MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  December 28, 2016 (REPORT 52)                      

MIDWEST CHEESE: 

Midwestern cheese producers are reporting cheese demand is beginning to slow. Some types 
of specialty cheeses are maintaining strength, but orders of retail and food service 
cheeses are seeing a seasonal slowdown. Buyers pushing to keep end-of-year inventories 
low is a factor in slowing order strength. However, cheesemakers expect an uptick prior 
to the Super Bowl season beginning in late January. Barrel inventories remain long, while 
blocks are still a bit tighter. Reports on fluid milk availability vary; some contacts 
report a balanced inventory of milk, while others report surplus milk and are finding 
spot loads at discounted rates. The DMN National Retail Report-Dairy shows that December 
23-29 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of 
$2.11, 4 cents above the national average. Midwest prices range from $1.77-$2.50. One 
year ago, the national price was $2.27. For 8 ounce blocks, the Midwest average price is 
$2.10, 6 cents below the national average price. Midwest ads are priced from $1.25-$2.49. 
Last year, the national price was $2.19. Midwestern wholesale prices are unchanged for 
Swiss cuts, down $.0800 for process and down $.0300 for all other types. This week, a 
cooperative export assistance program accepted requests for 436,515 pounds (198 metric 
tons) of cheese. So far this year, the program has assisted member cooperatives who have 
contracts to sell 50.3 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 November 2016 
were 1.180 billion pounds, 3% below October 2016, but up 3% from November 2015. American 
stocks were 2% more, other natural stocks were 4% more, and Swiss stocks were up 10% 
compared to last year. In the East North Central region (Wisconsin, Illinois, Michigan, 
Indiana and Ohio), American cheese stocks at the end of November 2016, were 2% higher 
than last year, but 3% less than last month. Other cheese stocks in the East North 
Central region were 4% higher than November 30, 2015, but 3% below October 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 November 2016, were 6% 
higher than last year, while there was no change from last month. Other cheese stocks in 
the West North Central region were 4% higher than November 30, 2015, but 3% below October 
31, 2016. In CME Group trading Wednesday, barrels closed at $1.5575, down $.0100 from 
last Wednesday and blocks closed at $1.6675, down $.0325.
                                             
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6975-2.0575       
Brick And/Or Muenster 5#                   : 2.1025-2.5275       
Cheddar 40# Block                          : 1.8300-2.2250       
Monterey Jack 10#                          : 2.0775-2.2825       
Blue 5#                                    : 2.3700-3.3575       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9025-2.8425       
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-