MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. December 07, 2016 (REPORT 49) MIDWEST CHEESE: Cheese production in the Midwest is active and manufacturers report milk volumes are generally adequate to meet most processing needs. A few processors are finding a spot load here and there, but not at the discounted prices seen during the Thanksgiving holiday weekend. Cheesemakers are in the final push to get orders out the door and on store shelves before the winter holidays. Orders, especially for retail demand, are strong. Orders for food service and deli are a little lighter. Industry contacts expect the brisk sales activity to continue through the end of the week and then somewhat subside over the next few weeks due to the passing holiday season. The DMN National Retail Report-Dairy shows that December 2-8 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $1.82, 50 cents below the national average. Midwest prices range from $1.50-$2.00. One year ago, the national price was $2.32. For 8 ounce blocks, the Midwest average price is $2.22, 3 cents below the national average price. Midwest ads are priced from $1.50-$3.50. Last year, the national price was $2.24. Midwestern wholesale prices are down $.0575 for Swiss cuts, down $.0150 for process, and down $.1000 for all other types. This week, a cooperative export assistance program accepted requests for 1.785 million pounds (710 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 48.9 million pounds of cheese in export markets. Dairy Products (NASS) reports total 2016 U.S. cheese production, year to date through October, is 9.998 billion pounds, 1.8 percent above January through October 2015. October 2016 total U.S. cheese production, 1.033 billion pounds, is 4.8 percent above last month. Central total cheese production for October was 463.7 million pounds, 5.4 percent more than last month. For total cheese production and various types of cheese, October 2016 U.S. and Central cheese production compared to October 2015 were as follows: U.S. Central Total + 0.5% + 1.6% American + 1.4% + 2.6% Cheddar + 0.2% - 1.0% Total Italian + 1.0% + 2.2% Mozzarella - 0.4% - 0.9% The CME Group November 2016 monthly average price for barrels, $1.7424, is up from the last month's average of $1.5295, and up from the monthly average of a year ago, $1.5305. Blocks' November average price, $1.8775, is up from the $1.6035 October monthly average, and up from $1.6176 one year ago. In CME Group trading Wednesday, barrels closed at $1.5850, down $.0500 from last Wednesday and blocks closed at $1.7300, down $.0300. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.7300-2.0900 Brick And/Or Muenster 5# : 2.1625-2.5875 Cheddar 40# Block : 1.8900-2.2850 Monterey Jack 10# : 2.1375-2.3425 Blue 5# : 2.4300-3.4175 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9625-2.9025 Grade A Swiss Cuts 6 - 9# : 2.7875-2.9050 2016 U.S. Cheese and Curd Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago October Total 54.7 + 5 TOTAL, JAN - OCT 514.7 - 13 1 Mexico 161.1 - 4 2 South Korea 74.9 - 32 3 Japan 49.0 - 25 4 Australia 27.6 - 19 5 Canada 23.5 - 2 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-