MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. March 08, 2017 (REPORT 10) MIDWEST CHEESE: Midwestern cheesemakers report the flow of milk into cheese vats is not slowing down. Spot milk offers continue to come in, at discounted prices, but most cheese contacts are not taking extra milk at this time. Cheese production remains active, keeping pace with increasing contractual milk usage. Demand reports are mixed. Some mozzarella and other pizza cheese producers are seeing steadily growing sales, although the uptick is later in the season than usual. However, some process and cheddar producers are reporting slower sales and say buyers are waiting to see if cheese prices continue downward. CME cheese prices slipped early in the week, but continue to maintain a block to barrel price margin that cheese contacts find comfortable. Cheese inventories, both barrel and block, are long. In CME Group trading Wednesday, barrels closed at $1.4500, down $.0150 from last Wednesday and blocks closed at $1.4400, down $.0500 from last Wednesday. The DMN National Retail Report-Dairy shows that March 3-9 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $1.99, 22 cents below the national average. Midwest prices range from $1.49-$2.79. One year ago, the national price was $2.28. For 8 ounce blocks, the Midwest average price is $1.99, 16 cents below the national average price. Midwest ads are priced from $1.49-$2.79. Last year, the national price was $2.29. Dairy Products (NASS) reports total U.S. cheese production, for January 2017, was 1.040 billion pounds, 3.7 percent above January 2016, but 1.2 percent below December 2016. Central total cheese production for January 2017 was 462.0 million pounds, 2.3 percent lower than December 2016. For total cheese and various types of cheese, January 2017 U.S. and Central cheese production percentage changes compared to January 2016 were as follows: U.S. Central Total + 3.7% + 2.8% American + 3.0% + 5.6% Cheddar + 3.5% + 4.7% Total Italian + 3.8% + 0.8% Mozzarella + 4.5% - 1.1% The CME Group February 2017 monthly average price for barrels, $1.6230, is up from the $1.5573 January monthly average and up from the monthly average of a year ago, $1.4573. Blocks' February average price, $1.6199, is down from the $1.6866 January monthly average, but up from $1.4744 one year ago. This week, a cooperative export assistance program accepted requests for 4.616 million pounds (2,094 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 15.579 million pounds of cheese in export markets. The Foreign Agricultural Service (FAS) reports that January 2017 U.S. cheese and curd exports totaled 50.0 million pounds, a 3% increase from a year ago. Midwestern wholesale prices are up $.0700 for Swiss cuts, but down $.0800 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 : 1.5675-1.9275 Brick And/Or Muenster 5# : 1.8725-2.2975 Cheddar 40# Block : 1.6000-1.9950 Monterey Jack 10# : 1.8475-2.0525 Blue 5# : 2.1400-3.1275 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6725-2.6125 Grade A Swiss Cuts 6 - 9# : 2.8975-3.0150 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-