MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  October 12, 2016 (REPORT 41)                       

MIDWEST CHEESE:                                                  

Midwest cheese makers report milk is readily available. Some say it has hit the low point 
for the year and is starting to come back up. Components are also increasing. Cheese 
production is below full capacity. A number of processors say they could run more milk 
through the vats, but are hesitant to buy the extra loads of milk unless priced 
favorably. Demand for natural cheese entering retail cut and wrap facilities has remained 
strong. However, due to the seasonal slowdown of grilling and lagging impacts of market 
prices, demand for process cheese is currently a little soft. Cheese inventories are 
long, but do not seem to be of major concern to industry contacts. For the most part, the 
stocks are well balanced by age and variety. And cheese industry contacts expect the 
inventories to be drawn down through domestic Q4 holiday demand and through an 
improvement of export market opportunities. The DMN National Retail Report-Dairy shows 
that October 7-13 Midwest ads for 8 ounce shred cheese have a weighted average advertised 
price of $2.09, 16 cents lower than the national average. Midwest prices range from 
$1.66-$3.00. One year ago, the national price was $2.47. For 8 ounce blocks, the Midwest 
average price is $1.94, 32 cents below the national average price. Midwest ads are priced 
from $1.66-$2.50. Last year, the national price was $2.37. Midwestern wholesale prices 
are up $.2250 for Swiss cuts, unchanged for process and for all other types. This week, a 
cooperative export assistance program accepted 6 requests for 1.2 million pounds (542 
metric tons) of cheese. So far this year, the program has assisted member cooperatives 
who have contracts to sell 40.4 million pounds of cheese in export markets. Dairy 
Products (NASS) reports total 2016 U.S. cheese production, year to date through August, 
is 7.97 billion pounds, 1.9 percent above January through August 2015. August 2016 total 
U.S. cheese production, 990.0 million pounds, is 2.2 percent below last month. Central 
total cheese production for August was 446.4 million pounds, 1.7 percent less than last 
month. For total cheese production and various types of cheese, August 2016 U.S. and 
Central cheese production compared to August 2015 were as follows:

	U.S.	Central
Total	+ 1.2%	+ 1.4%
American	- 1.4%	- 2.9%
Cheddar	  ...	- 5.1%
Total Italian	+ 5.0%	+ 6.0%
Mozzarella	+ 4.4%	+ 2.9%

In CME Group trading Wednesday, barrels closed at $1.4575, up $.0075 from last Wednesday 
and blocks closed at $1.5175, down $.0150. 

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#                  : 2.6600-2.7775       


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-