MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  April 12, 2017 (REPORT 15)                         

MIDWEST CHEESE:   

Cheese production in the Midwest is active. Some Midwestern cheesemakers have 
cancelled some planned production downtime in order to keep up with the milk surplus. 
Readily available milk continues to flow into cheese vats. Class III spot milk prices 
are unchanged from last week, $1.50 to $5.00 under Class. Some cheese processors are 
hesitant about using stored nonfat dry milk to fortify their cheese because milk is 
so abundant. Cheese order reports vary from steady to strong. Even with some good 
sales reports, some contacts question whether demand will keep up with supply, as 
most reports point to long inventories of both block and barrel cheeses. The cheese 
market tone is uncertain. The DMN National Retail Report-Dairy shows that April 7-13 
Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.07, 
16 cents below the national average. Midwest prices range from $1.67-$2.50. One year ago, 
the national price was $2.27. For 8 ounce blocks, the Midwest average price is $1.99, 12 
cents below the national average price. Midwest ads are priced from $0.97-$3.00. Last 
year, the national price was $2.42. In CME Group trading Wednesday, barrels closed at 
$1.4275, down $0.0300 from last Wednesday and blocks closed at $1.4750, down $0.0250 
from last Wednesday. Dairy Products (NASS) reports total U.S. cheese production, for 
February 2017, was 941.7 million pounds, 1.4 percent below February 2016 and 9.9 percent 
below January 2017. Central total cheese production for February 2017 was 429.6 million 
pounds, 8.6 percent lower than January 2017. For total cheese and various types of 
cheese, February 2017 U.S. and Central cheese production percentage changes compared to 
February 2016 were as follows:

	U.S.	Central
Total	- 1.4%	+ 1.2%
American	+ 1.7%	+ 3.3%
Cheddar	+ 6.9%	+ 7.0%
Total Italian	- 4.0% 	- 0.2%
Mozzarella	- 5.1%	- 1.3%

Midwestern wholesale prices are down $0.0700 for Swiss cuts, up $.0550 for process 
and up $.0250 for all other types.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5550-1.9150       
Brick And/Or Muenster 5#                   : 1.8625-2.2875       
Cheddar 40# Block                          : 1.5900-1.9850       
Monterey Jack 10#                          : 1.8375-2.0425       
Blue 5#                                    : 2.1300-3.1175       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6625-2.6025       
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-