MD_DA830 DA MD DA830 Cheese - Midwest MADISON, WI. October 11, 2017 (REPORT 41) MIDWEST CHEESE: Midwestern cheese producers continue to report decreasing milk availabilities. Reported spot milk prices, into Class III production, ranged from flat market to $2.00 over Class. Some cheesemakers report that spot milk prices are expected to increase in the near term. Cheese demand is steady to increasing, as market prices have been fairly consistent in October. Some buyers, who were holding back on purchasing while expecting price declines, have reentered the market. Cheese production, in some plants, has been eased back as milk has become less available. Some plant managers have decreased production days in order to update and/or upgrade plant equipment. The cheese market tone remains fairly positive, as both block and barrel prices have remained above $1.70 for over a week. The DMN National Retail Report-Dairy shows that October 6-12 Midwest ads for 8 ounce shred cheese have a weighted average advertised price of $2.23, 24 cents below the national average. Midwest prices range from $1.99-$2.50. One year ago, the national price was $2.25. For 8 ounce blocks, the Midwest average price is $2.27, 25 cents below the national average price. Midwest ads are priced from $1.99-$2.50. Last year, the national price was $2.26. In CME Group trading Wednesday, barrels closed at $1.7150, down $.0150 from last Wednesday and blocks closed at $1.7575, up $.0075 from last Wednesday. Dairy Products (NASS) reports total U.S. cheese production, for August 2017, was 1.03 billion pounds, 2.3 percent above August 2016. Central total cheese production for August 2017 was 469.0 million pounds, 1.2 percent lower than July 2017. For total cheese and various types of cheese, August 2017 U.S. and Central cheese production percentage changes compared to August 2016 were as follows: Aug Production 2017 vs 2016 U.S. Central Total + 2.3% + 3.7% American + 1.5% + 5.9% Cheddar + 1.2% + 7.1% Total Italian + 2.5% + 5.2% Mozzarella + 2.3% + 3.6% 2017 U.S. Cheese and Curd Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago August 67.0 + 34 TOTAL, JAN - AUG 508.4 + 24 1 Mexico 150.9 + 16 2 South Korea 82.2 + 40 3 Japan 50.6 + 22 4 Australia 40.7 + 85 5 China 18.6 + 31 2017 U.S. Cheese and Curd Imports (USDA-FAS) (Imports for Consumption) 2017 Imports % Change From (Million Lb.) 1 Year Ago August Imports TOTAL Cheese and Curd (H.S. Code 0406) 33.4 - 6 Cheese, Except Fresh (H.S. Code 040690) 29.1 - 4 Fresh Cheese (H.S. Code 040610) 2.8 - 7 Cheese, Processed (H.S. Code 040630) 0.8 - 35 Cheese, Blue-Veined (H.S. Code 040640) 0.7 - 15 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - AUG 257.6 - 11 1 Italy 50.5 + 9 2 France 28.8 - 10 3 Netherlands 19.5 + 2 4 Spain 17.5 + 3 5 Germany 16.9 + 28 Midwestern wholesale prices are down $.1100 for Swiss cuts, up $.0175 for process and up $.0300 for all other types. WISCONSIN WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Process American 5# Loaf : 1.8150-2.1750 Brick And/Or Muenster 5# : 2.1075-2.5325 Cheddar 40# Block : 1.8350-2.2300 Monterey Jack 10# : 2.0825-2.2875 Blue 5# : 2.3750-3.3625 Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9075-2.8475 Grade A Swiss Cuts 6 - 9# : 2.6800-2.7975 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