MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. August 9, 2017 (REPORT 32) MIDWEST CHEESE: Milk continues to be somewhat available for cheese production in the Midwest region. Some cheese producers report being open to taking on more spot milk than is available. Some milk suppliers have limited spot sales for cheesemakers, as suppliers are beginning to move milk into other regions where schools are commencing sooner. Spot milk prices were reported from flat market to $1.50 under Class. Midwest cheese production is steady. Food service orders continue to keep some plants running active schedules, although more contacts report being able to allot an occasional day off after months of heavy production schedules. Retail demand, overall, is slow to steady. Some producers report similar numbers to last year, whereas others are experiencing a bit lighter demand than this time in 2016. Contacts were optimistic this time last week regarding the CME cash prices. However, barrel and block prices have consistently slipped since last Tuesday's bounce, as an uncertain market tone persists. The DMN National Retail Report-Dairy shows that August 4-10 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.08, 11 cents below the national average. Midwest prices range from $1.49-$2.50. One year ago, the national price was $2.29. For 8 ounce blocks, the Midwest average price is $1.73, 54 cents below the national average price. Midwest ads are priced from $1.49-$2.00. Last year, the national price was $2.14. In CME Group trading Wednesday, barrels closed at $1.5925, up $.0025 from last Wednesday and blocks closed at $1.6800, down $.0600 from last Wednesday. Dairy Products (NASS) reports total U.S. cheese production, for June 2017, was 1.029 billion pounds, 3.2 percent above June 2016. Central total cheese production for June 2017 was 466.8 million pounds, 2.4 percent lower than May 2017. The CME Group July 2017 monthly average price for barrels, $1.4396, is up from the June average of $1.3972 and down from the monthly average of a year ago, $1.7363. Blocks' July average price, $1.6586, is up from the $1.6022 June monthly average, but down from $1.6613 one year ago. Midwestern wholesale prices are up $.0400 for Swiss cuts, up $.1050 for process and up $.0225 all other types. 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago June 67.3 + 32 TOTAL, JAN - JUN 381.4 + 24 1 Mexico 117.1 + 16 2 South Korea 63.5 + 48 3 Japan 36.5 + 10 4 Australia 27.3 + 68 5 China 13.6 + 39 2017 U.S. Cheese and Curd Imports (USDA-FAS) (Imports for Consumption) 2017 Imports % Change From (Million Lb.) Last Month June Imports TOTAL Cheese and Curd (H.S. Code 0406) 32.8 - 2 Cheese, Except Fresh (H.S. Code 040690) 27.8 - 5 Fresh Cheese (H.S. Code 040610) 3.1 + 6 Cheese, Processed (H.S. Code 040630) 1.1 + 21 Cheese, Blue-Veined (H.S. Code 040640) 0.9 + 60 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - JUN 193.3 - 12 1 Italy 36.3 + 4 2 France 21.7 - 4 3 Netherlands 14.5 + 7 4 New Zealand 14.3 - 43 5 Spain 12.8 ... WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.6675-2.0275 Brick And/Or Muenster 5# : 2.1050-2.5300 Cheddar 40# Block : 1.8325-2.2275 Monterey Jack 10# : 2.0800-2.2850 Blue 5# : 2.3725-3.3600 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9050-2.8450 Grade A Swiss Cuts 6 - 9# : 2.6900-2.8075 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