MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  May 24, 2017 (REPORT 21)                           

MIDWEST CHEESE:

Cheese production is active in the Midwest. Milk is available, and milk suppliers 
report that orders from cheese producers have ramped up this week. Most spot milk 
price reports are similar to previous weeks, ranging from $3.00 to $5.00 under Class. 
However, there were a few spot milk loads taken in at Class, due to urgent and/or 
timely needs. Cheese demand reports are up across the region. Process cheese 
manufacturers report seeing an uptick in retail demand, as grilling season has begun. 
Pizza and traditional cheese manufacturers also report that sales are better than 
expected. Even with increased demand, there are some concerns regarding long barrel 
inventories. Block inventory reports range from balanced to long. The market 
undertone has improved. Even so, cheese contacts suggest the large CME price gap in 
favor of blocks is not beneficial for a healthy cheese market. In CME Group trading 
Wednesday, barrels closed at $1.4625, down $.0375 from last Wednesday and blocks closed 
at $1.6650, down $.0050 from last Wednesday. The DMN National Retail Report-Dairy shows 
that May 19-25 Midwest ads for 8 ounce shred cheese have a weighted average 
advertised price of $1.97, 21 cents below the national average. Midwest prices range 
from $1.67-$2.50. One year ago, the national price was $2.23. For 8 ounce blocks, the 
Midwest average price is $1.98, 28 cents below the national average price. Midwest 
ads are priced from $1.77-$2.50. Last year, the national price was $2.32. According 
to the NASS Cold Storage report, U.S. stocks of cheese (total natural) at the end of 
April 2017 were 1.334 billion pounds, 3% above March 2017 and up 10% from April 2016. 
American stocks were 14% more, other natural stocks were 5% more, and Swiss stocks 
were 10% higher than last year. In the East North Central region (Wisconsin, 
Illinois, Michigan, Indiana and Ohio), American cheese stocks at the end of April 
2017, were 19% higher than last year and 6% more than last month. Other cheese stocks 
in the East North Central region were 7% higher than April 2016 and 1% 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 April 2017, were 
21% higher than last year and 4% higher than last month. Other cheese stocks in the 
West North Central region were 3% higher than April 2016 and 3% above March 2017. 
This week, a cooperative export assistance program accepted requests for 2.57 million 
pounds (1,165 metric tons) of cheese. So far this year, the program has assisted 
member cooperatives who have contracts to sell 34.17 million pounds of cheese in 
export markets. Midwestern wholesale prices are unchanged for Swiss cuts, up $.0100 
for process and up $.0475 for all other types.
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5975-1.9575       
Brick And/Or Muenster 5#                   : 2.0250-2.4500       
Cheddar 40# Block                          : 1.7525-2.1475       
Monterey Jack 10#                          : 2.0000-2.2050       
Blue 5#                                    : 2.2925-3.2800       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8250-2.7650       
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-