After several weeks of decreases in milk intakes, some manufacturers feel the 
fall in production has begun to level off. A few industry contacts report being 
short on milk, but are able to find spot loads when needed. Demand is mixed. Some 
market participants feel sales slowed some this week following several weeks of 
active orders outside of contracts. Other manufacturers feel demand continues to 
grow ahead of the holiday season. Several manufacturers report high volumes of 
calls from buyers looking for cheese. However, only some manufacturers can meet 
their needs. Cheese curd sales continue to soar as the fair and carnival season 
continues. Inventories vary and widely depend on the variety of cheese. Cheddar 
and American cheese inventories are mostly long. Some manufacturers are blending 
cheese with some age on it with fresher cheese in an effort to manage aged cheese 
stocks. International inquiries remain light. The market undertone is steady to 
firming. The DMN National Retail Report-Dairy shows that August 19-25 Midwest ads for 
8 ounce shred cheese have a weighted average advertised price of $2.19, 10 cents 
lower than the national average. Midwest prices range from $1.33-$2.99. One year ago, 
the national price was $2.34. For 8 ounce blocks, the Midwest average price is $1.91, 
21 cents below the national average price. Midwest ads are priced from $1.33-$2.00. 
Last year, the national price was $2.31. Midwestern wholesale prices are unchanged 
for Swiss cuts, down $.0125 for process, but up $.0250 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 July 31, 2016, were 10 percent 
higher than last year, and 2 percent above last month. East North Central region 
other cheese stocks were 6 percent higher than July 31, 2015 and 1 percent above June 
30, 2016. Total U.S. natural cheese stocks on July 31, 2016, were 10 percent higher 
than a year ago and 2 percent above the previous month. In CME Group trading 
Wednesday, barrels closed at $1.7800, down $.0850 from last Wednesday and blocks 
closed at $1.7800 down $.0400 from last Wednesday.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.9575-2.3175       
Brick And/Or Muenster 5#                   : 2.1925-2.6175       
Cheddar 40# Block                          : 1.9200-2.3150       
Monterey Jack 10#                          : 2.1675-2.3725       
Blue 5#                                    : 2.4600-3.4475       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9925-2.9325       
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-