MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  July 26, 2017 (REPORT 30)                          

MIDWEST CHEESE: 

Cheese demand reports in the Central region vary. Pizza cheese producers report 
upticks in orders and expect to get busier in the next few weeks. Curd producers 
continue to report a strong, seasonal push. Cheddar and traditional producers' 
demand varies from mediocre to seasonally appropriate. Cheese production in the 
Midwest varies, but generally plants remain on regular and active schedules. Milk 
availability has decreased. The majority of reported spot milk loads were flat 
market to $1 under Class. However, there were some situational loads reported at 
$3 under. Even so, contacts at cheese plants that typically take on spot milk 
loads, suggest diminishing availability. Even as cheese prices continue to be 
somewhat strong, the burdensome price gap on the CME is a recurring 
representation of an unstable market. The DMN National Retail Report-Dairy shows 
that July 21-27 Midwest ads for 8 ounce shred cheese have a weighted average 
advertised price of $2.31, 4 cents below the national average. Midwest prices 
range from $1.99-$3.00. One year ago, the national price was $2.26. For 8 ounce 
blocks, the Midwest average price is $1.95, 29 cents below the national average 
price. Midwest ads are priced from $1.66-$2.00. Last year, the national price was 
$2.13. According to the NASS Cold Storage report, U.S. stocks of cheese (total 
natural) at the end of June 2017 were 1.317 billion pounds, 1 percent below May 
2017, but up 5 percent from June 2016. American stocks were 7 percent more, other 
natural stocks were 3 percent more, and Swiss stocks were 4 percent higher than 
last year. In the East North Central region (Wisconsin, Illinois, Michigan, 
Indiana and Ohio), American cheese stocks at the end of June 2017, were 19 
percent higher than last year, but unchanged from last month. Other cheese stocks 
in the East North Central region were 5 percent higher than June 2016 and 2 
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 June 2017, were 1 percent lower than last year and 5 percent 
lower than last month. Other cheese stocks in the West North Central region were 
1 percent higher than May 2016, but 4 percent below May 2017. In CME Group 
trading Wednesday, barrels closed at $1.4600, down $.0250 from last Wednesday and 
blocks closed at $1.7075, down $.0025 from last Wednesday. Midwestern wholesale 
prices are unchanged for Swiss cuts, up $.0225 for process, and up $.0800 for all 
other types.


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5500-1.9100       
Brick And/Or Muenster 5#                   : 2.0700-2.4950       
Cheddar 40# Block                          : 1.7975-2.1925       
Monterey Jack 10#                          : 2.0450-2.2500       
Blue 5#                                    : 2.3375-3.3250       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8700-2.8100       
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