MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  October 26, 2016 (REPORT 43)                       

MIDWEST CHEESE:                                                  

Midwest cheese makers say milk is in good balance with production needs. With steady milk 
production and increasing components, cheese yields are improving. Spot loads of milk are 
available, but many cheese makers are content to use the milk available to them and only 
buy the milk if they have room and if the price is right. A few manufacturers are noting 
warehouses seem full as processors ramp up production for the holidays. Contacts think 
this will resolve itself once seasonal demand overtakes supply. Cheese inventories are a 
little heavy for barrels but in better balance for blocks. Retail domestic consumer 
demand is solid, but seasonally slowing for process cheese. The DMN National Retail 
Report-Dairy shows that October 21-27 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.33, 7 cents higher than the national average. 
Midwest prices range from $1.66-$2.50. One year ago, the national price was $2.29. For 8 
ounce blocks, the Midwest average price is $2.69, 37 cents above the national average 
price. Midwest ads are priced from $1.66-$3.50. Last year, the national price was $2.16. 
Midwestern wholesale prices are unchanged for Swiss cuts, up $.1025 for process, and up 
$.1250 for all other types. This week, a cooperative export assistance program accepted 
requests for 136,687 pounds (62 metric tons) of cheese. So far this year, the program has 
assisted member cooperatives who have contracts to sell 42.4 million pounds of cheese in 
export markets. According to the NASS Cold Storage report, U.S. stocks of cheese (total 
natural) at the end of September 2016 were 1.238 billion pounds, unchanged from August 
2016, but up 7% from September 2015. American stocks were 6% more, other natural stocks 
were 9% more, and Swiss stocks were up 14% compared to last year. In the East North 
Central region (Wisconsin, Illinois, Michigan, Indiana and Ohio) American cheese stocks 
at the end of September 2016, were 8% higher than last year, but unchanged from last 
month. Other cheese stocks in the East North Central region were 10% higher than 
September 30, 2015, and 1% above August 31, 2016. In the West North Central region 
(Minnesota, Iowa, Missouri, Kansas, Nebraska, South Dakota and North Dakota) American 
cheese stocks at the end of September 2016, were 9% higher than last year, but 2% below 
last month. Other cheese stocks in the West North Central region were 3% higher than 
September 30, 2015, but unchanged from August 31, 2016. In CME Group trading Wednesday, 
barrels closed at $1.5575, down $.0325 from last Wednesday and blocks closed at $1.6550, 
down $.0250. 


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6600-2.0200       
Brick And/Or Muenster 5#                   : 2.0225-2.4475       
Cheddar 40# Block                          : 1.7500-2.1450       
Monterey Jack 10#                          : 1.9975-2.2025       
Blue 5#                                    : 2.2900-3.2775       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8225-2.7625       
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-