MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  February 22, 2017 (REPORT 8)                       

MIDWEST CHEESE:

Milk is abundant for cheesemakers in the Midwest this week. Cheese production is active. 
Cheese producers are trying to balance their inventories while maintaining production 
levels that coincide with the surplus milk receipts. Demand reports vary somewhat. Some 
cheese manufacturers report fluctuations in demand week by week, inconsistent with past 
years. Other producers report a general slowdown in demand, characteristic of this time 
of year. Some cheese producers are reporting that buyers are viewing the CME barrel to 
block inversion as a sign of instability on the market. Blocks, which have typically 
hovered slightly above barrels, have been lagging behind barrels since early February. 
Inventories of blocks and barrels are long. In CME Group trading Wednesday, barrels 
closed at $1.5700, down $.0800 from last Wednesday and blocks closed at $1.5100, down 
$.0950 from last Wednesday. The DMN National Retail Report-Dairy shows that February 17-
23 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of 
$2.29, 2 cents below the national average. Midwest prices range from $1.75-$2.79. One 
year ago, the national price was $2.37. For 8 ounce blocks, the Midwest average price is 
$2.19, 11 cents below the national average price. Midwest ads are priced from $1.75-
$2.49. Last year, the national price was $2.32. This week, a cooperative export 
assistance program accepted requests for 1.347 million pounds (611 metric tons) of 
cheese. So far this year, the program has assisted member cooperatives who have contracts 
to sell 8.374 million pounds of cheese in export markets. Midwestern wholesale prices are 
unchanged for Swiss cuts, down $.0350 for process and down $.0375 for all other types. 
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7350-2.0950       
Brick And/Or Muenster 5#                   : 1.9650-2.3900       
Cheddar 40# Block                          : 1.6925-2.0875       
Monterey Jack 10#                          : 1.9400-2.1450       
Blue 5#                                    : 2.2325-3.2200       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7650-2.7050       
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-