Reports from some cheese processors point to an inability to take on any extra spot milk

MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  March 29, 2017 (REPORT 13)                         

MIDWEST CHEESE:                                                  

Milk continues to be available for cheesemakers in the Midwest. Reports from some 
cheese processors point to an inability to take on any extra spot milk. Spot milk 
prices have been reported from $1 to $4 under Class. Cheese production, with the 
exception of some plant updates/maintenance, has been active. Reports on domestic 
demand range from steady to increasing. Whey and lactose interest, both domestically 
and internationally, is also trending up for Midwestern cheesemakers. Inventory 
reports vary for cheese. Some producers are comfortable with current stocks, while 
others have started to sell discounted spot cheese in order to maintain inventory 
levels. The market tone is uncertain. In CME Group trading Wednesday, barrels closed 
at $1.3700, down $.0400 from last Wednesday and blocks closed at $1.4450, down $.0050 
from last Wednesday. The DMN National Retail Report-Dairy shows that March 24-30 
Midwest ads for 8 ounce shred cheese have a weighted average advertised price of 
$1.99, 12 cents below the national average. Midwest prices range from $1.67-$2.99. 
One year ago, the national price was $2.28. For 8 ounce blocks, the Midwest average 
price is $1.97, 15 cents below the national average price. Midwest ads are priced 
from $1.67-$2.99. Last year, the national price was $2.51. According to the NASS Cold 
Storage report, U.S. stocks of cheese (total natural) at the end of February 2017 
were 1.257 billion pounds, 3% above January 2017 and up 6% from February 2016. 
American stocks were 8% more, other natural stocks were 3% more, and Swiss stocks 
were 10% higher than last year. In the East North Central region (Wisconsin, 
Illinois, Michigan, Indiana and Ohio), American cheese stocks at the end of February 
2017, were 7% higher than last year and 1% more than last month. Other cheese stocks 
in the East North Central region were 7% higher than February 2016 and 4% more than 
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 
February 2017, were 20% higher than last year and 4% higher than last month. Other 
cheese stocks in the West North Central region were 4% lower than February 2016, but 
2% above January 2017. This week, a cooperative export assistance program accepted 
requests for 2.381 million pounds (1,088 metric tons) of cheese. So far this year, 
the program has assisted member cooperatives who have contracts to sell 21.483 
million pounds of cheese in export markets. Midwestern wholesale prices are unchanged 
for Swiss cuts, up $.0150 for process and up $.0600 for all other types.
                                                                 
WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.4850-1.8450       
Brick And/Or Muenster 5#                   : 1.7975-2.2225       
Cheddar 40# Block                          : 1.5250-1.9200       
Monterey Jack 10#                          : 1.7725-1.9775       
Blue 5#                                    : 2.0650-3.0525       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.5975-2.5375       
Grade A Swiss Cuts 6 - 9#                  : 2.8975-3.0150       


1300CT [email protected] (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-

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