MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  July 12, 2017 (REPORT 28)                          

MIDWEST CHEESE: 

Milk intakes are mixed amongst cheesemakers in the Midwest. Some reports indicate 
milk is still available, although storage capacity concerns are hindering some 
producers from taking on extra milk. Other cheese producers report taking on spot 
milk at prices from flat market to $3.00 under Class III. Cheese contacts suggest 
milk suppliers were actively trying to find takers late into last week, as some 
intake facilities were closed for the holiday. Generally, cheese sales range from 
steady to slow. Cheese curd producers, however, are experiencing a seasonal 
robustness in orders. As local fairs and community events are in their prime 
season, some producers report a shift in production from other varieties to 
curds, for the near term. Process cheese inventories are long in the Midwest. 
Some traditional/artisanal cheese producers report balanced inventories. CME spot 
market cheese prices have been moving up. However, contacts report that although 
prices have trended upward, the block to barrel price gap is distressing for the 
overall market. In CME Group trading Wednesday, barrels closed at $1.4375, up 
$0.0675 from last Wednesday and blocks closed at $1.6300, up $.0900 from last 
Wednesday. The DMN National Retail Report-Dairy shows that July 7-13 Midwest ads 
for 8 ounce shred cheese have a weighted average advertised price of $2.37, 10 
cents above the national average. Midwest prices range from $1.88-$3.00. One year 
ago, the national price was $2.30. For 8 ounce blocks, the Midwest average price 
is $2.02, 18 cents below the national average price. Midwest ads are priced from 
$1.79-$3.00. Last year, the national price was $2.33. This week, a cooperative 
export assistance program accepted requests for 1.490 million pounds (853 metric 
tons) of cheese. So far this year, the program has assisted member cooperatives 
who have contracts to sell 43.3 million pounds of cheese in export markets. Dairy 
Products (NASS) reports total U.S. cheese production, for May 2017, was 1.051 
billion pounds, 4.0 percent above May 2016. Central total cheese production for 
May 2017 was 474.5 million pounds, 2.9 percent higher than May 2016. The Foreign 
Agricultural Service (FAS) reports that January through May 2017 U.S. cheese and 
curd exports totaled 314.0 million pounds, a 22% 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

May                  78.1            + 48

TOTAL, JAN - MAY    314.0            +  22
 1 Mexico            98.3            +  15
 2 South Korea       49.4            +  37
 3 Japan             28.5            +   5
 4 Australia         25.0            + 101
 5 Canada            10.9            +   4

The Foreign Agricultural Service (FAS) reports that January through May 2017 U.S. 
cheese and curd imports totaled 160.4 million pounds, a 14% decrease from a year 
ago.

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

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

May Imports
  TOTAL Cheese and Curd (H.S. Code 0406)       33.6              ...
  Cheese, Except Fresh (H.S. Code 040690)      29.3              ...
  Fresh Cheese (H.S. Code 040610)               2.9             + 27
  Cheese, Processed (H.S. Code 040630)          0.9             - 10
  Cheese, Blue-Veined (H.S. Code 040640)        0.6             - 17

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

TOTAL, JAN - MAY                              160.4            -  14
1 Italy                                        29.0            -   2
2 France                                       17.5            -   5
3 New Zealand                                  14.1            -  38
4 Netherlands                                  12.0            +  15
5 Germany                                      11.0            +  42


Midwestern wholesale prices are unchanged for Swiss cuts, up $.0050 for process 
and up $.0250 for all other types.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.4600-1.8200       
Brick And/Or Muenster 5#                   : 1.9075-2.3325       
Cheddar 40# Block                          : 1.6350-2.0300       
Monterey Jack 10#                          : 1.8825-2.0875       
Blue 5#                                    : 2.1750-3.1625       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7075-2.6475       
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