MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  July 5, 2017 (REPORT 27)                          

MIDWEST CHEESE:  

As milk production has begun to taper in the Midwest, cheese plants continue to 
take in spot loads at $1.00 to $3.00 under Class. Some cheesemakers are 
experiencing more difficulties finding milk, whereas other producers report not 
taking on spot loads. Cheese production continues to be strong, with a little 
more time for plant maintenance as milk intakes are not as heavy as they were 
during spring flush. Cheese demand is somewhat steady. Some mozzarella producers, 
and other pizza cheese producers, report orders are meeting seasonal 
expectations. Most reports on cheese inventories, particularly process cheeses, 
are long. Some cheese producers, however, are maintaining balanced stocks. The 
market tone remains unsettled, as contacts are anxiously regarding the barrel and 
block price gap on the CME, which has persisted in the $.2000 range since mid-
May. In CME Group trading Wednesday, barrels closed at $1.3700, unchanged from 
last Wednesday and blocks closed at $1.5400, up $.0300 from last Wednesday. The 
CME Group June 2017 monthly average price for barrels, $1.3972, is down from the 
May average of $1.4806 and down from the monthly average of a year ago, $1.5301. 
Blocks' June average price, $1.6022, is down from the $1.6264 May monthly 
average, but up from $1.5005 one year ago. The DMN National Retail Report-Dairy 
shows that June 30-July 6 Midwest ads for 8 ounce shred cheese have a weighted 
average advertised price of $2.19, 24 cents below the national average. Midwest 
prices range from $1.88-$2.50. One year ago, the national price was $2.16. For 8 
ounce blocks, the Midwest average price is $2.17, 44 cents below the national 
average price. Midwest ads are priced from $1.88-$2.50. Last year, the national 
price was $2.23. Midwestern wholesale prices are down $.0675 for Swiss cuts, up 
$.0100 for process, but down $.0600 for all other types.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.4550-1.8150       
Brick And/Or Muenster 5#                   : 1.8825-2.3075       
Cheddar 40# Block                          : 1.6100-2.0050       
Monterey Jack 10#                          : 1.8575-2.0625       
Blue 5#                                    : 2.1500-3.1375       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6825-2.6225       
Grade A Swiss Cuts 6 - 9#                  : 2.6500-2.7675       


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