MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  April 26, 2017 (REPORT 17)                         

MIDWEST CHEESE:                                                  

With the exception of some plant maintenance and updating, cheese production 
continues to match abundant milk supplies. Cheese production schedules, in some 
plants, are at 100 percent. Milk continues to flow into cheese vats. Some cheese 
manufacturers who have primarily used contractually supplied milk are taking 
advantage of spot market opportunities. Milk going into Class III has been 
reported at $1.50 to $5.50 under Class. Cheese demand is picking up in the 
Midwest. Some producers report that orders have noticeably improved in the past 
two to three weeks. Some pizza cheese producers also report gains in demand in 
recent weeks, but describe sales as slightly quieter than they were this time 
last year. Cheese inventories are long. The cheese market tone is uncertain.                                                                 
The DMN National Retail Report-Dairy shows that April 21-27 Midwest ads for 8 
ounce shred cheese have a weighted average advertised price of $2.12, 7 cents 
below the national average. Midwest prices range from $1.50-$2.50. One year ago, 
the national price was $2.37. For 8 ounce blocks, the Midwest average price is 
$2.07, 12 cents below the national average price. Midwest ads are priced from 
$1.79-$3.50. Last year, the national price was $2.32. In CME Group trading 
Wednesday, barrels closed at $1.4200, up $0.0200 from last Wednesday and blocks 
closed at $1.5425, up $0.0675 from last Wednesday. According to the NASS Cold 
Storage report, U.S. stocks of cheese (total natural) at the end of March 2017 
were 1.293 billion pounds, 3% above February 2017 and up 8% from March 2016. 
American stocks were 11% more, other natural stocks were 5% more, and Swiss 
stocks were 6% higher than last year. In the East North Central region 
(Wisconsin, Illinois, Michigan, Indiana and Ohio), American cheese stocks at the 
end of March 2017, were 13% higher than last year and 4% more than last month. 
Other cheese stocks in the East North Central region were 7% higher than March 
2016 and 2% more than last month. In the West North Central region (Minnesota, 
Iowa, Missouri, Kansas, Nebraska, South Dakota and North Dakota), American cheese 
stocks at the end of March 2017, were 23% higher than last year and 10% higher 
than last month. Other cheese stocks in the West North Central region were 5% 
lower than March 2016 and 1% below February 2017. This week, a cooperative export 
assistance program accepted requests for 740,753 pounds (336 metric tons) of 
cheese. So far this year, the program has assisted member cooperatives who have 
contracts to sell 29.164 million pounds of cheese in export markets. Midwestern 
wholesale prices are unchanged for Swiss cuts, down $.0150 for process, but up 
$.0225 for all other types.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5075-1.8675       
Brick And/Or Muenster 5#                   : 1.8550-2.2800       
Cheddar 40# Block                          : 1.5825-1.9775       
Monterey Jack 10#                          : 1.8300-2.0350       
Blue 5#                                    : 2.1225-3.1100       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6550-2.5950       
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-