MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  April 05, 2017 (REPORT 14)                         

MIDWEST CHEESE:                                                                                                           

Milk is readily available for cheese producers in the Midwest. Spot milk prices 
headed into cheese vats were reported from $1.50 to $5.00 under Class. A number of 
Midwestern cheese processors report utilizing contractually supplied and/or 
internally sourced milk, opting for spot milk only when necessary. Once again, some 
remodeling and maintenance at cheese plants have other Midwestern producers taking on 
the extra milk as cooperating cheese plants work out milk exchanges. With the 
exception of maintenance and updates, most cheese plants continue production at 
levels corresponding to the ample milk supply. Some specialty cheesemakers report 
fully active production currently. Specialty and traditional style cheese orders are 
starting to pick up. Pizza cheese producers are also reporting an increase in buyer 
interest. Some cheese contacts suggest customers are buying before cheese prices 
increase further. Generally, cheese inventories are long. The market undertone is 
uncertain, with signs of near term stability. The DMN National Retail Report-Dairy 
shows that March 31-April 6 Midwest ads for 8 ounce shred cheese have a weighted 
average advertised price of $2.11, 9 cents below the national average. Midwest prices 
range from $1.67-$2.50. One year ago, the national price was $2.36. For 8 ounce 
blocks, the Midwest average price is $2.09, 10 cents below the national average 
price. Midwest ads are priced from $1.67-$2.50. Last year, the national price was 
$2.15. The CME Group March 2017 monthly average price for barrels, $1.4072, is down 
from the February average of $1.6230, and down from the monthly average of a year 
ago, $1.4530. Blocks' March average price, $1.4342, is down from the $1.6199 February 
monthly average, and down from $1.4877 one year ago. This week, a cooperative export 
assistance program accepted requests for 2.01 million pounds (911 metric tons) of 
cheese. So far this year, the program has assisted member cooperatives who have 
contracts to sell 23.49 million pounds of cheese in export markets. In CME Group 
trading Wednesday, barrels closed at $1.4575, up $.0875 from last Wednesday and 
blocks closed at $1.5000, up $.0550 from last Wednesday.

2017 U.S. Cheese and Curd Exports (USDA-FAS)

                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

February             58.1            +  8

TOTAL, JAN - FEB    108.1            +  6
 1 Mexico            29.0            - 17
 2 South Korea       16.7            + 17
 3 Australia         10.2            + 88
 4 Japan              8.9            - 19
 5 Canada             4.8            + 52


Midwestern wholesale prices are unchanged for Swiss cuts, up $.0150 for process and 
up $.0400 for all other types.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5000-1.8600       
Brick And/Or Muenster 5#                   : 1.8375-2.2625       
Cheddar 40# Block                          : 1.5650-1.9600       
Monterey Jack 10#                          : 1.8125-2.0175       
Blue 5#                                    : 2.1050-3.0925       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6375-2.5775       
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-