MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. February 08, 2017 (REPORT 6) MIDWEST CHEESE: Fluid milk is readily available for Midwestern cheese producers. Some cheese makers report backing away from buying extra milk as they are using supplies on hand, while others are considering selling extra milk as opposed to increasing cheese inventories. Reports on cheese production from Midwestern producers vary. Some are continuing to run at fully active production levels, matching the abundant milk supply. Other producers, however, are cutting back on production in order to manage growing cheese stocks. Contacts report demand for pizza cheese is seasonally slow. Food service and retail orders are down as well. Some contacts expect light demand until March, when spring holiday and summer orders begin. Inventories of blocks and barrels remain long. The market undertone remains uncertain. In CME Group trading Wednesday, barrels closed at $1.6850, up $.1075 from last Wednesday and blocks closed at $1.6200, down $.1300. The DMN National Retail Report-Dairy shows that February 3-9 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $1.94, 29 cents below the national average. Midwest prices range from $1.49-$2.50. One year ago, the national price was $2.18. For 8 ounce blocks, the Midwest average price is $1.82, 33 cents below the national average price. Midwest ads are priced from $0.99-$2.00. Last year, the national price was $2.07. Midwestern wholesale prices are up $.2150 for Swiss cuts, up $.1250 for process and up $.0950 for all other types. This week, a cooperative export assistance program accepted requests for 557,770 pounds (253 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 4.979 million pounds of cheese in export markets. The CME Group January 2017 monthly average price for barrels, $1.5573, is down from the last month's average of $1.6132, but up from the monthly average of a year ago, $1.4842. Blocks' January average price, $1.6866, is down from the $1.7335 December monthly average, but up from $1.4757 one year ago. The Foreign Agricultural Service (FAS) reports that December 2016 U.S. cheese and curd exports totaled 63.1 million pounds, a 16% increase from a year ago. Dairy Products (NASS) reports total 2016 U.S. cheese production, for January through December 2016, was 12.073 billion pounds, 2.0 percent above January through December 2015. December 2016 total U.S. cheese production, 1.050 billion pounds, is 3.0 percent above November 2016. Central total cheese production for December 2016 was 470.6 million pounds, 3.1 percent more than November 2016. For total cheese and various types of cheese, December 2016 U.S. and Central cheese production percentage changes compared to December 2015 were as follows: U.S. Central Total + 1.3% + 1.1% American + 3.9% + 3.8% Cheddar + 3.5% + 2.9% Total Italian - 1.1% - 0.8% Mozzarella - 1.2% - 4.1% WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.6825-2.0425 Brick And/Or Muenster 5# : 2.1150-2.5400 Cheddar 40# Block : 1.8425-2.2375 Monterey Jack 10# : 2.0900-2.2950 Blue 5# : 2.3825-3.3700 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9150-2.8550 Grade A Swiss Cuts 6 - 9# : 2.8275-2.9450 1300CT israel.weber@ams.usda.gov (608)422-8601 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-