MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  August 31, 2016 (REPORT 35)                        

MIDWEST CHEESE:                                                  

Midwest cheese manufacturers report milk has gotten a little tighter and spot loads of 
milk are harder to find. Although a few processors are occasionally buying an extra load 
of milk, others are more cautious. There is some concern about what the cheese price will 
do. A few cheese makers have backed off on their production runs and are opting to 
fortify the cheese make process when possible. Inventories are long industry-wide for 
American and Italian cheese, but manufacturers say they are managing their inventories 
closely and, in some cases, have been able to lower their cheese holdings. Customers are 
taking regular cheese orders, but are not asking for extra. Food service and retail 
demand are steady. The DMN National Retail Report-Dairy shows that August 26-September 1 
Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.04, 
26 cents lower than the national average. Midwest prices range from $1.66-$3.00. One year 
ago, the national price was $2.46. For 8 ounce blocks, the Midwest average price is 
$2.07, 10 cents below the national average price. Midwest ads are priced from $1.66-
$3.00. Last year, the national price was $2.34. Midwestern wholesale prices are unchanged 
for Swiss cuts, down $.0775 for process, and down $.0300 for all other types. This week, 
a cooperative export assistance program accepted 10 requests for 1.98 million pounds (899 
metric tons) of cheese. So far this year, the program has assisted member cooperatives 
who have contracts to sell 33.5 million pounds of cheese in export markets. In CME Group 
trading Wednesday, barrels closed at $1.6250, down $.1550 from last Wednesday and blocks 
closed at $1.6800, down $.1000. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.8800-2.2400       
Brick And/Or Muenster 5#                   : 2.1625-2.5875       
Cheddar 40# Block                          : 1.8900-2.2850       
Monterey Jack 10#                          : 2.1375-2.3425       
Blue 5#                                    : 2.4300-3.4175       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9625-2.9025       
Grade A Swiss Cuts 6 - 9#                  : 2.3825-2.5000       


1300CT mike.bandli@ams.usda.gov(608)557-7010
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-