MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  May 31, 2017 (REPORT 22)                           

MIDWEST CHEESE:

Milk is readily available for cheese production in the Midwest. Spot milk prices 
range from $3.50 to $6.00 under Class. Cheese sales are generally strong. 
Packaged retail cheese, pizza cheese and specialty type cheeses are selling well. 
Some process cheese producers report contractually steady demand, but barrel 
sales are expected to pick up in line with warming temperatures. Cheese 
producers' reports on inventories vary. Barrel inventories are generally long. 
Some block producers report balanced inventories, whereas others are concerned 
about the limited storage space remaining. The cheese market tone is mixed. Block 
prices, on the CME, have been particularly strong. However, many contacts are 
anxious regarding the relatively large block to barrel price variance. Contacts 
suggest a price gap above $.1000 is a sign of instability. In CME Group trading 
Wednesday, barrels closed at $1.5450, up $.0825 from last Wednesday and blocks 
closed at $1.7450, up $.0800 from last Wednesday. The DMN National Retail Report-
Dairy shows that May 26-June 1 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.02, 17 cents below the national average. 
Midwest prices range from $1.33-$2.50. One year ago, the national price was 
$2.19. For 8 ounce blocks, the Midwest average price is $1.83, 24 cents below the 
national average price. Midwest ads are priced from $0.99-$2.50. Last year, the 
national price was $2.24.This week, a cooperative export assistance program 
accepted requests for 3.54 million pounds (1,604 metric tons) of cheese. So far 
this year, the program has assisted member cooperatives who have contracts to 
sell 37.71 million pounds of cheese in export markets. Midwestern wholesale 
prices are unchanged for Swiss cuts, down $.0200 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                   : 1.5775-1.9375       
Brick And/Or Muenster 5#                   : 2.0475-2.4725       
Cheddar 40# Block                          : 1.7750-2.1700       
Monterey Jack 10#                          : 2.0225-2.2275       
Blue 5#                                    : 2.3150-3.3025       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8475-2.7875       
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-