MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  October 4, 2017 (REPORT 40)                       

MIDWEST CHEESE:    

Provolone and mozzarella producers' orders are seasonally strong. However, as 
market prices have increased and held somewhat steady since early last week, some 
buyers are holding off to await a possible price downturn. The wait and see 
approach has some producers reporting a slight ebb in sales this week. Curd 
producers are reporting unseasonably strong demand. Milk is becoming less 
available. Reported spot milk prices into cheese plants ranged from flat market 
to $2 over Class. Cheese production varies, but some plants have added days to 
the workweek. Other cheese plants are undergoing some scheduled maintenance 
and/or plant updates. Contacts view the current market tone as steady. Increasing 
market prices along with the relatively slight CME block to barrel price gap are 
factors in the positive market undertones. However, large and aging cheese stocks 
continue to be the thorn in the side of the bull. The DMN National Retail Report-
Dairy shows that September 29-October 5 Midwest ads for 8 ounce shred cheese have 
a weighted average advertised price of $2.13, 15 cents below the national 
average. Midwest prices range from $1.50-$3.00. One year ago, the national price 
was $2.31. For 8 ounce blocks, the Midwest average price is $2.13, 12 cents below 
the national average price. Midwest ads are priced from $1.50-$3.00. Last year, 
the national price was $2.27. The CME Group September 2017 monthly average price 
for barrels, $1.5691, is down from the August average of $1.5993 and down from 
the monthly average of a year ago, $1.5415. Blocks' September average price, 
$1.6370, is down from the $1.6852 August monthly average, but up from $1.6224 one 
year ago. In CME Group trading Wednesday, barrels closed at $1.7300, unchanged 
from last Wednesday and blocks closed at $1.7500, up $.0175 from last Wednesday. 
Midwestern wholesale prices are unchanged for Swiss cuts, up $.1875 for process 
and up $.1150 for all other types. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.7975-2.1575       
Brick And/Or Muenster 5#                   : 2.0775-2.5025       
Cheddar 40# Block                          : 1.8050-2.2000       
Monterey Jack 10#                          : 2.0525-2.2575       
Blue 5#                                    : 2.3450-3.3325       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.8775-2.8175       
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