Midwest Cheese Market

MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  May 23, 2012 (REPORT 21)                           

MIDWEST CHEESE:                                                  
                                                                 
Some Midwest Cheddar plants are presently selling Cheddar with high 
suitability for aging at a premium.  But looking further ahead this year, 
there is increasing buyer uncertainty as to Cheddar prices, leading some 
manufacturers to expect some sales slowdown moving ahead.   One response is 
planning to move cheese into export through CWT to remove it from domestic 
markets.  Bulk Mozzarella production is in good balance with demand in the 
region.  While there is no widespread change in days per week of overall 
cheese manufacturing this week, some plants have reduced vat numbers each 
day.  Some other plants anticipate reducing days of production after the 
holiday weekend.   NASS reported that total natural cheese stocks in 
refrigerated warehouses on April 30, 2012 were up 2% from the previous month 
but down 1% from April 30 last year.  Stocks of American cheese, 628.4 
million pounds, were up 1% from both last year and last month.  Stocks of 
"Other" natural cheese, 367.6 million pounds, were down 5% from last year 
but up 4% from last month.  Total natural cheese, 1,024.8 million pounds, 
was down 1% from last year but up 2% from last month.  This week through 
Wednesday there have been CME sales of blocks each day, but no price 
movement for the current week.  There have been no sales of barrels this 
week, but the price of barrels moved up 1 cent Wednesday.  Last week's 
average for barrels was up $.0020 and for blocks down $.0025.  Cooperatives 
Working Together (CWT) has accepted requests for export assistance to sell a 
total of 3.578 million pounds (1,623 metric tons) of Cheddar and Monterey 
Jack cheese. The product will be delivered May through November 2012.  
During 2012, CWT has assisted member cooperatives in making export sales of 
Cheddar, Monterey Jack and Gouda cheese totaling 53.8 million pounds.

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.6475-2.3525       
Brick And/Or Muenster 5#                   : 1.8875-2.4475       
Cheddar 40# Block                          : 1.8875-2.8725       
Monterey Jack 10#                          : 1.8575-2.8725       
Blue 5#                                    : 2.1525-3.1375       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7325-2.9725       
Grade A Swiss Cuts 6 - 9#                  : 2.6650-2.9825      


1:00 CDST eric.graf@ams.usda.gov

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