MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. May 10, 2017 (REPORT 19) MIDWEST CHEESE: Milk remains available for cheesemakers in the Midwestern United States. Spot milk prices ranged from $4.00 to $6.00 under Class III. Some contacts reported that milk offers were starting to slow down, and expectations of milk intakes at current prices are nearing their end. Cheese production continues apace. Some plants remain on 6-7 day work schedules. Demand, both in retail and food service, is generally strong. Both pizza cheese and traditional cheesemakers report that orders are increasing week over week. The cheese market tone has improved. Some cheese contacts view the current CME block price, which jumped $0.1100 on Friday of last week, as an indication of market growth. Cheese barrel inventories are reportedly long. Producers of block cheese report varying inventory levels. The DMN National Retail Report-Dairy shows that May 5-11 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.31, 9 cents above the national average. Midwest prices range from $1.66-$3.00. One year ago, the national price was $2.24. For 8 ounce blocks, the Midwest average price is $2.08, 8 cents below the national average price. Midwest ads are priced from $0.99- $3.00. Last year, the national price was $2.11. In CME Group trading Wednesday, barrels closed at $1.4600, up $.0600 from last Wednesday and blocks closed at $1.6000, up $.1200 from last Wednesday. This week, a cooperative export assistance program accepted requests for 1.0 million pounds (461 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 30.7 million pounds of cheese in export markets. Midwestern wholesale prices are up $.0125 for Swiss cuts, down $.0025 for process and down $.0250 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# : 1.8700-2.2950 Cheddar 40# Block : 1.5975-1.9925 Monterey Jack 10# : 1.8450-2.0500 Blue 5# : 2.1375-3.1250 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6700-2.6100 Grade A Swiss Cuts 6 - 9# : 2.8400-2.9575 Dairy Products (NASS) reports total U.S. cheese production, for March 2017, was 1.062 billion pounds, 3.3 percent above March 2016 and 12.7 percent above February 2017. Central total cheese production for March 2017 was 488.5 million pounds, 13.2 percent higher than February 2017. For total cheese and various types of cheese, March 2017 U.S. and Central cheese production percentage changes compared to March 2016 were as follows: U.S. Central Total + 3.3% + 6.2% American + 3.5% + 8.2% Cheddar + 8.0% +14.1% Total Italian + 2.2% + 3.5% Mozzarella + 0.9% + 0.4% 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago March 68.7 + 22 TOTAL, JAN - MAR 176.7 + 12 1 Mexico 51.8 - 5 2 South Korea 27.9 + 29 3 Japan 15.6 - 15 4 Australia 15.2 + 95 5 Canada 7.2 + 29 2017 U.S. Cheese and Curd Imports (USDA-FAS) 2017 Imports % Change From (Million Lb.) Last Month March Imports TOTAL Cheese and Curd (H.S. Code 0406) 35.2 + 32 Cheese, Except Fresh (H.S. Code 040690) 30.7 + 34 Fresh Cheese (H.S. Code 040610) 2.4 + 16 Cheese, Processed (H.S. Code 040630) 1.5 + 10 Cheese, Blue-Veined (H.S. Code 040640) 0.6 + 16 Cheese, Grated (H.S. Code 040620) 0.1 +168 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - MAR 93.3 - 22 1 Italy 15.9 - 12 2 France 10.6 - 4 3 New Zealand 10.1 - 43 4 Netherlands 6.3 + 10 5 Spain 5.8 - 2 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-