MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  March 01, 2017 (REPORT 9)                       

MIDWEST CHEESE:                                                  

Milk continues to be abundant for Midwest region cheese producers. Some cheesemakers 
expect discounted milk prices in the near term, and are buying spot milk when the price 
is favorable. Cheese production is steady to active. Midwestern cheesemakers are trying 
to maintain cheese production, yet manage increasing inventory levels. Although demand 
varied from producer to producer last week, this week cheese contacts report demand is 
generally improving. The seasonal lull has begun to fade and orders are slowly trending 
upward. Pizza cheese producers are also seeing a demand turnaround, with orders edging up 
compared to the past two to three weeks. The market tone is unsteady. CME block prices 
are slightly higher than barrels, which some contacts suggest is a sign of stability. In 
CME Group trading Wednesday, barrels closed at $1.4650, down $.1050 from last Wednesday 
and blocks closed at $1.4900, down $.0200 from last Wednesday. The DMN National Retail 
Report-Dairy shows that February 24-March 2 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.04, 8 cents below the national average. Midwest 
prices range from $1.49-$2.79. One year ago, the national price was $2.26. For 8 ounce 
blocks, the Midwest average price is $1.82, 24 cents below the national average price. 
Midwest ads are priced from $0.99-$2.50. Last year, the national price was $2.25. 
According to the NASS Cold Storage report, U.S. stocks of cheese (total natural) at the 
end of January 2017 were 1.233 billion pounds, 3% above December 2016 and up 5% from 
January 2016. American stocks were 6% more, other natural stocks were 2% more, while 
Swiss stocks were 1% below last year. In the East North Central region (Wisconsin, 
Illinois, Michigan, Indiana and Ohio), American cheese stocks at the end of January 2017, 
were 8% higher than last year and 6% more than last month. Other cheese stocks in the 
East North Central region were 3% higher than January 2016 and unchanged from December 
2016. In the West North Central region (Minnesota, Iowa, Missouri, Kansas, Nebraska, 
South Dakota and North Dakota), American cheese stocks at the end of January 2017, were 
6% higher than last year and 1% higher than last month. Other cheese stocks in the West 
North Central region were 5% lower than January 2016 and 3% below December 2016. This 
week, a cooperative export assistance program accepted requests for 2.588 million pounds 
(1,174 metric tons) of cheese. So far this year, the program has assisted member 
cooperatives who have contracts to sell 10.962 million pounds of cheese in export 
markets. Midwestern wholesale prices are unchanged for Swiss cuts, down $.0875 for 
process and down $.0550 for all other types. 
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6475-2.0075       
Brick And/Or Muenster 5#                   : 1.9100-2.3350       
Cheddar 40# Block                          : 1.6375-2.0325       
Monterey Jack 10#                          : 1.8850-2.0900       
Blue 5#                                    : 2.1775-3.1650       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7100-2.6500       
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-