MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  December 14, 2016 (REPORT 50)                      

MIDWEST CHEESE:                                                  

Midwestern cheese makers report orders are still strong. Some manufacturers 
anticipated a slowdown in orders this week, but that has yet to be fully 
realized. A few cheese processors say they are slightly behind on orders or have 
been able to draw down on cheese stocks somewhat. Inventories for barrels remain 
a little long. Some barrel manufacturers suggest they have sold a few loads of 
milk to bottling operations in lieu of making more barrel cheese. These 
manufacturers are hopeful that the spread between barrel and block prices will 
narrow and improve the economics of barrel cheese production. Milk supplies are 
generally well balanced right now and extra spot loads are not widely offered. 
The DMN National Retail Report-Dairy shows that December 9-15 Midwest ads for 8 
ounce shred cheese have a weighted average advertised price of $2.02, 9 cents 
below the national average. Midwest prices range from $1.88-$2.50. One year ago, 
the national price was $2.20. For 8 ounce blocks, the Midwest average price is 
$1.98, 8 cents above the national average price. Midwest ads are priced from 
$1.88-$2.00. Last year, the national price was $2.29. Midwestern wholesale prices 
unchanged for Swiss cuts, down $.0525 for process, and down $.0650 for all other 
types. This week, a cooperative export assistance program accepted requests for 
2.518 million pounds (1,142 metric tons) of cheese. So far this year, the program 
has assisted member cooperatives who have contracts to sell 51.4 million pounds 
of cheese in export markets. In CME Group trading Wednesday, barrels closed at 
$1.7150, up $.1300 from last Wednesday and blocks closed at $1.7575, up $.0275. 


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6775-2.0375       
Brick And/Or Muenster 5#                   : 2.0975-2.5225       
Cheddar 40# Block                          : 1.8250-2.2200       
Monterey Jack 10#                          : 2.0725-2.2775       
Blue 5#                                    : 2.3650-3.3525       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8975-2.8375       
Grade A Swiss Cuts 6 - 9#                  : 2.7875-2.9050       


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-