MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  January 04, 2017 (REPORT 1)                        

MIDWEST CHEESE:
                                                  
Milk remains available for Midwestern cheese producers. However, milk prices are 
beginning to increase following the discounted holiday influx. Cheesemakers, 
taking advantage of the discounted spot loads of previous weeks, report using 
milk they have on hand. Thus, there were fewer reports of spot purchases of milk 
this week. With available milk, schools returning from break, and football 
playoff season approaching, production is active. Cheese demand, which was slow 
in the last week of 2016, is better than expected this week. Some pizza cheese 
processors report orders are nearly where they would expect them to be in late 
January, prior to the Super Bowl. Following the active holiday production 
schedules, inventories are up a bit this week. The DMN National Retail Report-
Dairy shows that December 30-January 5 Midwest ads for 8 ounce shred cheese have 
a weighted average advertised price of $2.11, 9 cents below the national average. 
Midwest prices range from $1.49-$3.50. One year ago, the national price was 
$2.24. For 8 ounce blocks, the Midwest average price is $1.94, 13 cents below the 
national average price. Midwest ads are priced from $1.49-$3.50. Last year, the 
national price was $2.01. Midwestern wholesale prices are unchanged for Swiss 
cuts, down $.0450 for process and down $.0725 for all other types. The CME Group 
December 2016 monthly average price for barrels, $1.6132, is down from last 
month's average of $1.7424, but up from the monthly average of a year ago, 
$1.4638. Blocks' December average price, $1.7335, is down from the $1.8775 
November monthly average, but up from $1.4616 one year ago. In CME Group trading 
Wednesday, barrels closed at $1.5950, up $.0375 from last Wednesday and blocks 
closed at $1.6600, down $.0075.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6525-2.0125       
Brick And/Or Muenster 5#                   : 2.0300-2.4550       
Cheddar 40# Block                          : 1.7575-2.1525       
Monterey Jack 10#                          : 2.0050-2.2100       
Blue 5#                                    : 2.2975-3.2850       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8300-2.7700       
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-