MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  August 2, 2017 (REPORT 31)                          

MIDWEST CHEESE:  

Cheese producers in the Midwest are reporting that milk supplies are still 
available, but noticeably lower than this time last month. A majority of 
spot milk prices range from flat market to $2 under Class III, although 
some situational loads were brought into cheese plants as low as $3.50 
under. Food service orders are growing for specialty/traditional 
cheesemakers. Pizza cheese producers report sales are meeting seasonal 
expectations. Curd producers are still experiencing a seasonal push as 
state fairs are beginning this week in Midwestern states. Cheese inventory 
reports vary by plant. Some cheese producers are reporting that plant 
employees were granted some days off, as milk intakes have been lighter. 
Barrel prices jumped on the CME Tuesday. Although the block to barrel 
price gap is still relatively large, many contacts suggest this is a 
positive movement. Expectations were that prices would eventually 
converge, and contacts point out that barrel prices increasing is much 
preferred to the alternative. The DMN National Retail Report-Dairy shows 
that July 28-August 3 Midwest ads for 8 ounce shred cheese have a weighted 
average advertised price of $2.05, 4 cents below the national average. 
Midwest prices range from $1.49-$3.49. One year ago, the national price 
was $2.22. For 8 ounce blocks, the Midwest average price is $2.01, 15 
cents below the national average price. Midwest ads are priced from $1.49-
$3.49. Last year, the national price was $2.05. In CME Group trading 
Wednesday, barrels closed at $1.5900, up $.1400 from last Wednesday and 
blocks closed at $1.7400, up $.0325 from last Wednesday. Midwestern 
wholesale prices are unchanged for Swiss cuts and up $.0125 for process 
and all other types.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5625-1.9225       
Brick And/Or Muenster 5#                   : 2.0825-2.5075       
Cheddar 40# Block                          : 1.8100-2.2050       
Monterey Jack 10#                          : 2.0575-2.2625       
Blue 5#                                    : 2.3500-3.3375       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8825-2.8225       
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