MD_DA830 Cheese - Midwestern U.S. Report 6 - Released on February 05, 2020 Cheese reports vary this week. Some cheese plant managers are beginning to point out the drastic shift in markets since fall 2019, and how they are negatively affecting orders. Others suggest 2020 sales have been steady. One certainty is the availability of milk, which remains easily accessible. A growing number of cheese contacts say they are pushing spot milk loads back onto the market, in order to keep cheese production in balance with demand. There is no doubt that the record-breaking block over barrel price gap on the CME is far from helpful to cheesemakers. A growing number of Midwestern cheese contacts are suggesting it has become the veritable ursine elephant in the room. Regarding cheese availability, more buyers are reporting receiving more calls in the last week. All said, even though producers are trying to maintain production levels, cheese is available. Midwestern wholesale prices are unchanged for Swiss cuts, down $.0575 for process, and down $.0700 for all other types. NATIONAL RETAIL REPORT DAIRY – CHEESE SUMMARY Advertised Prices at Major Retail Supermarket Outlets ending during the period of 01/31/2020 to 02/06/2020 Cheese 8 oz. Blocks Weighted Average Price National This Period Last Week Last Year Conventional $2.35 $2.38 $2.05 Organic n.a. n.a. $3.99 Regional (Conventional) Wtd. Ave. Low High Midwest $1.89 $1.33 $1.99 South Central $2.06 $1.67 $2.50 Cheese 8 oz. Shred Weighted Average Price National This Period Last Week Last Year Conventional $2.24 $2.43 $2.11 Organic n.a. $2.99 $3.99 Regional (Conventional) Wtd. Ave. Low High Midwest $1.99 $1.33 $2.50 South Central $2.14 $1.67 $2.50 WISCONSIN WHOLESALE SELLING PRICES: DELIVERED DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS)) Blue 5 pounds 2.5600-3.6300 Brick 5 pounds 2.2925-2.7175 Cheddar 40 pound Block 2.0150-2.4150 Monterey Jack 10 pounds 2.2675-2.4725 Mozzarella 5-6 pounds 2.0925-3.0375 Muenster 5 pounds 2.2925-2.7175 Process American 5 pound Loaf 1.6425-2.0025 Swiss 6-9 pound Cuts 3.0525-3.1700 Information for the period February 3 - 7, 2020, issued weekly Secondary Sourced Information: The CME Group January 2020 monthly average price for barrels was $1.5721, compared to $1.8410 in December 2019; blocks’ average price was $1.9142, compared to $1.8764 in December. Dairy Products Report – Cheese Summary Released February 4, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Cheese Production – United States: December 2018 and 2019 Monthly Production (1000 pounds) Percent Change from Total Cheese 1 Dec Nov Dec Dec Nov Region 2018 2019 2019 2018 2019 United States 1,112,411 1,100,600 1,114,456 0.2 1.3 Atlantic 131,286 133,779 137,068 4.4 2.5 Central 501,818 506,493 514,487 2.5 1.6 West 479,307 460,328 462,901 -3.4 0.6 Monthly Production (1000 pounds) Percent Change from American Cheese 2 Dec Nov Dec Dec Nov Region 2018 2019 2019 2018 2019 United States 448,340 434,896 456,660 1.9 5.0 Atlantic 28,719 28,577 28,131 -2.0 -1.6 Central 222,662 218,933 231,098 3.8 5.6 West 196,959 187,386 197,431 0.2 5.4 Monthly Production (1000 pounds) Percent Change from Italian Cheese Dec Nov Dec Dec Nov Region 2018 2019 2019 2018 2019 United States 479,005 474,076 470,744 -1.7 -0.7 Atlantic 61,060 59,641 59,047 -3.3 -1.0 Central 185,621 186,697 188,455 1.5 0.9 West 232,324 227,738 223,242 -3.9 -2.0 Cheese Production – Cumulative Production January - December Cumulative Production Percent Change (1000 pounds) from Cheese Type 2018 2019 2018 Total cheese 1 13,024,587 13,121,085 0.7 American Cheese 2 5,253,833 5,221,285 -0.6 Italian Cheese 5,556,850 5,665,032 1.9 1/ Excludes cottage cheese. 2/ Includes cheddar, colby, washed curd, stirred curd, Monterey and jack. Published by: Dairy Market News - Madison, WI ISRAEL WEBER, 608-422-8601 Email: israel.weber@usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: https://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News): https://mymarketnews.ams.usda.gov