MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  August 30, 2017 (REPORT 35)                        

MIDWEST CHEESE:                                                  

Milk is fairly available for cheese processing in the Midwest. Spot milk 
prices held steady at $1 under to $1 over Class, as processors are reporting 
pre-holiday spot milk availability, which is expected to reduce following the 
long weekend. Cheese orders are mixed for cheesemakers. Traditional style 
cheesemakers report a seasonal slowdown in demand, whereas pizza cheese 
producers are continuing to experience upticks. Some mozzarella/provolone 
producers have reported that orders are outpacing production capabilities, and 
in some cases they are forced to push back or delay larger shipments. Cheese 
contacts expect with current market prices experiencing downtrends, some 
buyers are waiting for further declines. The optimism of the cheese markets 
has diminished since early last week, as both barrel and block prices have 
spiraled downward. Even with shifts in production and fairly bullish demand 
reports, contacts suggest market prices will be negatively affected by the 
current inventory levels of barrel cheese. The DMN National Retail Report-
Dairy shows that August 25-31 Midwest ads for 8 ounce shred cheese have a 
weighted average advertised price of $2.16, 19 cents below the national 
average. Midwest prices range from $1.88-$2.50. One year ago, the national 
price was $2.30. For 8 ounce blocks, the Midwest average price is $2.13, 21 
cents below the national average price. Midwest ads are priced from $1.88-
$2.50. Last year, the national price was $2.17. Midwestern wholesale prices 
are unchanged for Swiss cuts, down $.0175 for process and down $.0400 for all 
other types. In CME Group trading Wednesday, barrels closed at $1.5000, down 
$.1550 from last Wednesday and blocks closed at $1.5200, down $.1800 from last 
Wednesday.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7575-2.1175       
Brick And/Or Muenster 5#                   : 2.0650-2.4900       
Cheddar 40# Block                          : 1.7925-2.1875       
Monterey Jack 10#                          : 2.0400-2.2450       
Blue 5#                                    : 2.3325-3.3200       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8650-2.8050       
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