MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  January 11, 2017 (REPORT 2)                        

MIDWEST CHEESE:                                                  

As colleges and universities return from the holiday break, abundant milk is flowing from 
bottling plants into cheese vats. Some contacts report an expectation of readily 
available milk this week into next week, but then a slowdown around the end of January. 
With the available milk and a steady to relatively strong cheese demand, production 
levels are fully active. Food service demand is a bit slow this time of year, as contacts 
expected. However, most producers report steady to strong retail sales, particularly in 
packaged ready-to-eat cheese varieties. Producers of process cheese are also reporting a 
strengthening demand. Inventories of aged barrels and blocks remain readily available, 
while fresh blocks continue to tighten. In CME Group trading Wednesday, barrels 
closed at $1.6400, up $.0450 from last Wednesday and blocks closed at $1.7350, up 
$.0750. The Foreign Agricultural Service (FAS) reports that November 2016 U.S. cheese and 
curd exports totaled 55.0 million pounds, a 9% increase from a year ago. The DMN National 
Retail Report-Dairy shows that January 6-12 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.05, 10 cents below the national average. Midwest 
prices range from $1.75-$2.49. One year ago, the national price was $2.17. For 8 ounce 
blocks, the Midwest average price is $1.90, 23 cents below the national average price. 
Midwest ads are priced from $1.49-$2.49. Last year, the national price was $2.19. 
Midwestern wholesale prices are down $.1750 for Swiss cuts, up $.0275 for process and up 
$.0025 for all other types. Dairy Products (NASS) reports total 2016 U.S. cheese 
production, year to date through November, is 11.0 billion pounds, 2.0 percent above 
January through November 2015. November 2016 total U.S. cheese production, 1.011 billion 
pounds, is 2.6 percent below October 2016. Central total cheese production for November 
was 455.5 million pounds, 2.1 percent less than last month. For total cheese production 
and various types of cheese, November 2016 U.S. and Central cheese production compared to 
November 2015 were as follows:

	U.S.	Central

Total	+ 2.7%	+ 3.3%
American	+ 3.9%	+ 3.5%
Cheddar	+ 5.9%	+ 7.3%
Total Italian	+ 2.6%	+ 5.2%
Mozzarella	+ 1.6%	+ 1.6%
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6800-2.0400       
Brick And/Or Muenster 5#                   : 2.0325-2.4575       
Cheddar 40# Block                          : 1.7600-2.1550       
Monterey Jack 10#                          : 2.0075-2.2125       
Blue 5#                                    : 2.3000-3.2875       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8325-2.7725       
Grade A Swiss Cuts 6 - 9#                  : 2.6125-2.7300  


2016 U.S. Cheese and Curd Exports (USDA-FAS)

                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

November Total       55.0            +  9
TOTAL, JAN - NOV    569.7            - 12
1 Mexico            179.8            -  1
2 South Korea        82.9            - 29
3 Japan              54.5            - 23
4 Australia          29.9            - 16
5 Canada             26.5            +  1

   


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-