MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  October 19, 2016 (REPORT 42)                       

MIDWEST CHEESE:                                                  

Midwest cheese makers say their cheese production has increased slightly. Milk is readily 
available and components are on the rise. Although some cheese plants are running near 
full capacity, there is still time to make repairs or conduct maintenance. A few 
processors say if spot loads of milk were more available, and at good prices, they could 
run a few more loads through the vats. Cheese orders are steadily increasing for holiday 
retail sales. Some industry contacts suggest that cheese was somewhat undervalued prior 
to the recent jump of block and barrel cheese prices on the CME Group trading. A few 
manufacturers took advantage of the lower prices and buyer interest to clear stocks. A 
number of processors describe their inventories as comfortable. The DMN National Retail 
Report-Dairy shows that October 14-20 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.36, 6 cents higher than the national average. 
Midwest prices range from $1.67-$2.99. One year ago, the national price was $2.25. For 8 
ounce blocks, the Midwest average price is $1.85, 60 cents below the national average 
price. Midwest ads are priced from $1.67-$1.99. Last year, the national price was $2.30. 
Midwestern wholesale prices are unchanged for Swiss cuts, down $.0150 for process, and 
down $.0075 for all other types. This week, a cooperative export assistance program 
accepted requests for 2.3 million pounds (1,047 metric tons) of cheese. So far this year, 
the program has assisted member cooperatives who have contracts to sell 42.3 million 
pounds of cheese in export markets. In CME Group trading Wednesday, barrels closed at 
$1.5900, up $.1325 from last Wednesday and blocks closed at $1.6800, up $.1625. 


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5575-1.9175       
Brick And/Or Muenster 5#                   : 1.8975-2.3225       
Cheddar 40# Block                          : 1.6250-2.0200       
Monterey Jack 10#                          : 1.8725-2.0775       
Blue 5#                                    : 2.1650-3.1525       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6975-2.6375       
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-