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Midwest Cheese Buyers Seek Out Other Sources

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Some manufacturers continue to report buyers strategizing as to placing 
purchase orders, following recent cash market weakness. However, the ability to do that is mitigated by the reality of some plants already being at full production or near that level.  

At those plants, prospective buyers who held back recently are now being told that the cheese being produced is committed, leaving buyers to seek out other sources.  Cheese is available but may require more calling than some buyers expect.  

The National Dairy Retail Report (DMN) found that Midwest ads for 8 ounce shredded cheese have a weighted average advertised price of $2.09, 28 cents lower than the 
national average, $2.37.  One year ago the national average was $2.27.  

For 8 ounce blocks in the Midwest, the average price is $2.08, 35 cents lower than the national average, $2.43.  One year ago the national average was also $2.44.  National ad numbers for all cheese categories this period decreased by 25% from two weeks ago.  Wisconsin wholesale prices for 1,000 to 5,000 pound mixed lots of process cheese increased by $.0175, while the remaining varieties are unchanged.  CME trading last week into this week 
reflects weaker cash markets.  Six of the eight previous daily barrel closes 
were down while two were unchanged.   Wednesday both blocks and barrels 
dropped, blocks to $2.1350 and barrels to $2.1300.  This week, a cooperative 
export assistance program accepted requests for 0.873 million pounds of 
cheese.  

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 2.3125-2.6725       
Brick And/Or Muenster 5#                   : 2.5950-3.0200       
Cheddar 40# Block                          : 2.3000-2.7175       
Monterey Jack 10#                          : 2.5700-2.7750       
Blue 5#                                    : 2.8625-3.8500       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 2.4400-3.3350       
Grade A Swiss Cuts 6 - 9#                  : 3.3175-3.4350       


Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: www.marketnews.usda.gov/portal/da                                                   
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