MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  September 6, 2017 (REPORT 36)                     

MIDWEST CHEESE:

Reports on milk availability for cheese production are mixed in the Central region. Some 
cheese producers report that late last week, prior to the holiday, expected milk supplies 
were cut into by bottlers for school intakes. Other Class III plants took in adequate 
milk supplies for current production schedules. Spot milk prices into Class III ranged 
from $1.50 under to $1 over Class. Generally, cheese sales are slower for cheesemakers in 
the Midwest. Some cheese producers reported scaling production schedules back, as milk 
supplies are lower and demand has slowed. However, some pizza cheese makers are still 
reporting heavy orders and have bullish expectations for the upcoming fall season. The 
cheese market tone is unstable. Contacts report that long barrel inventories are 
affecting the market tone and giving buyers incentive to wait out sliding market prices. 
The CME Group August 2017 monthly average price for barrels, $1.5993, is up from the July 
average of $1.4396, but down from the monthly average of a year ago, $1.8110. Blocks' 
August average price, $1.6852, is up from the $1.6586 July monthly average, but down from 
$1.7826 one year ago. The DMN National Retail Report-Dairy shows that September 1-7 
Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.06, 
23 cents below the national average. Midwest prices range from $1.67-$2.50. One year ago, 
the national price was $2.19. For 8 ounce blocks, the Midwest average price is $1.94, 17 
cents below the national average price. Midwest ads are priced from $1.67-$2.49. Last 
year, the national price was $2.17. In CME Group trading Wednesday, barrels closed at 
$1.5800, up $.0800 from last Wednesday and blocks closed at $1.6400, up $.1200 from last 
Wednesday. Midwestern wholesale prices are up $.1000 for Swiss cuts, down $.1625 for 
process and down $.1700 for all other types. Dairy Products (NASS) reports total U.S. 
cheese production, for July 2017, was 1.026 billion pounds, 1.0 percent above July 2016. 
Central total cheese production for July 2017 was 474.1 million pounds, 1.4 percent 
higher than June 2017. For total cheese and various types of cheese, July 2017 U.S. and 
Central cheese production percentage changes compared to July 2016 were as follows:

July Production 2017 vs 2016        U.S.        Central
Total Cheese                        + 1.0%      + 3.1%
American                            + 0.2%      + 3.4%
Cheddar                             + 0.8%      + 6.6%
Total Italian                       + 1.2%      + 3.3%
Mozzarella                          + 1.1%      + 3.6%

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5950-1.9550       
Brick And/Or Muenster 5#                   : 1.8950-2.3200       
Cheddar 40# Block                          : 1.6225-2.0175       
Monterey Jack 10#                          : 1.8700-2.0750       
Blue 5#                                    : 2.1625-3.1500       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.6950-2.6350       
Grade A Swiss Cuts 6 - 9#                  : 2.7900-2.9075       

     
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