MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. November 09, 2016 (REPORT 45) MIDWEST CHEESE: Midwest cheese makers say milk intakes are holding steady and many cheese plants are running at or near full capacity. Cheese processors are eager to make cheese as fast as they can to keep up with holiday orders. Retail demand is steady for both cut and wrap cheese and process cheese. Some contacts say the warm fall weather has helped extend grilling season longer than typical. Industry contacts suggest the desire for fresh cheese is strong and driving market prices. Although consumer demand has been good, some manufacturers note wholesalers are more hesitant due to the recent price increases. Buyers are willing to take regular contract shipments, but are taking a wait and see approach to any additional loads of cheese. Ample cheese inventories are available for barrels and some varieties of block cheese. The DMN National Retail Report-Dairy shows that November 4-10 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.21, 2 cents above the national average. Midwest prices range from $1.50-$2.99. One year ago, the national price was $2.40. For 8 ounce blocks, the Midwest average price is $2.10, 2 cents below the national average price. Midwest ads are priced from $2.00-$2.49. Last year, the national price was $2.40. Midwestern wholesale prices are up $.1850 for Swiss cuts, up $.2100 for process, and up $.1675 for all other types. Dairy Products (NASS) reports total 2016 U.S. cheese production, year to date through September, is 8.96 billion pounds, 1.9 percent above January through September 2015. September 2016 total U.S. cheese production, 981.2 million pounds, is 1.8 percent below last month. Central total cheese production for September was 436.1 million pounds, 2.6 percent less than last month. For total cheese production and various types of cheese, September 2016 U.S. and Central cheese production compared to September 2015 were as follows: U.S. Central Total + 1.6% + 1.6% American - 0.3% - 0.3% Cheddar - 0.5% + 0.8% Total Italian + 4.4% + 4.4% Mozzarella + 3.8% + 1.8% The CME Group October 2016 monthly average price for barrels, $1.5295, is down from the last month's average of $1.5415, and down from the monthly average of a year ago, $1.6072. Blocks' October average price, $1.6035, is down from the $1.6224 September monthly average, and down from $1.6674 one year ago. In CME Group trading Wednesday, barrels closed at $1.8300, up $.0725 from last Wednesday and blocks closed at $1.9425, up $.1200. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.8675-2.2275 Brick And/Or Muenster 5# : 2.2000-2.6250 Cheddar 40# Block : 1.9275-2.3225 Monterey Jack 10# : 2.1750-2.3800 Blue 5# : 2.4675-3.4550 Mozzarella 5 - 6# (Low Moisture, Part Skim): 2.0000-2.9400 Grade A Swiss Cuts 6 - 9# : 2.8450-2.9625 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago September Total 48.6 - 1 TOTAL, JAN - SEP 460.0 - 15 1 Mexico 144.1 - 5 2 South Korea 66.6 - 36 3 Japan 44.7 - 26 4 Australia 24.8 - 20 5 Canada 20.6 - 1 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-