MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  September 27, 2017 (REPORT 39)                     

MIDWEST CHEESE:

Cheese demand differs by variety, but there has been a noticeable shift upward 
for provolone and mozzarella orders. As football is now underway, pizza cheese 
manufacturers are adding production days to fulfill steady to heavy orders. Milk 
availability is also mixed. Some cheesemakers, in certain areas, are still 
receiving spot milk offers. Cheese manufacturers in other areas are experiencing 
fewer milk offers. Reported spot milk prices, into Class III production, ranged 
from flat to $1 over. Fresh cheese inventories are reportedly harder to find, 
whereas aged cheese stocks are long. The cheese market tone is unstable. CME 
market prices are stronger week over week, but cheese contacts are not altogether 
optimistic that the market will not shift downward in the near term. The DMN 
National Retail Report-Dairy shows that September 22-28 Midwest ads for 8 ounce 
shred cheese have a weighted average advertised price of $2.25, 6 cents above the 
national average. Midwest prices range from $1.79-$2.50. One year ago, the 
national price was $2.16. For 8 ounce blocks, the Midwest average price is $2.18, 
7 cents above the national average price. Midwest ads are priced from $1.99-
$2.50. Last year, the national price was $2.18. According to the NASS Cold Storage 
report, U.S. stocks of cheese (total natural) at the end of August 2017 were 1.333 
billion pounds, 3 percent below July 2017, but up 7 percent from August 2016. 
American stocks were 8 percent more, other natural stocks were 7 percent more, and 
Swiss stocks were 3 percent higher than last year. In the East North Central region 
(Wisconsin, Illinois, Michigan, Indiana and Ohio), American cheese stocks at the end 
of August 2017, were 18 percent higher than last year, but down 4 percent from last 
month. Other cheese stocks in the East North Central region were 13 percent higher 
than August 2016 and unchanged from 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 August 2017, were 4 percent lower than last 
year and 8 percent lower than last month. Other cheese stocks in the West North 
Central region were 2 percent lower than August 2016 and 1 percent below July 
2017. In CME Group trading Wednesday, barrels closed at $1.7300, up $.2175 from 
last Wednesday and blocks closed at $1.7325, up $.1350 from last Wednesday. 
Midwestern wholesale prices are unchanged for Swiss cuts, up $.0025 for process, 
but down $.0250 for all other types. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6100-1.9700       
Brick And/Or Muenster 5#                   : 1.9625-2.3875       
Cheddar 40# Block                          : 1.6900-2.0850       
Monterey Jack 10#                          : 1.9375-2.1425       
Blue 5#                                    : 2.2300-3.2175       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7625-2.7025       
Grade A Swiss Cuts 6 - 9#                  : 2.7900-2.9075       



1300CT Israel.weber@ams.usda.gov 608-422-8601
Al.yang@ams.usda.gov 608-422-8589
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