MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  February 15, 2017 (REPORT 7)                       

MIDWEST CHEESE:                                                  

Cheese makers in the Midwest continue to see readily available milk. Most cheese 
producers are hesitant to purchase spot milk, as contract and current supplies are 
sufficient for their needs. Production rates are corresponding to milk supply. 
Producers who cut back on production to manage growing cheese inventories are 
preparing to increase production schedules, as milk continues to flow in. The market 
undertone is uncertain. Overall demand of cheese is slow. The spring holiday ordering 
season has yet to pick up for some process cheese producers. Retail and food service 
sales are also reportedly lower. Some contacts suggest the instability of the cheese 
market is causing buyer apprehension. Block and barrel inventories are long. In CME 
Group trading Wednesday, barrels closed at $1.6500, down $.0350 from last Wednesday and 
blocks closed at $1.6050, down $.0150 from last Wednesday. The DMN National Retail 
Report-Dairy shows that February 10-16 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.03, 33 cents below the national average. Midwest 
prices range from $1.88-$2.50. One year ago, the national price was $2.22. For 8 ounce 
blocks, the Midwest average price is $1.98, 28 cents below the national average price. 
Midwest ads are priced from $1.50-$2.50. Last year, the national price was $2.22. 
Midwestern wholesale prices are unchanged for Swiss cuts, up $.0875 for process, but down 
$.1125 for all other types. This week, a cooperative export assistance program accepted 
requests for 2.048 million pounds (929 metric tons) of cheese. So far this year, the 
program has assisted member cooperatives who have contracts to sell 7.027 million pounds 
of cheese in export markets. 
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7700-2.1300       
Brick And/Or Muenster 5#                   : 2.0025-2.4275       
Cheddar 40# Block                          : 1.7300-2.1250       
Monterey Jack 10#                          : 1.9775-2.1825       
Blue 5#                                    : 2.2700-3.2575       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8025-2.7425       
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-