MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  December 21, 2016 (REPORT 51)                      

MIDWEST CHEESE:                                                  

Midwestern cheese producers report another strong week in orders. Pizza cheese has slowed 
a bit as more traditional holiday type cheeses are in higher demand. Pizza cheese 
producers report they are shifting their production to cheeses with a longer shelf life 
until Super Bowl preparations begin. The trend of longer barrel inventories continues, as 
blocks tighten and are in higher demand for contract deals throughout 2017. Milk supply 
reports have been varied. Some cheese producers are buying spot loads at discounted 
rates, while others report a scarcity of milk. Most report that milk supplies should be 
up next week with the upcoming school breaks, which will divert the milk from bottling 
plants to the cheese vats. Producers who report finding milk at discounted rates plan on 
running on a full schedule throughout the holidays, taking advantage of bargain milk 
prices. The DMN National Retail Report-Dairy shows that December 16-22 Midwest ads for 8 
ounce shred cheese have a weighted average advertised price of $2.11, 3 cents below the 
national average. Midwest prices range from $1.50-$3.00. One year ago, the national price 
was $2.27. For 8 ounce blocks, the Midwest average price is $2.14, 9 cents below the 
national average price. Midwest ads are priced from $1.25-$3.00. Last year, the national 
price was $2.22. Midwestern wholesale prices are unchanged for Swiss cuts, up $.1000 for 
process and up $.0350 for all other types. This week, a cooperative export assistance 
program accepted requests for 228,178 pounds (104 metric tons) of cheese. So far this 
year, the program has assisted member cooperatives who have contracts to sell 51.6 
million pounds of cheese in export markets. In CME Group trading Wednesday, barrels 
closed at $1.5675, down $.1475 from last Wednesday and blocks closed at $1.7000, down 
$.0575.


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7775-2.1375       
Brick And/Or Muenster 5#                   : 2.1325-2.5575       
Cheddar 40# Block                          : 1.8600-2.2550       
Monterey Jack 10#                          : 2.1075-2.3125       
Blue 5#                                    : 2.4000-3.3875       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9325-2.8725       
Grade A Swiss Cuts 6 - 9#                  : 2.7875-2.9050       


1300CT israel.weber@ams.usda.gov(608)557-7004
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-