MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. October 05, 2016 (REPORT 40) MIDWEST CHEESE: Midwest cheese production is active and running near full capacity when possible. A few cheese plants have scheduled down time for maintenance and repairs this week. Some manufacturers report milk intakes are down. Whether it is a transportation issue, milk production issue or simply an adjustment to milk rebalancing within areas of the region, the available milk is putting some pressure on cheese production volumes. A number of end users say cheese loads have been shorted a little this week as cheese makers juggle orders and production schedules. Market participants expect cheese shipments to resume normal and expected deliveries as milk availability and production rebalances. Domestic retail and food service demand remains strong in advance of the end of year holiday season. The DMN National Retail Report-Dairy shows that September 30-October 6 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $1.62, 69 cents lower than the national average. Midwest prices range from $0.98- $2.00. One year ago, the national price was $2.40. For 8 ounce blocks, the Midwest average price is $1.78, 49 cents below the national average price. Midwest ads are priced from $0.98- $2.50. Last year, the national price was $2.44. Midwestern wholesale prices are unchanged for Swiss cuts, down $.0225 for process, and down $.0425 for all other types. This week, a cooperative export assistance program accepted 10 requests for 1.6 million pounds (726 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 39.7 million pounds of cheese in export markets. The CME Group September 2016 monthly average price for barrels, $1.5415, is down from the last month's average of $1.8110, and down from the monthly average of a year ago, $1.5840. Blocks' September average price, $1.6224, is down from the $1.7826 August monthly average, and down from $1.6605 one year ago. In CME Group trading Wednesday, barrels closed at $1.4500, down $.0300 from last Wednesday and blocks closed at $1.5325, down $.0050. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.5725-1.9325 Brick And/Or Muenster 5# : 1.9050-2.3300 Cheddar 40# Block : 1.6325-2.0275 Monterey Jack 10# : 1.8800-2.0850 Blue 5# : 2.1725-3.1600 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7050-2.6450 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 August Total 50.1 ... TOTAL, JAN - AUG 411.4 - 17 1 Mexico 129.8 - 5 2 South Korea 58.7 - 40 3 Japan 41.4 - 25 4 Australia 22.0 - 23 5 Canada 17.6 - 4 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-