MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  August 23, 2017 (REPORT 34)                        

MIDWEST CHEESE:

Central region discounted milk for cheese production, in some areas within the region, 
remains available. Reported spot milk prices ranged from $1 under to $1 over Class III. 
With schools opening, some of the previously available spot milk supplies are being 
diverted to states outside of the Central region. Curd producers are experiencing a 
record setting season in demand. Both curd and pizza cheese producers have started to 
limit orders, as production capabilities cannot keep up with requests. Traditional cheese 
manufacturers have slowed production, as demand is in a seasonal slowdown. Although NASS 
Cold Storage reports point to generally higher cheese stocks, recent shifts in 
production/demand have some contacts relaying that long barrel inventories are not as 
troubling as they were earlier in the summer. Barrel prices briefly shot up to meet block 
prices early in the week. Cheese contacts are cautiously optimistic about the current 
market tones. According to the NASS Cold Storage report, U.S. stocks of cheese (total 
natural) at the end of July 2017 were 1.375 billion pounds, 4 percent above June 2017 and 
up 8 percent from July 2016. American stocks were 9 percent more, other natural stocks 
were 6 percent more, and Swiss stocks were 5 percent higher than last year. In the East 
North Central region (Wisconsin, Illinois, Michigan, Indiana and Ohio), American cheese 
stocks at the end of July 2017, were 22 percent higher than last year, and up 5 percent 
from last month. Other cheese stocks in the East North Central region were 12 percent 
higher than June 2016 and 7 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 July 2017, were 2 percent lower than last year and 1 
percent lower than last month. Other cheese stocks in the West North Central region were 
1 percent lower than July 2016, but 2 percent above June 2017. The DMN National Retail 
Report-Dairy shows that August 18-24 Midwest ads for 8 ounce shred cheese have a weighted 
average advertised price of $2.24, 4 cents below the national average. Midwest prices 
range from $1.99-$2.99. One year ago, the national price was $2.29. For 8 ounce blocks, 
the Midwest average price is $2.29, 8 cents below the national average price. Midwest ads 
are priced from $2.00-$3.00. Last year, the national price was $2.12. In CME Group 
trading Wednesday, barrels closed at $1.6550, down $.0150 from last Wednesday and blocks 
closed at $1.7000, down $.0350 from last Wednesday. Midwestern wholesale prices are 
unchanged for Swiss cuts, up $.1250 for process and up $.0475 for all other types.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7750-2.1350       
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