MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  June 07, 2017 (REPORT 23)                          

MIDWEST CHEESE:                                                  
                                                                 
Milk availability for cheesemakers is mixed this week. Some producers report the 
continuance of abundant milk supplies, but other cheese producers reported receiving 
noticeably fewer offers. Milk spots were reported from $2.50 to $6.00 under Class. 
After weeks of generally strong cheese sales, Midwest cheese producers are reporting 
that demand has slackened a bit after Memorial Day weekend. Cheese inventory reports 
vary from contact to contact. Some pizza cheese producers report light cheese 
inventories in recent weeks, as strong demand has dipped into stored cheese. The 
cheese market tone is uncertain. CME market prices have declined since late last week 
for both blocks and barrels, and the CME price gap remains large. In CME Group trading 
Wednesday, barrels closed at $1.4250, down $.1200 from last Wednesday and blocks closed 
at $1.6500, down $.0950 from last Wednesday. The DMN National Retail Report-Dairy shows 
that May June 2-8 Midwest ads for 8 ounce shred cheese have a weighted average 
advertised price of $2.17, 11 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 $2.16, 10 cents below the national average price. Midwest 
ads are priced from $1.67-$2.50. Last year, the national price was $2.26. The CME 
Group May 2017 monthly average price for barrels, $1.4806, is up from the April 
average of $1.4307 and up from the monthly average of a year ago, $1.3529. Blocks' 
May average price, $1.6264, is up from the $1.4976 April monthly average and up from 
$1.3174 one year ago. Dairy Products (NASS) reports total U.S. cheese production, for 
April 2017, was 1.039 billion pounds, 3.7 percent above April 2016. Central total 
cheese production for April 2017 was 469.2 million pounds, 3.7 percent lower than 
March 2017. For total cheese and various types of cheese, April 2017 U.S. and Central 
cheese production percentage changes compared to April 2016 were as follows:

                    U.S.          Central
Total               + 3.7%        + 2.6%
American            + 5.3%        + 6.2%
Cheddar             + 4.8%        + 6.0%
Total Italian       + 2.2%        - 0.5%
Mozzarella          + 2.3%        - 0.2%

The Foreign Agricultural Service (FAS) reports that January through April 2017 U.S. 
cheese and curd exports totaled 236.0 million pounds, a 15% increase from the same 
period a year ago.

2017 U.S. Cheese and Curd Exports (USDA-FAS)

                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

April                59.3           + 27

TOTAL, JAN - APR    236.0           + 15
1 Mexico             68.4            ...
2 South Korea        38.1           + 37
3 Japan              21.1           -  6
4 Australia          20.4           +121
5 Canada              9.0           + 10

The FAS reports that January through April 2017 U.S. cheese and curd imports totaled 
126.8 million pounds, a 16% decrease from the same period a year ago.

2017 U.S. Cheese and Curd Imports (USDA-FAS)
(Imports for Consumption)

                                           2017 Imports      % Change From
                                           (Million Lb.)       Last Month

April Imports
  TOTAL Cheese and Curd (H.S. Code 0406)       33.5             -  5
  Cheese, Except Fresh (H.S. Code 040690)      29.3             -  4
  Fresh Cheese (H.S. Code 040610)               2.3             -  5
  Cheese, Processed (H.S. Code 040630)          1.0             - 33
  Cheese, Blue-Veined (H.S. Code 040640)        0.7             + 12
  Cheese, Grated (H.S. Code 040620)             0.2             + 73

                                           2017 Imports      % Change From
                                           (Million Lb.)       1 Year Ago

TOTAL, JAN - APR                              126.8             - 16
1 Italy                                        22.8             -  5
2 France                                       13.7             -  4
3 New Zealand                                  12.8             - 37
4 Netherlands                                   9.4             + 18
5 Spain                                         7.8             -  1
                                                                 
Midwestern wholesale prices are down $.1225 for Swiss cuts, but up $.0450 for process 
and up $.0450 for all other types.
                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6225-1.9825       
Brick And/Or Muenster 5#                   : 2.0925-2.5175       
Cheddar 40# Block                          : 1.8200-2.2150       
Monterey Jack 10#                          : 2.0675-2.2725       
Blue 5#                                    : 2.3600-3.3475       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8925-2.8325       
Grade A Swiss Cuts 6 - 9#                  : 2.7175-2.8350       
   
   
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-