MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. September 07, 2016 (REPORT 36) MIDWEST CHEESE: Midwest cheese production has slowed somewhat. With the seasonal downturn in milk intakes, manufacturers report discounted spot loads of milk are not as readily available. Processors are hesitant to buy additional milk unless they can get a good deal or unless they need it to meet product commitments. A few manufacturers have scheduled facility downtime in order to get maintenance and repairs completed. Cheese orders are steady. A few cheese makers note an increase in orders from food service over the last week. Retail orders for specialty cheese varieties are also strong. Industry contacts suggest inventories are still a little long, but not to the point of being a concern. Some cheese cutters say they have noticed a little more tightness for cheese blocks. The DMN National Retail Report-Dairy shows that September 2-8 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $1.85, 34 cents lower than the national average. Midwest prices range from $1.28-$2.50. One year ago, the national price was $2.26. For 8 ounce blocks, the Midwest average price is $1.86, 31 cents below the national average price. Midwest ads are priced from $1.28-$2.50. Last year, the national price was $2.14. Midwestern wholesale prices are up $.0525 for Swiss cuts, down $.1550 for process, and down $.0975 for all other types. Dairy Products (NASS) reports total 2016 U.S. cheese production, year to date through July, is 6.98 billion pounds, 2.0 percent above January through July 2015. July 2016 total U.S. cheese production, 1.02 billion pounds, is 2.6 percent above last month. Central total cheese production for July was 453.0 million pounds, 1.3 percent more than last month. For total cheese production and various types of cheese, July 2016 U.S. and Central cheese production compared to July 2015 were as follows: U.S. Central Total + 1.4% - 0.7% American + 0.2% - 1.9% Cheddar - 1.7% - 4.1% Total Italian + 3.2% + 2.0% Mozzarella + 2.5% + 1.2% The CME Group August 2016 monthly average price for barrels, $1.8110, is up from the last month's average of $1.7363, and up from the monthly average of a year ago, $1.6689. Blocks' August average price, $1.7826, is up from the $1.6613 July monthly average, and up from $1.7111 one year ago. In CME Group trading Wednesday, barrels closed at $1.6600, up $.0350 from last Wednesday and blocks closed at $1.7200, up $.0400. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.7250-2.0850 Brick And/Or Muenster 5# : 2.0650-2.4900 Cheddar 40# Block : 1.7925-2.1875 Monterey Jack 10# : 2.0400-2.2450 Blue 5# : 2.3325-3.3200 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8650-2.8050 Grade A Swiss Cuts 6 - 9# : 2.4350-2.5525 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago July Total 52.8 - 6 TOTAL, JAN - JUL 361.4 - 18 1 Mexico 115.9 - 5 2 South Korea 51.4 - 42 3 Japan 38.4 - 26 4 Australia 18.9 - 29 5 Canada 14.8 - 5 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-