MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  May 17, 2017 (REPORT 20)                           

MIDWEST CHEESE:                                                  

There is no shortage of milk for cheesemakers in the Midwest region. Some cheese 
producers continue to take on spot milk, at prices ranging from $3.00 to $6.00 
under Class, whereas others report using internal supplies. Cheese production 
continues actively, keeping in line with milk supplies. Block supplies vary by 
producer. Barrel inventories are long, and producers are pushing to clear some 
aged product. Process cheese producers are reporting slight increases in sales, 
whereas traditional and pizza cheese demand has increased noticeably. Both barrel 
and block prices on the CME market have seen large increases in recent weeks. 
There is some concern regarding the widening price gap, as block price gains have 
outpaced those of barrels. Some contacts suggest a stable market depends on a 
narrow block to barrel price variance. The DMN National Retail Report-Dairy shows 
that May 12-18 Midwest ads for 8 ounce shred cheese have a weighted average 
advertised price of $2.08, 23 cents below the national average. Midwest prices 
range from $1.50-$3.29. One year ago, the national price was $2.18. For 8 ounce 
blocks, the Midwest average price is $2.05, 20 cents below the national average 
price. Midwest ads are priced from $1.50-$3.00. Last year, the national price was 
$2.12. In CME Group trading Wednesday, barrels closed at $1.5000, up $.0400 from last 
Wednesday and blocks closed at $1.6700, up $.0700 from last Wednesday. This week, a 
cooperative export assistance program accepted requests for 930,351 pounds (422 
metric tons) of cheese. So far this year, the program has assisted member 
cooperatives who have contracts to sell 31.6 million pounds of cheese in export 
markets. Midwestern wholesale prices are unchanged for Swiss cuts, up $.0725 for 
process and up $.1075 for all other types.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5875-1.9475       
Brick And/Or Muenster 5#                   : 1.9775-2.4025       
Cheddar 40# Block                          : 1.7050-2.1000       
Monterey Jack 10#                          : 1.9525-2.1575       
Blue 5#                                    : 2.2450-3.2325       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7775-2.7175       
Grade A Swiss Cuts 6 - 9#                  : 2.8400-2.9575       

   
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-