MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  January 25, 2017 (REPORT 4)                        

MIDWEST CHEESE:                                                  

Reports on milk availability for Central cheese producers vary. Some cheesemakers are 
finding available milk on the spot market, and their dedicated milk supplies will 
suffice for the weeks to come. However, others are seeing tighter milk supplies in 
their areas. Following recent trends of readily available milk for most cheesemakers, 
cheese production continues at fully active levels. With most cheddar styles, demand 
has been fair to relatively strong. Pizza cheese producers are reporting fair demand 
during the Super Bowl season. Cheese inventories remain available and some extra 
cheese is being offered on the spot market. Cheese buyers report being sufficiently 
stocked. The DMN National Retail Report-Dairy shows that January 20-26 Midwest ads 
for 8 ounce shred cheese have a weighted average advertised price of $2.16, 6 cents 
below the national average. Midwest prices range from $1.66-$2.50. One year ago, the 
national price was $2.39. For 8 ounce blocks, the Midwest average price is $2.17, 3 
cents below the national average price. Midwest ads are priced from $1.66-$2.50. Last 
year, the national price was $2.33. Midwestern wholesale prices are unchanged for 
Swiss cuts, down $.0375 for process and down $.0150 for all other types. This week, a 
cooperative export assistance program accepted requests for 3.380 million pounds 
(1,533 metric tons) of cheese. So far this year, the program has assisted member 
cooperatives who have contracts to sell 3.431 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 December 2016 were 1.207 billion pounds, 2% above November 
2016 and up 5% from December 2015. American stocks were 4% more, other natural stocks 
were 8% more, and Swiss stocks were the same compared to last year. In the East North 
Central region (Wisconsin, Illinois, Michigan, Indiana and Ohio), American cheese 
stocks at the end of December 2016, were 4% higher than last year and 4% more than 
last month. Other cheese stocks in the East North Central region were 7% higher than 
December 31, 2015 and 1% above November 30, 2016. In the West North Central region 
(Minnesota, Iowa, Missouri, Kansas, Nebraska, South Dakota and North Dakota), 
American cheese stocks at the end of December 2016, were 9% higher than last year, 
while there was no change from last month. Other cheese stocks in the West North 
Central region were 3% higher than December 31, 2015, but 1% below November 30, 2016. 
In CME Group trading Wednesday, barrels closed at $1.4600, down $.1500 from last 
Wednesday and blocks closed at $1.6400, down $.0525.
                                                                 
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#                   : 2.0725-2.4975       
Cheddar 40# Block                          : 1.8000-2.1950       
Monterey Jack 10#                          : 2.0475-2.2525       
Blue 5#                                    : 2.3400-3.3275       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8725-2.8125       
Grade A Swiss Cuts 6 - 9#                  : 2.6125-2.7300 

     
1300CT israel.weber@ams.usda.gov (608)422-8591
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-