MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  March 15, 2017 (REPORT 11)                         

MIDWEST CHEESE:                                                  

Cheese production in the Midwest is active, keeping pace with readily available 
milk. Even with spot milk as low as $5 under Class III, cheesemakers are turning 
offers away as contractual milk supplies are meeting production needs. The 
challenge for some Midwestern cheese manufacturers is finding a middle ground 
between cheese production and managing cheese inventories, which are reportedly 
long. Demand reports are mixed. Some contacts report steadiness in retail and 
specialty orders following a post-Super Bowl lull. However, some Midwest cheese 
producers report a softness on spot orders, suggesting buyers are holding off 
while cheese prices continue to weaken. The market undertone is unsteady. In CME 
Group trading Wednesday, barrels closed at $1.3750, down $.0750 from last 
Wednesday and blocks closed at $1.3600, down $.0800 from last Wednesday. The DMN 
National Retail Report-Dairy shows that March 10-16 Midwest ads for 8 ounce shred 
cheese have a weighted average advertised price of $2.13, 18 cents below the 
national average. Midwest prices range from $1.48-$2.50. One year ago, the 
national price was $2.29. For 8 ounce blocks, the Midwest average price is $1.97, 
28 cents below the national average price. Midwest ads are priced from $1.48-
$2.50. Last year, the national price was $2.43. Midwestern wholesale prices are 
unchanged for Swiss cuts, but down $.0525 for process and down $.0750 for all 
other types. 
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5150-1.8750       
Brick And/Or Muenster 5#                   : 1.7975-2.2225       
Cheddar 40# Block                          : 1.5250-1.9200       
Monterey Jack 10#                          : 1.7725-1.9775       
Blue 5#                                    : 2.0650-3.0525       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.5975-2.5375       
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-