Cheese - Midwest
USDA - Wed Dec 06, 1:04PM CST
MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  December 6, 2017 (REPORT 49)                      

MIDWEST CHEESE

Milk remains available for cheese production in the Midwest. Cheesemakers are reporting 
spot milk prices ranging from flat to $4 under Class for the second consecutive week. 
Holiday milk offers are beginning to come in. However, some cheese producers are prepared 
to hold off until prices decline. Other cheese producers report being sufficiently set up 
from mid-December into early 2018. Cheese production is steady and is not expected to 
slow until the holidays. Cheese sales are steady to slower. Cheese contacts remain addled 
by the atypical inversion of market prices. November's average CME barrel price 
outweighed the average block price for only the second month of the year, the first month 
being February. In CME Group trading Wednesday, barrels closed at $1.5700, up $.0600 from 
last Wednesday and blocks closed at $1.4700, down $.1300 from last Wednesday. The DMN 
National Retail Report-Dairy shows that December 1-7 Midwest ads for 8 ounce shred cheese 
have a weighted average advertised price of $1.83, 33 cents below the national average. 
Midwest prices range from $.99-$2.50. One year ago, the national price was $2.32. For 8 
ounce blocks, the Midwest average price is $1.55, 77 cents below the national average 
price. Midwest ads are priced from $.99-$2.00. Last year, the national price was $2.25. 
The CME Group November 2017 monthly average price for barrels, $1.6656, is down from the 
October average of $1.6970 and down from the monthly average of a year ago, $1.7424. 
Blocks' November average price, $1.6590, is down from the $1.7305 October monthly average 
and down from $1.8775 one year ago. Dairy Products (NASS) reports total U.S. cheese 
production, for October 2017, was 1.066 billion pounds, 1.7 percent above last year. 
Central total cheese production for October 2017 was 484.4 million pounds, 4.8 percent 
higher than September 2017. For total cheese and various types of cheese, October 2017 
U.S. and Central cheese production percentage changes compared to October 2016 were as 
follows:

Oct Production 2017 vs 2016	U.S.		Central
Total		        + 1.7%	+ 2.3%
American		+ 4.0%	+ 4.5%
Cheddar		        + 4.1%	+ 8.4%
Total Italian		+ 1.8% 	+ 5.5%
Mozzarella		+ 0.9%	+ 4.0%

Midwestern wholesale prices are down $.0225 for Swiss cuts, down $.1275 for process and 
down $.0200 for all other types.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6300-1.9900       
Brick And/Or Muenster 5#                   : 1.9500-2.3750       
Cheddar 40# Block                          : 1.6775-2.0725       
Monterey Jack 10#                          : 1.9250-2.1300       
Blue 5#                                    : 2.2175-3.2050       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7500-2.6900       
Grade A Swiss Cuts 6 - 9#                  : 2.7825-2.9000       









2017 U.S. Cheese and Curd Exports (USDA-FAS)

                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

October              59.5            +  9

TOTAL, JAN - OCT    627.2            + 22
 1 Mexico           177.3            + 10
 2 South Korea       99.7            + 33
 3 Japan             62.7            + 28
 4 Australia         52.6            + 91
 5 China             25.8            + 41

2017 U.S. Cheese and Curd Imports (USDA-FAS)
(Imports for Consumption)

                                           2017 Imports      % Change From
                                           (Million Lb.)       1 Year Ago

October Imports
  TOTAL Cheese and Curd (H.S. Code 0406)       41.1              ...
  Cheese, Except Fresh (H.S. Code 040690)      35.5             -  2
  Fresh Cheese (H.S. Code 040610)               2.5             + 15
  Cheese, Processed (H.S. Code 040630)          1.7             + 47
  Cheese, Blue-Veined (H.S. Code 040640)        1.2             -  2

                                           2017 Imports      % Change From
                                           (Million Lb.)       1 Year Ago

TOTAL, JAN - OCT                              327.1             - 10
 1 Italy                                       63.9             +  8
 2 France                                      38.7             -  5
 3 Netherlands                                 25.5             -  3
 4 Spain                                       21.4             +  6
 5 Germany                                     20.7             + 23




1100CT 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