MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. June 28, 2017 (REPORT 26) MIDWEST CHEESE: Although extra loads of milk are not as prevalent as they were over the last few weeks, some Midwest cheese makers report loads of distressed milk are still available at $1 to $3 below Class. Manufacturers report running full schedules, but intakes have eased back a load or two, allowing them to do quick repairs and maintenance as needed. There is an expectation of more available loads over the Fourth of July holiday and cheese makers will have to weigh the pros and cons of taking on any additional milk. Demand is mixed. Some contacts say curds and readily consumed product orders are strong. Some processors report demand from other food manufacturers and food service businesses is steady and cheese continues to move well through regular contracts. And finally, a few other industry contacts think cheese orders are lackluster. Inventories are heavy for both blocks and barrels. Some industry contacts suggest the all-time high for total natural cheese stocks may represent efforts by cheese makers to find homes for heavy milk intakes through various cheese aging programs for hard Italian cheeses, aged cheddar and other hard cheeses. The DMN National Retail Report-Dairy shows that June 23-29 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.14, 17 cents below the national average. Midwest prices range from $1.67-$3.29. One year ago, the national price was $2.24. For 8 ounce blocks, the Midwest average price is $1.97, 44 cents below the national average price. Midwest ads are priced from $1.25-$2.99. Last year, the national price was $2.25. Midwestern wholesale prices are unchanged for Swiss cuts, but down $.0525 for process and down $.0600 for all other types. This week, a cooperative export assistance program accepted requests for 1.695 million pounds (769 metric tons) of cheese. So far this year, the program has assisted member cooperatives who have contracts to sell 40.0 million pounds of cheese in export markets. According to the NASS Cold Storage report, U.S. stocks of cheese (total natural) at the end of May 2017 were 1.34 billion pounds, 1 percent above April 2017 and up 7 percent from May 2016. American stocks were 12 percent more, other natural stocks were unchanged, and Swiss stocks were 5 percent higher than last year. In the East North Central region (Wisconsin, Illinois, Michigan, Indiana and Ohio), American cheese stocks at the end of May 2017, were 20 percent higher than last year and 3 percent more than last month. Other cheese stocks in the East North Central region were 4 percent higher than May 2016 and 1 percent 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 May 2017, were 3 percent higher than last year, but 2 percent lower higher than last month. Other cheese stocks in the West North Central region were 6 percent higher than May 2016, but 1 percent below March 2017. In CME Group trading Wednesday, barrels closed at $1.3700, up $.0125 from last Wednesday and blocks closed at $1.5100, down $.0500 from last Wednesday. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.4450-1.8050 Brick And/Or Muenster 5# : 1.9325-2.3575 Cheddar 40# Block : 1.6600-2.0550 Monterey Jack 10# : 1.9075-2.1125 Blue 5# : 2.2000-3.1875 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7325-2.6725 Grade A Swiss Cuts 6 - 9# : 2.7175-2.8350 1300CT Mike.Bandli@ams.usda.gov 608-422-8592 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